Trump Handed Another Federal Court Loss in IMLS Lawsuit

In March 2025, the Institute of Museum and Library Services (IMLS) was gutted by the Trump administration. Two different lawsuits emerged as a result. The first came from a coalition of 21 state attorneys general against Trump (Rhode Island vs. Trump). The second came from the American Library Association and the American Federation of State, County and Municipal Employees against the new IMLS Acting Director Keith Sonderling (ALA vs. Sonderling).

Today, the First Circuit Court denied the Trump administration a stay pending their appeal of the District Court’s preliminary injunction. The Court noted throughout their decision that the defendants did not provide sufficient evidence that they weren’t creating harm or overstepping Constitutionality in implementing Trump’s Executive Order targeting the IMLS. What this means is that while the Trump administration awaits decision on their appeal from the lower court, they are unable to continue dismantling the IMLS. They must continue to follow the parameters of the preliminary injunction as outlined by the District Court.

District Court Judge John J. McConnell granted the plaintiffs a preliminary injunction in mid-May. It stipulated that the Trump administration undo all of the damage wrought to the IMLS so far, including calling back all employees, reinstating grants, and halting future dismembering.

While this is another win for the future of the IMLS, it comes with a note of caution. Numerous lawsuits have pushed through the judicial system following the dismantling of agencies through presidential executive orders this year. When the Trump administration has not found favor in either the District or Circuit Court, they’ve appealed to the Supreme Court. There, the administration has been offered those stays pending appeal.

It’s not certain this will happen for this case, but it’s also not out of the question.

Of course, if the IMLS is defunded as outlined in Trump’s Fiscal Year 2026 budget, the outcome of this case and the ALA/AFSCME case will be moot. The good news is that as of writing, both the House and Senate have funded the agency. It’s now a waiting game as the bill works its way through Congress with a September 30 deadline.

A full timeline of the dismantling of the Institute of Museum and Library Services, as well as the impact of the agency’s gutting on state and local libraries and museums, is available here.