The funding crisis facing America’s public libraries

Seventeen thousand public libraries across the United States receive over 1.3 billion visits annually. They’re hubs for learning, digital access, job help, and recreation for millions of Americans. Studies show that libraries improve civic life, lower crime rates, act as retail anchors, and provide a return on investment of around $5 in services for every tax dollar spent on them. Americans visit libraries over 1.3 billion times annually, significantly more than the combined attendance of MLB, NFL, NBA, NHL, and NASCAR games. Yet, libraries face mounting funding pressures that threaten their ability to meet rising demand.

Government funding as the backbone of U.S. public libraries is now under threat

Many people may not understand how libraries are funded in the United States. Nearly 90% of funding comes from local government through property taxes, municipal budgets, or county levies, typically covering core operations like staffing, collections, and facilities. State governments supplement this with direct aid or targeted grants, often administered by state library agencies. At the federal level, the Institute of Museum and Library Services (IMLS) distributes funds primarily through the Grants to States program, which supports technology, literacy, and access initiatives. In total, government funding comprises around 94-96%, and only 4-6% comes from other sources such as fines, fees, and philanthropy.

IMLS, the largest grantmaker to libraries, is being dismantled by the current administration. The administration first attempted to defund IMLS through an executive order but was blocked in court. Then the Department of Government Efficiency cut staff and funding, and the president’s FY 2026 budget request eliminates all funding for IMLS.

IMLS cuts would hit rural, small-town, and Native community libraries the hardest

Eliminating IMLS would have an immediate and damaging effect on public libraries across the country, particularly in small towns and rural areas. Without IMLS funding, many libraries would be forced to scale back or cut programs that provide free internet access, technology lending, and digital literacy training. Libraries in Native American and Indigenous communities, which often lack strong local tax bases, would be hit hardest and lose critical support for everything from bookmobiles to after-school programs.

From book bans to funding cuts, public libraries face growing political pressure

Hundreds of communities face book ban campaigns that destabilize library funding and erode the public trust libraries depend on. Voter support is critical, given that nearly 90% of library funding depends on decisions made by local voters or elected legislators. In some communities, campaigns to remove certain books have led to library ballot initiatives to increase taxes to benefit libraries —which typically passed with strong majorities in the past—being voted down. When such a ballot initiative fails, the result can be immediate cuts to staff, hours, and services. Even just the threat of defunding could force library boards and administrators to divert time and resources from service delivery to political defense.

Book bans can also strain relationships with elected officials who control municipal or county library budgets. In some communities legislators have proposed or enacted measures to withhold funding from libraries that don’t comply with restrictive content policies, pushing some toward self-censorship.

Similar cuts to state funding also threaten public libraries, especially in small and rural communities that depend on state aid to finance broadband access, bulk e-resource subscriptions, staff training, and shared services like interlibrary loans. Without that lifeline, libraries may be forced to cut back hours, reduce early literacy programs or job search workshops, and delay needed technology upgrades. Many libraries are left scrambling to fill gaps via local taxes or grants—options that aren’t always available or sustainable.

Philanthropy can support public libraries’ advocacy efforts

Here, philanthropic funding from foundations, corporations, and individual donors can help libraries sustain core services that might otherwise face cuts.

For example, the library industry is almost entirely dependent on philanthropy to fund the kind of advocacy work that would help sustain government funding. Libraries and library workers themselves are often unable to participate in advocacy campaigns, due to laws regarding the use of tax dollars for political initiatives. For instance, a library cannot legally ask voters to vote yes for a library measure or lobby the state or federal government to secure IMLS or state funding sources. While many support professional associations, and consortiums can conduct more effective advocacy campaigns, as 501(c)(3)s they also face restrictions on direct advocacy work.

One of the boldest strategies would be to increase philanthropic support for citizen- and community-led library support organizations that can legally conduct broader advocacy and political activities to rebuild voter support and ensure success at the ballot box, where 90% of library funding originates.  Philanthropic partners could bolster sustainability by underwriting advocacy and organizing efforts, not just one-time projects. A modest investment in a library ballot initiative could help secure significant increases in stable local funding—with the incalculable ROI of library services year after year.

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