Plaintiffs settle with Trump administration over library funding cuts

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Plaintiffs who sued the Trump administration over cuts to federal funding for libraries and museums said Thursday that they reached a settlement with the Justice Department that would reverse some of the steps that had been taken against the Institute of Museum and Library Services.

The American Library Association and the American Federation of State, County and Municipal Employees said the agreement would permit IMLS to keep awarding grants and continuing programs that support libraries and museums across the country. The White House referred questions to the Justice Department, and the Justice Department’s Civil Division, which agreed to the settlement, did not immediately comment.

The lawsuit was filed last May and was spearheaded by Democracy Forward, according to the plaintiffs. They said the case sought to stop the administration from “gutting” IMLS after President Donald Trump signed a March 14 executive order that referred to IMLS and several other federal agencies as “unnecessary,” setting off a broader effort, the plaintiffs said, to save money by slashing staff, grants and programs throughout the federal government.

The plaintiffs said staffing changes followed, including placing staff on administrative leave and issuing termination notices. They also said IMLS’s then-acting director began canceling grants and contracts and fired members of the National Museum and Library Services Board, according to the account in the complaint as described in the settlement coverage.

In remarks accompanying the settlement, the American Library Association said the shutdown efforts set off ripple effects for libraries nationwide. “When the administration began shuttering IMLS last year, it set off a chain reaction. Libraries across the country started cutting hours, staff and services people rely on – after-school programs, support for job seekers and connection for older adults,” American Library Association president Sam Helmick said in a press statement.

The settlement terms described by the plaintiffs include steps aimed at reversing harm to agency staff. The settlement said all reductions in force to IMLS staff in 2025 have been rescinded and that all employees who received them are authorized to return to work. It also said IMLS will not issue any more reductions in force “to effectuate” the purpose of the executive order, the settlement said.

American Federation of State, County and Municipal Employees president Lee Saunders said the agreement was a victory for communities that rely on libraries and museums. The plaintiffs said they will file a joint stipulation of dismissal of the case without prejudice in seven days if the government adheres to the settlement’s terms.

The settlement announcement came days after a federal judge in Rhode Island approved an administration request to withdraw its appeal of a district court decision in a separate lawsuit brought by 21 attorneys general, according to the report.

The Institute of Museum and Library Services is the only federal agency tasked with providing funding for the nation’s libraries, and it was established in 1996. Its mission, the plaintiffs noted, is to “advance, support, and empower America’s museums, libraries, and related organizations through grantmaking, research, and policy development,” drawing on functions combined from earlier government agencies including the National Commission on Libraries and Information Science and the Institute of Museum Services.