Federal cuts threaten vital library and museum services in rural America

Madeline Faber.
Recent federal actions have placed a critical source of funding for public libraries and museums in jeopardy. Within weeks following an executive order from President Trump, the federal Institute of Museum and Library Services (IMLS) staff was placed on administrative leave and grant processing was suspended, which has put rural communities across the country, including those in Nebraska and South Dakota, at risk of losing access to essential library services.
The timing was especially harsh for South Dakota, where state lawmakers had just finished a legislative session that narrowly preserved most of the $1.3 million in state funding needed to keep federal matching grants flowing. With IMLS operations frozen, even that hard-won effort may no longer be enough.
In 2024, IMLS awarded $266.7 million in grants to museums, libraries, and archives nationwide – just 0.003% of the federal budget, or about 75 cents per American. Nebraska received over $2 million, and South Dakota received $1.4 million, with most of the funding flowing through the Grants to States program. This program helps state library agencies support local public libraries with technology upgrades, literacy programs, increased rural access to services, and staff development. In Nebraska, the funds help the Library Commission promote lifelong learning, provide training to library staff, and market library services across the state. In South Dakota, the funds strengthen local libraries, expand public access to materials and digital resources, support lifelong learning, and build partnerships with schools and other agencies to enhance community services.
Federal grants are often the backbone of rural library services. Without IMLS support, South Dakota has already seen its interlibrary loan courier service end, forcing libraries to switch to costlier USPS shipments. The state risks losing access to 58 digital databases used over 1.5 million times last year and jeopardizing services for more than 2,000 residents with visual or physical disabilities. The statewide catalog system, which enables book sharing across hundreds of small libraries, could also go offline, cutting off rural patrons from key educational and cultural resources.
The impact of the federal cuts extends beyond South Dakota. Across the country, libraries have reduced access to digital platforms like Hoopla, and national projects such as the Autistic Voices Oral History Project have been paused. In Mississippi, libraries have been forced to end access to popular e-book and audiobook services. Public libraries are not just collections of books – they offer free Wi-Fi, computer access, children’s programs, job application help, tax preparation assistance, and mobile services like bookmobiles.
Library funding structures vary widely. In Nebraska, most public libraries are funded by municipalities, though some rely on county support or interlocal agreements. For example, Hastings Public Library draws funding from both the city and Adams County, allowing all county residents access, while Grand Island’s city-funded model requires rural residents to pay for access. Without federal dollars to bridge these gaps, disparities in access will widen.
Even after South Dakota secured enough state money to remain eligible for federal funds, the Trump administration’s freeze puts that work at risk. The American Federation of Government Employees has reported that all processing of all 2025 grant applications has stopped, and even previously awarded grants are now in jeopardy.
If left unchallenged, these harmful federal cuts will erode the ability of libraries to serve the public, especially in rural, low-income, and underserved areas. Many libraries may be forced to reduce hours, lay off staff, or begin charging fees for services that have long been free. Public libraries and museums are essential civic infrastructure. They connect people to opportunity, help bridge the digital divide, and uphold the promise of lifelong learning in every community. Defunding them, or disabling the agencies that support them, directly harms the communities that rely on them the most.
Madeline Faber is a policy associate with the Center for Rural Affairs.