Following a series of federal and state funding cuts, Indiana museums and libraries stand to lose millions in operations and services. Photo from Indiana State Library.

News Release

INDIANAPOLIS — Indiana libraries and museums face a financial crisis after a series of state and federal budget cuts eliminated or slashed key funding sources in the first half of the year, threatening public access to educational and cultural resources.

In March, Pres. Donald Trump issued an executive order to eliminate seven federal agencies, including the Institute of Museum and Library Services.

The agency’s staff was placed on paid administrative leave weeks later. More than 20 states sued in April to block the move, prompting a federal judge to issue a preliminary injunction in May halting the dissolution.

Julie Wendorf, president of the Indiana Library Federation, said the Indiana State Library receives roughly $3.5 million annually from IMLS, funds that help support statewide programs like INSPIRE, Evergreen Indiana, Info Express and the Indiana Digital Library.

Compounding the issue, Indiana lawmakers passed Senate Enrolled Act 1, which is projected to strip more than $18.6 million from public libraries in 2026 and nearly $24.2 million by 2028, according to the Legislative Services Agency.

House Enrolled Act 1001 added further pressure, slashing the Indiana State Library’s budget by 30% and eliminating funding for specific services such as the state’s library connectivity grant and INSPIRE, described as “Indiana’s Lifelong Learning Library.”

At the federal level, the National Endowment for the Humanities also saw its operations suspended, with staff placed on administrative leave.

In April, NEH pulled funding for programs tied to diversity, equity and inclusion and environmental justice. Indiana Humanities, which supports local museums and programs across the state, expects to lose $800,00 in this fiscal year and $1.3 million in 2026.

The American Council of Learned Societies, the American Historical Association, and the Modern Language Association filed suit in May against the NEH and the Department of Government Efficiency, or DOGE, over the cancellations. Meanwhile, the Mellon Foundation pledged $15 million in emergency support, including $250,000 earmarked for Indiana Humanities.

The Children’s Museum of Indianapolis lost three IMLS grants worth nearly $700,000. Two of the projects, focused on professional development and an exhibit celebrating the museum’s centennial, were nearly complete. The museum is seeking $47,000 in reimbursement.

The Evansville African American Museum is appealing the loss of a $48,000 grant for its COVE program and says a separate $80,000 application has disappeared. Museum curator Tory Schendel-Vyvoda said the museum plans to launch a capital campaign and expand fee-based programming.

The state’s popular Dolly Parton Imagination Library program was also defunded. Previously backed by $6 million, First Lady Maureen Braun launched a private fundraising effort in April to keep the program afloat.

As Indiana’s cultural institutions brace for leaner budgets, advocates warn of broader economic consequences. Charity M. Counts, executive director of the Association of Midwest Museums, cited a 2017 study showing Indiana museums contributed over $800 million to the state economy.