Review the IMLS settlement and injunction — then shore up funding resilience for libraries and museums with stronger planning and grant readiness.
On April 9, 2026, the U.S. Department of Justice entered into a settlement agreement with the American Library Association (ALA) and the American Federation of State, County, and Municipal Employees (AFSCME), bringing a close to litigation that threatened the future of the Institute of Museum and Library Services (IMLS) — the only federal agency dedicated solely to supporting libraries nationwide.
The settlement marks a reset after more than a year of disruption caused by an executive order that sought to eliminate certain federal agencies. For libraries, museums, and the communities they serve, this may bring a sense of stability back.
Why IMLS funding matters
IMLS funding plays a role in library and museum ecosystems across all 50 states. Federal dollars administered for libraries through IMLS support:
- Public internet access
- Digital literacy initiatives
- Workforce development programs
- Shared database licensing
- Inter-library loan networks
- Educational programming
Similarly, this funding supports museums’ abilities to provide educational programs and exhibits for communities, as well as programs that support staff learning and professional development.
From executive order to injunction: The IMLS dispute
On March 14, 2025, the President signed an executive order directing the elimination “to the maximum extent consistent with applicable law” of several agencies deemed to perform non-statutory functions.
Among those agencies was IMLS, which was created as a mandate by Congress in 1996 through the Museum and Library Services Act.
Implementation of the executive order had immediate consequences. Nearly all IMLS staff were placed on administrative leave, agency research was halted, and federal grant payments to states and local institutions were terminated or frozen.
Libraries and museums across the country reported immediate strains from the loss of funding.
In response, ALA and AFSCME filed suit challenging the executive action as unlawful. Concurrent litigation brought by a coalition of state attorneys general in Rhode Island v. Trump further tested the legality of dismantling IMLS through executive order alone.
In November 2025, a federal court in Rhode Island issued a permanent injunction blocking the administration from eliminating IMLS. Following that ruling, IMLS announced it would reinstate previously terminated grants, restoring funding streams to states and localities.
DOJ settlement: Key terms and outcomes
The April 9 settlement formally resolves ALA v. Sonderling and cements protections for IMLS going forward. Under the agreement, the federal government committed to:
- Continuing IMLS operations in accordance with its congressional mandate
- Reinstating all previously terminated grants nationwide
- Reversing staff reductions and reductions-in-force
- Refraining from any further actions intended to carry out the executive order with respect to IMLS
These commitments mean that IMLS can once again award grants, conduct research, and support library and museum services, subject only to lawful congressional appropriations.
How CLA can help
While the settlement marks a clear legal victory for libraries, museums, and their advocates, it does not eliminate future risk. Budget proposals remain subject to congressional action, and long-term funding stability for cultural institutions continues to depend on legislative priorities rather than executive directives alone.
Organizations can act now by reviewing their processes and streamlining activities to assist with long-term planning to facilitate efficient operations.
CLA can navigate organizations through our business opportunity assessment process, which includes a review of systems, processes, and structure with the purpose of providing recommendations that align with your vision and strategy.