Order Code RL31320
CRS Report for Congress
Received through the CRS Web
Federal Aid to Libraries:
The Library Services and Technology Act
Updated August 8, 2003
Gail McCallion
Specialist in Labor Economics
Domestic Social Policy Division
Congressional Research Service ˜ The Library of Congress

Federal Aid to Libraries:
The Library Services and Technology Act
Summary
The Library Services and Technology Act (LSTA), which consolidated and
replaced the former Library Services and Construction Act (LSCA) and other federal
library assistance legislation, was enacted in 1996. The LSTA is administered by the
Institute of Museum and Library Services (IMLS). The LSTA’s authorization
expired at the end of FY2002; however, funding has not been interrupted. H.R. 13
(Hoekstra), introduced on January 7, 2003, and reported favorably by the House
Committee on Education and the Workforce on February 13, 2003, would reauthorize
Library Services and Technology as subtitle B of the Museum and Library Services
Act of 2003. H.R. 13 was passed by the full House on March 6, 2003. S. 888
(Gregg), introduced on April 11, 2003, and reported favorably by the Senate
Committee on Health, Education, Labor, and Pensions on May 14, 2003, would also
reauthorize the Museum and Library Services Act of 2003. On August 1, 2003, the
Senate incorporated S. 888 into H.R. 13 and passed H.R. 13 in lieu of S. 888 with an
amendment by unanimous consent. This report will be updated in response to
legislative developments.

Contents
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Library Services and Technology Act Funding . . . . . . . . . . . . . . . . . . . . . . . 3
History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Reauthorization Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
108th Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
107th Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
List of Tables
Table 1. FY1997-FY2004 Appropriations for Library Assistance Programs Under
Library Services and Technology Act (LSTA) Programs . . . . . . . . . . . . . . . 4

Federal Aid to Libraries:
The Library Services and Technology Act
Background1
The Library Services and Technology Act (LSTA) was adopted as part of the
Museum and Library Services Act of 1996, which was enacted on September 30,
1996 as part of P.L. 104-208, the Omnibus Consolidated Appropriation Act of 1997.
The bulk of LSTA funding is distributed to states via formula grants. Funding is also
provided for library services for Indians and Native Hawaiians, and for national
leadership projects.
LSTA grants to the states are allocated to state library
administrative agencies (SLAAs), and may be used for two basic purposes:
(a)
developing and improving electronic or other linkages and networks
connecting providers and consumers of library services and resources;
and/or
(b) targeting library services to under served or disadvantaged
populations, such as persons with disabilities, those with limited
literacy skills, or children from poor families.
The LSTA’s authorization expired at the end of FY2002; however, funding has
not been interrupted. For FY1997, $150 million was authorized for the LSTA, while
the authorization for each of FY1998-FY2002 was “such sums as may be necessary.”
Of the total funds appropriated for the LSTA, at least 91.5% must be used for state
grants
, as described above, and 3.75% of LSTA appropriations must be reserved for
national activities.2 The latter may include competitively awarded grants or contracts
for research, demonstrations, preservation, and conversion of materials to digital
form, plus education and training for librarians; these are similar to activities
previously funded under Title II, Part B of the Higher Education Act.
Congressionally directed grants have also been included in this category, and
President Bush’s Librarians for the 21st Century program (described below) is
included under this heading. In addition, 1.75% of appropriations is reserved for
services to Native Americans (including Indian tribes, Alaskan Natives, and Native
Hawaiians), and up to 3% of appropriations may be used for federal administration
of LSTA programs.
1 An earlier, now archived, CRS Report by Wayne Riddle provided much of the material
included in this report.
2 The actual percentage varies due to the addition of congressionally directed grants.

