REPORT TO BOARD OF LIBRARY TRUSTEES
SUBJECT
Title
Informational Update on Impacts of Federal Funding Changes to Library and Discussion and Possible Action on Support Letter to Local Congressional Representatives
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
The Institute for Museum and Library Services (IMLS), the nation’s only federal agency for American libraries, received a federal executive order on March 14, 2025 to reduce services to the lowest levels required by statutory law. IMLS administers and distributes Congressionally approved funds via federal grants to states, discretionary grants to individual library entities and archives, and funding support for databases and e-resources to support libraries in California and nationwide. The Santa Clara City Library has received inquiries from the Board of Library Trustees seeking to understand how this change will impact services at the Library, and at libraries across the state and country.
DISCUSSION
Nationwide, the reduction of funding for IMLS puts in jeopardy nearly $200 million in grants to states, approximately $15 million of which is earmarked for California. This is anticipated to result in a loss or reduction of library services dependent on this funding across the country, including:
• Early literacy development and grade-level reading programs
• Summer reading programs for kids
• High-speed internet access
• Employment assistance for job seekers
• Braille and talking books for people with visual impairments
• Homework and research resources for students and faculty
The Santa Clara City Library does not receive direct federal funding from grants or from IMLS, and does not expect an interruption of already awarded grants or other funding sources.
However, as these orders take effect, there will be an impact to sources of revenue and discounted services via memberships and partnerships which do support the Library. As a result, it is anticipated that these changes will ripple down to impact services and resources.
One likely impact will be in federally-sourced support to reduce costs for various electronic information resources. Federal dollars, for example, support group purchasing for shared digital newspaper subscriptions and e-books, and it remains to be seen which services will be cut. The Library currently receives support from the California State Library, which provides multiple databases and e-resources at low- to no-cost to our and other libraries. Federal funding cuts will impact their ability to offer these resources. As these changes trickle down and take effect, the Santa Clara City Library as well as libraries nationwide are facing the need to analyze the cost impacts of reduced state and partnership support for such resources. Without replacement sources of funding, it is likely that the Library will see a reduction in the databases and e-resources that can be provided.
In terms of grants, the Library does expect an impact in regularly leveraged grants. IMLS distributes most federal funds through the “Grants to States” program called the Library Services and Technology Act (LSTA), to support state and local libraries. The State of California received $15.9 million from IMLS funding in FY 2023-24, along with other grants and resources. This funding is used in California to support programs and services where library funding has gaps or is stretched thin, such as summer learning programs for youth, career development and support for job seekers, braille and audiobooks for the visually impaired, and internet access in rural communities. The Santa Clara City Library has received grant support from the California State Library regularly, particularly from the California Library Literacy Services grants supporting Adult and Family Literacy, and English as a Second Language services. In FY 2023-24, the Library received $111,012 to support Adult and Family Literacy, and this funding is critical to the provision of literacy support to the community. For English as a Second Language services, the California State Library’s funding for grant support runs out in 2026, and is not expected to renew. For the FY 2024-25 and 2025-26, the Library received $126,327 in English as a Second Language grants, from LSTA funding. With no additional grant funding available from the California State Library, impacted by federal cuts, this critical service is now at risk.
California State Library grants have supported programming at Santa Clara City Library as well, such as the Lunch at the Library grant, which the Youth Services team uses to implement enrichment programs at summer school sites focusing on themes such as storytelling, STEAM, and literacy. In FY 2023-24, the Library received $4,123 for the Lunch at the Library grant, via LSTA funding from the California State Library. In FY 2023-24 the Library received $26,785 from the Inspiration Grant, also supported by LSTA funding, to support outreach efforts at Montague Park, an underserved, high-need neighborhood in Santa Clara.
The Santa Clara City Library also launched a weekly Homework Help Center at Central Park Library with an $89,551 grant from the California State Library spanning FY 2022-24. The Stronger Together: Teens Lead and Learn program supported Grades 2-6 while giving teens a valuable first job experience. Fifty paid teen interns completed 4,650 service hours, earning $67,975 in scholarships. Teen Homework Helpers assisted 35+ students with over 551 assignments, with 12-15 families regularly seeking help.
In summary, the reduction of federal funding for libraries to the lowest levels legally permitted will impact libraries nationwide, including the Santa Clara City Library. These impacts are expected to take the form of reduced California State Library targeted grant opportunities, potentially impacting Read Santa Clara and Youth Services. Should the Board decide to take action in support of federal funding for libraries following discussion on the informational report, it may authorize the formation of a subcommittee to draft a letter to local congressional representatives, illuminating the potential impact of federal funding cuts to the services offered at the Santa Clara City Library, and local libraries around the country.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
There is no fiscal impact related to this report.
PUBLIC CONTACT
Public contact was made by posting the Board agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
1. Note and file informational report on the impacts of federal funding changes to the Library.
2. Authorize up to two Trustees to form a subcommittee to draft a letter in support of local library funding for full consideration of the Board.
Staff
Reviewed by: Sami James, Management Analyst
Approved by: Patty Wong, City Librarian
ATTACHMENTS
1. Save Federal Funding to California Libraries