ALA settles lawsuit, preserving federal agency that funds libraries nationwide

The settlement drew a sharp constitutional line: the executive branch could not effectively defund a congressionally created cultural agency without Congress. By preserving the Institute of Museum and Library Services, the agreement also protected the local library services that had already begun to shrink, including staffing, broadband access, literacy efforts, after-school programs, job-seeker help and support for older adults.

President Donald Trump had set the fight in motion on March 14 with Executive Order 14238, directing IMLS to be eliminated to the maximum extent allowed by law. The administration then moved quickly, placing nearly all agency employees on leave, terminating grants and contracts, dismissing the National Museum and Library Services Board and halting data collection and research. The American Library Association said that was a direct threat to the only federal agency dedicated to funding libraries.

ALA and the American Federation of State, County and Municipal Employees filed suit in April 2025, with Democracy Forward and Gair Gallo Eberhard LLP representing the plaintiffs. A federal court granted a temporary restraining order on May 1, 2025, blocking the dismantling effort just as nearly all IMLS employees were set to be laid off. Later, a separate federal ruling in Rhode Island forced the reinstatement of previously canceled grants on December 3, 2025. On April 6, 2026, a federal court approved the administration’s request to withdraw its appeal in that Rhode Island case, clearing the way for a settlement.

On April 9, 2026, ALA and AFSCME signed a binding settlement with the U.S. Department of Justice that ended the lawsuit and kept IMLS operating. The agreement says the agency will continue awarding grants, conducting research and running programs that support libraries and museums nationwide. It also reinstated previously terminated grants, reversed staff reductions, rescinded all 2025 reductions in force and barred any further steps to carry out the executive order against the agency.

ALA says IMLS supports the nation’s 125,000 public, school, academic and special libraries across all 50 states. ALA President Sam Helmick said the shutdown effort had already forced libraries to cut hours, staff and essential services. AFSCME President Lee Saunders called the agreement a victory for every community that depends on libraries and museums. With National Library Week approaching again, April 19 to 25, the settlement leaves intact a federal funding stream that many libraries treat as basic infrastructure, not optional support.