CRS-2
Of the total funding reserved for state grants, each state receives a “flat grant”
of $340,000 ($40,000 in the case of outlying areas3); remaining funds are allocated
on the basis of total population in each state. The federal share of the total costs of
assisted activities is 66% in all cases.4 If there is no year-to-year decline in federal
funding for the LSTA, states must maintain levels of spending for library programs,
or their LSTA grants will be reduced in proportion to the reduction in state funding.
Participating states are required to develop 5-year plans that set goals and
priorities consistent with the purposes of the LSTA (i.e., to enhance information-
sharing networks and target library services to disadvantaged populations). The plans
must provide for independent evaluations of federally assisted library services. States
may establish an advisory council to assist in the development and implementation
of the plan, but they are not required to do so.
A wide variety of types of libraries — public, public school, college or
university, research (if they provide public access to their collections), and (at state
discretion) private libraries — may receive aid under the LSTA, not just the public
and research libraries eligible for aid under the predecessor legislation to the LSTA,
the Library Services and Construction Act (LSCA).5 No more than 4% of each
state’s grant may be used for administration; however, there is no limit on the share
of funds that can be used at the state level to provide services, as opposed to being
allocated to local libraries. The LSTA is intended to provide states with considerable
latitude in the use of funds. LSTA funds are allocated within states on a competitive
basis by the SLAA.
The LSTA is administered by the Institute of Museum and Library Services
(IMLS). The IMLS was created through expansion of the previous Institute of
Museum Services (IMS). The IMLS contains an Office of Museum Services (OMS)
and an Office of Library Services (OLS). The IMLS is under the general aegis of the
National Foundation on the Arts and the Humanities, which also includes the
National Endowment for the Arts (NEA) and the National Endowment for the
3 The share of LSTA funds allocated to the “Freely Associated States” (Palau, the Republic
of Marshall Islands, and the Federated States of Micronesia) under this formula is reserved
and allocated among these areas plus the U.S. Virgin Islands, Guam, American Samoa, and
the Commonwealth of the Northern Mariana Islands, on a competitive basis, via the Pacific
Regional Educational Laboratory in Hawaii.
4 This is essentially the same as the allocation formulas for the previous LSCA Titles I-III
combined. Under the previous LSCA, the federal share varied from 33% to 66%, depending
on each state’s relative personal income per capita.
5 The provisions of the LSTA were modified by the Museum and Library Services Technical
and Conforming Amendments of 1997, P.L. 105-128. The amendments: (a) made “special
libraries” (i.e., libraries other than public, school, college, or research libraries — these are
frequently part of museums, corporations, or government agencies) eligible for aid under the
LSTA; (b) expanded the funds reservation for Native Americans from 1.5% to 1.75%,
adding Native Hawaiians to the eligible recipients of these funds; (c) reduced the maximum
reservation for national programs from 4% to 3.75%; (d) clarified requirements of the LSTA
regarding state maintenance of effort; and (e) authorized cooperative agreements, along with
grants or contracts, under national programs.

CRS-3
Humanities (NEH). Nevertheless, the Institute acts as an independent agency.6 The
IMLS directorship alternates between persons with “special competence” in library
and information services or in museum services; the current IMLS director is Robert
Martin, who includes in his past professional experience service as a Director and
Librarian of the Texas Library and Archives Commission. At all times, an Office of
Library Services within the IMLS is directed by a Deputy Director with a graduate
degree in library science, and expertise in library and information services. The
IMLS is advised by the National Commission on Libraries and Information Science,
which continues under separate authorization.
Library Services and Technology Act Funding
Table 1, below, shows the FY1997-FY2004 appropriations for the LSTA. The
Bush Administration has requested funding of $207.6 million for the agency for
FY2004. The FY2004 proposed budget includes $20 million for an initiative first
funded in FY2003 to train and recruit librarians, provide scholarships, support
distance learning in under served rural areas, and enhance the diversity of librarians
to better serve communities. Beginning in FY2003, the OMS and the OLS were
combined in one appropriation account within the Labor, Health and Human
Services, and Education (L-HHS-ED) Appropriations bill. In the past there had been
two funding streams, one account for OMS within the Department of the Interior
Appropriations, and one for OLS within the L-HHS-ED Appropriations.
History
The federal government has provided direct aid for public libraries since initial
adoption of the Library Services and Construction Act (LSCA) in 1956. The 104th
Congress considered legislation to extend and amend LSCA programs, as well as to
consolidate these programs with separate authorizations of federal aid to elementary
and secondary school and college libraries.
The Library Services and Technology Act consolidated and replaced a
number of programs under Title VII, Subtitle B of the L-HHS-ED Appropriations
Act of 1997 within P.L. 104-208.
6 Several administrative functions, such as accounting, for the IMLS are being carried out
by the NEH, through an interagency agreement.

