Federal Changes Impacting Grant Programs for Michigan Libraries

Federal budget uncertainties, shifting priorities, and policy changes are causing significant changes and delays in grant programs and funding processes for Michigan libraries and cultural organizations. Updates from the Library of Michigan, Michigan Humanities, and the Michigan Arts and Culture Council highlight adjustments to grant cycles, compliance requirements, and funding priorities. These changes may impact future opportunities for libraries and their partners. We will continue to monitor and share updates on these programs. Below, we provide an overview of the latest developments to keep you informed and prepared. 

Library of Michigan (and the Institute for Museum and Library Services – IMLS)

The Library of Michigan is continuing the hiatus for the Public Library Services grant program through 2025 and delaying the application and grant period for the Improving Access to Information 2025/2026 program. When there is more information on the status of LSTA funding for fiscal year 2026, the Library of Michigan will update the status of the Improving Access to Information grant program. 

Michigan Humanities (and the National Endowment for the Humanities – NEH)

Due to the delay in the approval of the fiscal year 2025 federal budget, and the uncertainty of the amount of funding that will be appropriated to the National Endowment for the Humanities and the Office of State and Federal Partnerships, it has become necessary to make some procedural changes to the timing of grant rounds to ensure organizational consistency at Michigan Humanities. To this end, all grant rounds will be announced after the approval of each new fiscal year’s federal budget. This allows for transparent and accurate information to be released to partners regarding funding availability. Within 30 days of federal budget approval, funding windows and application guidelines will be released. This will be our process for the foreseeable future. Please note: the Arts and Humanities Touring Grant program is not currently affected by these changes. As a collaboration between Michigan Humanities and the Michigan Arts and Culture Council, it utilizes funding from the state of Michigan.

Michigan Arts and Culture Council (and the National Endowment for the Arts – NEA)

Many libraries also receive grant dollars from the Michigan Arts and Culture Council. While the majority of the funds that support arts and cultural organizations come from the state general fund, approximately 300 organizations that receive operational awards have federal dollars attached from the National Endowment for the Arts. There is currently no impact for FY25 grant recipients as the funds have already been expended, but changes in FY26 are likely. Of note from the National Endowment for the Arts, the Assurance of Compliance section that each applicant must sign off on if receiving federal funds has been updated and states that the applicants will comply with all applicable Executive Orders and calls out specifically that applicants will not operate any programs promoting “diversity, equity and inclusion” (Trump’s administration has referred to DEI initiatives as "illegal and immoral discrimination programs") that violate any applicable Federal anti-discrimination laws in accordance with Executive Order 14173, nor promote gender ideology, pursuant to Executive Order No. 14168. The NEA has altered its 2026 grant guidelines to prioritize projects that honor the upcoming 250th anniversary of the signing of the Declaration of Independence. The NEA has also eliminated the Challenge America grant, which awarded projects that “extend the reach of the arts to underserved groups/communities” by giving $10,000 to small organizations that could allocate matching funds (about $1M each year to Michigan-based organizations.)