The Nonpartisan Government Accountability Agency (GAO) issued a decision on Monday that found that the Trump administration’s withholding of funds from the Institute of Museum and Library Services (IMLS) that Congress granted was in violation of the law.
In March, President Trump signed an executive order to “continue to reduce federal bureaucracy” that calls for “eliminating IML to the maximum extent consistent with applicable law” within seven days. The order follows another order that reduces seven federal agencies, including IML.
The agency was responsible for allocating federal funds to museums and libraries in the United States, and then contaminated by the Department of Government Efficiency (DOGE) in April, with all 75 of its employees on leave by acting director Keith Sonderling.
The IML legally needs to support the library and report important issues to Congress. However, after the president’s instructions, the GAO was part of Congress’ monitoring of federal spending, found that the IMLS “stop performing” and retained funds designed to support its goals.
It also determined that Trump’s executive order violated the 1974 Water Storage Control Act (ICA) because he was unable to direct the IML to withhold funds previously allocated by Congress, including cuts to cut plans backed by federal funds and failure to operate the agency as originally intended.
GAO attempted to contact IML and confirm withholding, but was unable to contact the agency. Therefore, the publicly available “evidence shows that IML seized funds for obligations and expenditures, and because the obligation burden of IMLS and the administration is reasonable, we concluded that IMLS violated ICA by deducting funds for obligations and expenditures, as well as funds for which there is no responsibility to defend.
This is not the first time this year that the GAO has raised questions with the Trump administration, and has conducted more than 30 investigations into Trump’s spending. In late May, it announced that the first findings of the government had violated the law as part of a $5 billion plan to expand electric vehicle charging stations. However, the government denied the allegations.
Mark R. Paoletta, general counsel for the White House Office of Management and Budget[s] Agency faithfully enforces the law and the president’s priorities. ” New York Times.
It is unclear whether the GAO will sue the government for refusing to release funds from Congress.
Earlier this month, a federal judge ruled not to prevent the Trump administration from continuing to cut the Institute of Museum and Library Services (IMLS). If the Trump administration’s proposed fiscal budget for 2026 is approved by Congress, IML will also face the possibility of a federal refund, allocating only $6 million, which will be used to shut down the agency and close in early 2026.
