Federal funding uncertainty threatens core services at Vermont Department of Libraries

Catherine Delano, state librarian and commissioner of the Vermont Department of Libraries, told the House Education Committee on May 20, 2025, that uncertainty over federal Institute of Museum and Library Services funding is putting core statewide library services at risk.

Delano said the department typically receives about $1.24 million a year through the IMLS Grants to States program — roughly one-third of the department’s budget — and that the funds support electronic databases, the interlibrary loan and courier system, continuing education for library staff and several statewide programs. "The funds that we receive annually through the Institute of Museum of Library Services, Library Services Technology Act Grants to States program, make up roughly 1 third of the department's budget," Delano said.

That funding has been in flux since an executive order and subsequent agency actions in March led to staff furloughs at IMLS and litigation. Delano said she has received a partial award for the current fiscal year and that a court filing by the IMLS acting director indicated a plan to release the full allotment, but she cautioned the situation remains unsettled and could change if Congress or the administration rescinds allocations. "We have received notice already that we had been granted a partial award for half of the money," Delano said. "The statement that the interim director filed with the courts does say that we will be getting our funding this year."

Delano outlined how the IMLS funds are used: the largest shares go to electronic information resources and the interlibrary loan and courier program that brings materials to Vermonters from other states. She said those databases and reference services are relied upon by students, libraries and residents who cannot otherwise afford subscriptions. "The databases in that environment are really important, and the reference services that are provided by librarians are really important," Delano said.

She warned that reductions would fall hardest on small and rural libraries, which lack budget flexibility to replace state-supported services. Delano gave program details: the department's total governor-recommended budget request is $3.9 million, with roughly $2.37 million expected from the state general fund; federal IMLS support accounts for about 36% of the department's staff funding and the department has 18 staff. She also said 228 libraries participate in the courier system that reduces costs for interlibrary loan.

Committee members asked about timing and comparability with other federal grants, and Delano said the department had not seen the same liquidity problems with recent Treasury ARPA or HUD awards that were already encumbered for capital projects. She noted that some states temporarily lost IMLS funding in 2024 but later had awards restored, and that litigation and FOIA requests continue around IMLS internal documents and the agency’s response to an executive order.

Delano summarized the department’s options if funding is cut: prioritize statutorily required services, reduce collections or program offerings and consider personnel impacts only as a last resort. "If the funding were cut, then I'd have to work with my team to identify to what extent we could maintain services that we're required to by statute," she said.

The committee did not take formal action during the update. Delano said she would return with further updates if the federal situation changed.