Vermont libraries warn federal funding uncertainty could force cuts to services
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Summary
The Department of Libraries told the House Appropriations Committee on Feb. 11 that delayed or reduced federal grants — chiefly from the Institute of Museum and Library Services — could force the department to scale back interlibrary loan, courier grants, digital collections and capital-project reimbursements unless state resources fill gaps.
The Vermont Department of Libraries told the House Appropriations Committee on Feb. 11, 2025, that uncertainty and delays in federal grants, particularly from the Institute of Museum and Library Services (IMLS), could force the department to reconfigure services that depend heavily on federal funding.
Commissioner Catherine Delnao told the committee the department’s budget relies on a mix of state and federal funds, and that IMLS grants make up roughly one-third of the department’s budget. “A third of our budget is IMLS funding,” Delnao said.
The department provides statewide services used by Vermont residents and by all public, academic and school libraries in the state. Those services include access to the Vermont Online Library and other shared online resources, a statewide interlibrary loan system, a statewide courier that makes at least weekly stops to 141 participating libraries, the Palace Project app for ebooks and eaudiobooks, and the ABLE Library service that provides materials for Vermonters who are blind or have print disabilities.
Why it matters: Delnao told the committee that if federal funds are reduced or delayed, costs for services now provided at scale would shift to local libraries, which could have to negotiate individual contracts and absorb higher costs. She said the department would likely have to “dramatically reconfigure” its services if federal IMLS funding were cut.
Key figures and programs mentioned during the presentation: - Funding mix: Delnao said general state funds account for about 61% of the Department of Libraries’ budget and federal funds (chiefly IMLS grants) account for about 33%. - Interlibrary loan: nearly 67,000 items moved statewide and interstate last year; Vermont is a net borrower of physical materials. - Courier and grants: the department administers a statewide courier and provides grants that offset roughly half of local libraries’ participation costs; Delnao said that grant support is in the “realm of about $680 per library” for participating libraries. - Staffing and consulting: the department supports 16 full-time staff and provides statutory consultation services required by Act 150 to public libraries and their trustees; there are 187 public libraries in Vermont and the department runs continuing-education programs for library directors. - Capital projects and federal awards: the department has already requested checks for a bit over $2,000,000 for U.S. Department of the Treasury capital projects; Delnao said about $13,500,000 remains to spend (excluding administrative costs). The department also received an award letter for a $10,000,000 congressionally directed spending grant administered by the U.S. Department of Housing and Urban Development (HUD) but has not yet selected subrecipient libraries. - Other programs: the ABLE Library (National Library Service program) and a $90,000 annual grant to Vermont Law School’s Community Legal Information Center were noted as important services the department administers.
Delnao described operational steps the department takes to manage federal grant timing: the department uses a two-year period of performance for its IMLS allocation and often spends one grant allocation within a single state fiscal year to simplify planning. She said IMLS award letters and exact allotments have been delayed by the federal continuing resolution, and that while the programs that had been frozen are currently moving forward, the department is monitoring risks.
Committee members asked for clarification about fiscal-year timing and whether ongoing or in-progress projects could be affected. Delnao said two Treasury-funded library capital projects have been fully completed and are in the process of receiving reimbursement checks, while 12 other Treasury projects still in progress could be impacted if federal funds were withheld. On the HUD appropriation, she said: “We have been granted the money. We do have an award letter,” but subrecipient selection and state approvals remain to be completed.
Delnao also highlighted the practical consequences of cuts: reduced statewide digital licenses and interlibrary loan access would shift costs to municipal and incorporated public libraries, potentially fragmenting contracts and access.
No formal committee action or vote occurred during the presentation. Committee members thanked the department for the overview and noted they would use the information for planning while the federal budget remains unsettled.
The department encouraged committee members to review page 15 of its budget packet for a high-level summary and said staff would follow up with detailed questions from members.
Ending: The Department of Libraries will monitor IMLS and other federal funding developments and said it will return to the committee with updated information as federal award letters and reimbursements are finalized.
