On December 3, the Institute of Museum and Library Services announced on its website that it “has reinstated all federal grants.” This action is the result of a permanent injunction ordered on November 21 by U.S. District Court Judge John J. McConnell Jr. in State of Rhode Island v. Trump, the case brought by 21 states’ attorneys general to halt the dismantling of federal agencies including IMLS.

Those whose grants were terminated learned on November 26 that their funding was restored. Via email, IMLS informed awardees that grants were reinstated, “whether you just began your work or were winding down when the termination notice arrived.”

IMLS invited awardees to apply for “extension requests as well as personnel changes,” using wording that varied slightly depending on the grant. In boilerplate emails shared with PW, extensions lasting through March 31 and extensions of one year were offered. “I will adjust your reporting schedule and you will not need to complete any reports that were due during the time you were under a termination notice,” one such email informed a recipient.

The offer of an extension is attractive to some grantees, including the Council of State Archivists (CoSA), which had two grants terminated. Joy M. Banks, CoSA's executive director, said her council was considering their options.

“There are additional reporting requirements if we do opt to take the extension, and you can imagine that a disruption of eight months can be a challenge for a small nonprofit,” Banks told PW. She added that the reinstatement is “encouraging news for libraries, archives, and museums across the United States. Especially for archives, the IMLS is one of the only federal funding sources for critical work in preservation of our historic records, provision of access to those records, and research into the future of our field.”

Grants are once again being processed, although the agency, which previously employed more than 70 people, is now operating at about 50% of that, according to an ex-IMLS staffer who asked to remain anonymous. Many employees have left, whether because they were laid off, landed a new job, or opted into DOGE's “deferred resignation program,” an incentive to reduce the number of people on the payroll. The former staffer told PW that “the remaining staff seem cautiously optimistic, with the grants made at the end of the fiscal year, along with the permanent injunction.”

Meanwhile, parties interested in applying for competitive IMLS grants are awaiting updates. One current grantee, who asked not to be identified, reported that the agency hopes to release “new notice of funding opportunities (NOFOs) in January under an accelerated, single-phase timeline” for fiscal year 2026, but this is not yet confirmed.

A welcome change

For now, library associations and grantees can cheer the restored funding, while acknowledging the damage done.

“We’re very happy to see the administration complying with the judge’s ruling in the Rhode Island lawsuit,” John Chrastka, executive director of advocacy group EveryLibrary, told PW. “It is so important for the integrity of libraries, archives, and museums that IMLS can fulfill its congressional mandate and fund these grants. We hope that this means a return to stability and normalcy for this critical federal agency.”

Chrastka added, “We should credit the state AGs who took that action for their state libraries. It would never have happened without their courage.”

In a statement, American Library Association president Sam Helmick called the result “a massive win for libraries” and their patrons. “We are breathing a sigh of relief, but the fight is not finished,” Helmick said. “The administration can appeal court decisions. Congress can choose to not fund IMLS in future years. ALA calls on everyone who values libraries to remind their Congress members and elected officials at every level why America’s libraries deserve more, not fewer resources.”

ALA and the American Federation of State, County, and Municipal Employees are still awaiting closure in their own lawsuit to prevent the gutting of IMLS, ALA v. Sonderling. That case in the District Court of the District of Columbia is pending and is not related to the outcome in Rhode Island.

At the Urban Libraries Council, a spokesperson confirmed that all ULC members and allied organizations had their funding reinstated, and that ULC’s Safe Routes to Libraries initiative, modeled on the Safe Routes to School transportation program, will be able to proceed. ULC president and CEO Brooks Rainwater welcomed the positive news for “libraries, museums, and the groups that work every day to support them. We’re relieved that these institutions will once again have the essential support they need to work in their communities. Though the ruling may still face appeal, we remain hopeful and steadfast in our support of IMLS.”

Andrew Pace, executive director of the Association of Research Libraries, said his organization sprang into action upon receiving the IMLS go-ahead. “We’ve been scrambling for what to do next,” he said, expressing “concern but also praise for IMLS staff” who will process the latest changes.

ARL had three IMLS grants terminated, and one grant-funded employee lost their job, Pace said. Two out of the three ARL programs were able to continue despite the gap in IMLS funding, thanks to other providers who stepped in to help. Futurescape Libraries AI funding allowed ARL research on one project to proceed, while Johns Hopkins University budgeted for the other. A third program, a Strategies Institute professional development cohort, was shuttered.

“We asked about expenses incurred during the cancellation period, and we were told we can be reimbursed,” Pace added. “We immediately did a drawdown on two of the grants, although they haven’t been approved yet.”

Banks, of CoSA, also referenced the challenges of IMLS's reimbursement method. IMLS, like many federal granting agencies, only reimburses grantees for money they’ve already spent, and some institutions closed projects and let personnel go when they lost IMLS grant support. “Without the guarantee of reimbursement, small nonprofits simply could not carry the project expenses,” Banks said. “I’ll be interested to see if the IMLS produces a report on the percentage of project funds returned.”

Similarly, ARL's Pace isn’t quite certain IMLS is out of the woods. “The [Rhode Island] decision can still be appealed,” he said. “Given the capricious nature of this administration, I’m not 100% sure the grants won’t be cancelled again.” As ARL applies for extensions and reimbursements, Pace said he'll be considering, “What’s the risk? What’s the financial exposure going forward?”