The Indiana State Library (ISL) and the Library of Michigan (LM) provide critical funding from federal and state sources that power infrastructure supporting the work of hundreds of libraries. The Indiana Library Federation (ILF), the Michigan Library Association (MLA), and others have been advocating for support for ISL and LM. Both states’ legislatures have made choices in their fiscal year (FY) 2026 budget processes that have or may put state and local libraries and their programs at major risk.
There are hopeful signs for federal support for state libraries for the next year, though things still feel tenuous and there are huge questions about what happens after federal FY2025 and the state libraries’ FY2026. After the Institute of Museum and Library Services (IMLS) placed most staff members on administrative leave on March 14, Judge John G. McConnell issued a preliminary injunction on May 13 that prompted IMLS to return at least some staff to work. While it is unclear to many exactly how many IMLS staff have returned, ISL and LM have each heard from IMLS that they should expect to receive federal FY2025 IMLS Grants to States funds (LM’s amount is smaller than their FY2024 amount).
ISL and LM will use federal FY2025 dollars in their respective FYs 2026 (July 1-June 30 for ISL and October 1-September 30 for LM), and I anticipate that each will communicate how they will use their federal funds sometime later this summer. Libraries have been asking the state libraries and MCLS for more information about what to expect, and the state libraries have been working hard to plan and make decisions through major uncertainty.
At the state level, the state of Indiana cut ISL’s FY2026 budget by over 30%, prompting ISL to lay off 16 staff in June. In addition, new Indiana tax law reduces property tax funding for public libraries by eight figures beginning in 2026. While the Michigan State Senate’s FY2026 budget recommendation includes a $900,000 increase to state aid for public libraries, the Michigan State House FY2026 budget does not, and eliminates LM’s $5.6M IMLS Grants to States allocation. LM cannot use its federal funding without authorization from the Michigan legislature.
As Congress and the Michigan legislature continue through their difficult FY2026 budget discussions as of the time of this writing, many in the library community are under a great deal of stress about current and potential changes we’ll all face. While so much is unclear, I urge you to watch ILF’s and MLA’s websites for advocacy updates and helpful information on how you can help make the case to support funding for state and local libraries however possible.
As always, I also encourage you to reach out to our staff at MCLS with any questions you may have about how we may be able to help you maintain access to the critical information resources your communities rely on. Like the ISL and LM staff, MCLS’s staff also continue working hard to support libraries in these challenging times. Contact me anytime at garrisons@mcls.org with any questions or requests you may have.