CRS-4
Table 1. FY1997-FY2004 Appropriations for Library Assistance Programs
Under Library Services and Technology Act (LSTA) Programs
(in 000s)
Program
FY1997
FY1998
FY1999
FY2000
FY2001
FY2002
FY2003a
FY2004b
State Grants (includes interlibrary
cooperation and resource sharing;
112,500
133,901
135,367
138,118
148,939
149,014
150,435
166,419
LSTA Chapter 2)
Library Services for Indians and
Native Hawaiians (LSTA Chapter 3,
2,577
2,561
2,908
2,616
2,940
2,941
3,055
3,225
Section 261)
National Leadership Projects (LSTA
7,500
5,488
9,565
10,455
11,081
11,081
11,009
11,650
Chapter 3, Section 262)
Directed Grants c
na
na
15,435
11,571
39,469
29,524
35,156
0
21st Century Librarians
na
na
na
na
na
na
9,935
20,000
Federal Administration of Library
Programs in the IMLS (LSTA Chapter
na
4,390
2,900
3,491
5,040
5,042
5,663
6,300
1) d
Total, LSTA
136,369
146,340
166,175
166,251
207,469
197,602
215,253
207,594
National Commission on Library and
897
1,000
1,000
1,295
1,495
1,000
1,010
1,000
Information Science
a Numbers are estimates provided by the Institute of Museum and Library Services. Numbers include an across-the-board cut adopted in P.L. 108-7, February 20, 2003.
b Based on the Bush Administration’s FY2004 budget request.
c Directed grants include both library and museum grants.
d Before FY1998, federal administration of library programs was funded through the U.S. Department of Education’s (ED) general departmental management account (specific amounts
for administration of library programs are not available).

CRS-5
These programs included the LSCA, plus library assistance programs authorized by
Title II of the Higher Education Act (HEA) and Title III, Part F, of the Elementary
and Secondary Education Act (ESEA).7
While states have had a large degree of discretion in selecting grantees and
deciding how funds are to be used under both the former LSCA and the current
LSTA, overall state discretion would appear to be increased under the LSTA. At the
same time, some LSCA funds — particularly aid for construction8 under the former
LSCA Title II — were intended for specific purposes that are not authorized under
the LSTA.
The LSTA focuses more thoroughly on relatively new forms of
information sharing and networking, such as the Internet, than previous legislation.
Reauthorization Issues
Issues regarding the reauthorization of the LSTA that are being discussed,
include: the adequacy of minimum state grants and overall authorization levels; the
need for additional funding to provide for evaluations of the LSTA; and new
provisions disallowing grants for projects deemed obscene.
108th Congress. H.R. 13 (Hoekstra), a bill to reauthorize Library Services
within the Museum and Library Services of 2003, was introduced on January 7, 2003,
and was reported favorably by the House Committee on Education and the
Workforce on February 13, 2003. H.R. 13 was passed by the full House on March
6, 2003. This bill includes all the amendments to the LSTA included in H.R. 3784,
introduced in the 107th Congress (discussed below). In addition, some changes have
been added. First, the authorization for Library Services and Museum Services
would be changed to $210 million and $35 million, respectively, for FY2004 and
such sums as may be necessary for 2005 through 2009. Secondly, H.R. 13 includes
new provisions requiring the IMLS Director to establish procedural standards for
reviewing and evaluating grants, including a provision prohibiting the funding of
projects determined to be obscene. New provisions in H.R. 13 also provide a
definition of “obscene” and of the term “determined to be obscene.” Finally, H.R.
13 would increase minimum state allotments for library services to $680,000, if the
7 The LSTA repealed not only the LSCA but also aid to college/university libraries under
HEA Title II, and an unfunded authorization of aid to elementary and secondary school
libraries under ESEA Title III, Part F. This program was added to the ESEA by the
Improving America’s Schools Act of 1994 (P.L. 103-382), but was repealed without ever
being funded. The ESEA contained earlier authorities for aid specifically to school libraries
under Titles II (1965-1974) and IV (1974-1981). Separately, local educational agencies
may, and often do, use portions of their funds under the broad authority of ESEA Title VI,
Innovative Education Program Strategies, to support school library services. In addition,
P.L. 107-110 amends the ESEA to authorize a new program of aid to school libraries, under
ESEA Title I, Part B, Subpart 4. An initial appropriation of $12.5 million has been provided
for FY2002.
8 While it is possible to use LSTA grants for relatively minor construction or remodeling to
accommodate new technologies or increase access by persons with disabilities, the more
basic forms of construction authorized under the former LSCA Title II are not authorized
by the LSTA.

