New York Attorney General Letitia James leads multistate coalition in lawsuit to block Trump administration from dismantling key agencies supporting libraries, museums, and minority-owned businesses

New York – New York Attorney General Letitia James has initiated a lawsuit against the Trump administration, aimed at halting the disbandment of three crucial federal agencies that support public libraries, museums, and minority-owned businesses across the United States.

This legal action, which James co-leads with the attorneys general of Rhode Island and Hawaii, represents a united effort by a coalition of 20 states to counter what they view as an unwarranted executive overreach that threatens vital community resources.

The controversy stems from an Executive Order issued by the Trump administration in March, targeting the Institute of Museum and Library Services (IMLS), the Minority Business Development Agency (MBDA), and the Federal Mediation and Conciliation Service (FMCS).

These agencies are instrumental in distributing hundreds of millions of dollars in federal aid to support a variety of programs nationwide. According to the coalition, this move not only undermines the legislative intent of Congress but also jeopardizes essential services that are crucial to underserved communities.

The Institute of Museum and Library Services, which has had almost its entire staff placed on administrative leave following the order, is particularly noted for its role in enhancing educational opportunities through libraries and museums. In 2024 alone, IMLS allocated $180 million to libraries across the country, with over $8 million benefiting New York. These funds have been pivotal in supporting literacy programs, providing professional training to library staff, and enhancing internet access for public libraries, which in turn support two-thirds of the state library workforce.

Similarly, the MBDA has faced drastic reductions in personnel, decreasing from 40 staff members to merely five, crippling its ability to issue new grants that aid minority-owned businesses. The FMCS, which facilitates the resolution of labor disputes, has also seen severe cutbacks, with staff numbers reduced from about 200 to less than 15, significantly hampering its operations.

The lawsuit argues that the Executive Order violates the U.S. Constitution and the Administrative Procedure Act by disregarding the established legal frameworks that govern federal spending. The attorneys general maintain that the president cannot unilaterally override Congressional mandates on how federal funds should be allocated and spent.

Support for the lawsuit extends beyond the legal arguments, touching on the broader impacts of these potential agency closures. New York State Librarian Lauren Moore highlighted the direct consequences for New Yorkers, emphasizing that the IMLS not only supports a substantial portion of the state’s library workforce but also sustains essential programs that serve local communities. Moore describes libraries as more than just physical spaces; they are centers of learning and community engagement that play a crucial role in fostering cultural and educational growth.

This legal challenge is part of a broader series of actions taken by Attorney General James to safeguard public services against what her office perceives as illegal actions by the Trump administration. These efforts include defending health care funding for 9/11 survivors and fighting against cuts to education and health services that support local communities.

The case is currently being managed by Assistant Attorneys General Abigail Katowitz-Liu and Sean Bunny, along with Special Counsel for Federal Initiatives Rabia Muqaddam, under the supervision of First Deputy Attorney General Jennifer Levy. The outcome of this lawsuit could set a significant precedent regarding the scope of executive power and the protection of federal agencies that deliver critical services to the American public.