Court rules it lacks jurisdiction over challenge to defunding of IMLS grants

By yourNEWS Media Newsroom

A federal judge has ruled that the Trump administration may proceed with dismantling the Institute of Museum and Library Services (IMLS), rejecting a bid to block the plan on jurisdictional grounds.

In a June 6 ruling, U.S. District Judge Richard Leon said his court lacked the authority to enforce contractual obligations against the government, pointing instead to the Court of Federal Claims as the appropriate venue for such cases.

Though Leon previously paused the administration’s efforts, he reversed course, citing the U.S. Supreme Court’s April decision that similarly redirected challenges to grant suspensions away from district courts. That case involved over $600 million in teacher training grants suspended by the Trump administration on grounds that they promoted “diversity, equity, and inclusion” in violation of federal anti-discrimination laws.

“While this Court laments the Executive Branch’s efforts to cut off this lifeline for libraries and museums,” Leon wrote, he found that the lawsuit—brought by the American Library Association (ALA) and the American Federation of State, County and Municipal Employees—must proceed in a court that handles contractual claims against the federal government. The judge noted that the plaintiffs were seeking the restoration of grant funds, making it a matter of implied contract.

The case stems from a March 14 executive order by President Donald Trump identifying IMLS as one of seven federal agencies to be eliminated “to the maximum extent” permitted by law.

Following the order, Deputy Secretary of Labor Keith Sonderling was appointed acting director of IMLS. Under his supervision, 63 of the agency’s 75 employees were dismissed, and auditors from the Department of Government Efficiency (DOGE) were brought in to oversee the shutdown.

IMLS, which was established by Congress in 1996, currently oversees more than 650 active grant awards totaling over $450 million. In 2024 alone, it distributed $266.7 million in grants to libraries and museums across the United States. The agency also runs the Public Libraries Survey, which collects data from 9,000 public libraries and 17,000 outlets nationwide.

ALA President Cindy Hohl expressed disappointment in the court’s decision. “The extent to which some libraries have already cancelled services and programming—and even lost staff in some cases—is evidence of the importance of IMLS,” Hohl said. “ALA will not rest until libraries in every state receive the funding promised and IMLS is back in full force to meet the information needs of all Americans.”

The lawsuit and executive action highlight the Trump administration’s continued effort to rein in federal spending and dismantle bureaucracies viewed as promoting progressive social agendas.