ICfL Budget Update

Funding for Institute of Museum and Library Services (IMLS) and many other agencies wasn't part of the budget bill passed by Congress and signed into law by President Trump on July 4, 2025. Congress will be appropriating funds for many federal agencies through committee work and a larger vote in the coming months. President Trump's FY26 budget only includes $6 million to conduct "an orderly closeout of IMLS beginning in 2026." The Labor, Health and Human Services, Education and Related Agencies Appropriation Committee is the committee that hears about IMLS funds. Idaho Rep. Simpson serves on this committee (https://appropriations.house.gov/subcommittees/labor-health-and-human-services-education-and-related-agencies-118th-congress).

The ICfL will soon start spending the FY25 Library Services and Technology Act (LSTA) funding which remained at the same level as the agency received last year. If we manage those funds carefully, they should carry us through August or September 2026. There remains some concern that these funds could be rescinded mid-year. The current public broadcasting / foreign aid rescission bill is a test case that could affect other federal funds.

We are closely monitoring developments at the federal level and will continue to provide information about the importance of LSTA in supporting Idaho libraries and the communities they serve.

State general funds also support the ICfL. General Fund revenue collections are behind original projections, and all state agencies have been asked to only present a maintenance budget for FY27. As revenue projections for FY 2026 and FY 2027 come in, agencies directors have been asked to "prepare to manage budgets and maintain conservative spending." All state agencies have been asked to prepare 2%, 4%, and 6% budget holdback scenarios for the current fiscal year as well as for next year's fiscal year. There is currently intent language attached to the ICfL's budget bill that does not allow us to transfer between funding sources (i.e. from federal funds to state general funds) unless expressly approved by the legislature which could create some additional challenges for the agency.

The ICfL strives to keep the library community informed about these budget challenges as new developments occur. If you have any questions about the budget, please contact me any time.