CRS-6
amount appropriated for a year, and available for state allotments, exceeds the
amount of allotments to all states in FY2003.
S. 888 (Gregg), introduced on April 11, 2003, and reported favorably by the
Senate Committee on Health, Education, Labor, and Pensions on May 14, 2003,
would also reauthorize the Museum and Library Services Act of 2003. On August
1, 2003, the Senate incorporated S. 888 into H.R. 13 and passed H.R. 13 in lieu of
S. 888 with an amendment by unanimous consent. Authorization levels for FY2004
contained in the Senate passed bill were reduced from the authorization levels
contained in S. 888 as reported by the Senate Committee on Health, Education,
Labor, and Pensions (from $250 million to $232 million for Library Services; and
from $41.5 to $38.6 million for Museum Services). The Senate passed bill included
the following provisions that were contained in S. 888 as reported by the Senate
Committee on Health, Education, Labor, and Pensions, but were not contained in
H.R. 13 as passed by the House: provisions making the Chairman of the National
Commission on Library and Information Science a member (nonvoting) of the
National Museum and Library Services Board; a prohibition against using IMLS
funds for construction; and provisions raising liability amounts in the Arts and
Artifacts Indemnity Act.9
S. 238 (Reed) was introduced on January 29, 2003, and was referred to the
Senate Committee on Health, Education, Labor and Pensions. The Library Services
provisions of this bill are essentially the same as S. 2611 (Reed), introduced in the
107th Congress (discussed below). Authorization levels in S. 238 are $350 million
for Library Services and $65 million for Museum Services. S. 238, however, unlike
S. 2611, also includes amendments raising liability amounts in the Arts and Artifacts
Indemnity Act.
107th Congress. On February 14, 2002, the House Subcommittee on Select
Education held a hearing on “Equipping Museums and Libraries for the 21st
Century,” at which Dr. Martin, the Director of the IMLS, and two librarians testified.
On February 26, 2002, legislation was introduced (H.R. 3784, Hoekstra) that would
have reauthorized the LSTA within the Museum and Library Services Act of 2002.
The full House Committee on Education and the Workforce conducted a mark-up,
and ordered H.R. 3784 favorably reported, as amended, on March 20, 2002. H.R.
3784 was amended to include specific authorization levels for Library Services and
Museum Services for FY2003, $300 million and $50 million, respectively. In
addition, H.R. 3784 was amended to increase the minimum grant for outlying areas
to $60,000;10 if appropriations were sufficient to permit state minimum grants of
$500,000.
9 For more on Museum Services in IMLS see CRS Report RS20287, Arts and Humanities:
Background on Funding
, by Susan Boren.
10 H.R. 3784, as amended by the full Committee, reinstated the language in the current
LSTA which states that the share of LSTA funds allocated to the “Freely Associated States”
(Palau, the Republic of Marshall Islands, and the Federated States of Micronesia) under this
formula will be reserved and allocated among these areas plus the U.S. Virgin Islands,
Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, on a
competitive basis, via the Pacific Regional Educational Laboratory in Hawaii.

CRS-7
H.R. 3784 would also have amended the LSTA in several other ways, including:
! increasing the minimum state allotment from $340,000 to $500,000,
if the amount appropriated for a year, and available for state
allotments, exceeded the amount of allotments to all states in
FY2002;
! requiring the Director to carry out and publish analyses of the impact
of museum and library services, and increasing from 3% to 3.5% the
amount available for federal administrative costs, to provide funding
for this new function;
! locating advisory functions (which for libraries were previously
delegated to the National Commission on Libraries and Information
Sciences) within a new National Museum and Library Services
Board (previously solely a Museum Services Board) in the IMLS;
! permitting the Director of the IMLS to make national awards for
library services, in addition to the already authorized national awards
for museum service.
Legislation to reauthorize the Museum and Library Services Act of 2002, S.
2611 (Reed), was introduced in the Senate on March 11, 2002, and was referred to
the Committee on Health, Education, Labor, and Pensions. S. 2611 differed from the
House bill (H.R. 3784) in several respects:
! it would have increased the overall FY2003 authorization level for
Library Services and Museum Services to $350 million and $65
million, respectively;
! it would have increased the minimum state allotment for library
services to $680,000, if the amount appropriated for a year, and
available for state allotments, exceeded the amount of allotments to
all states in FY2002;
! it would have added the National Commission on Libraries and
Information Sciences chair as a member of the newly consolidated
advisory board — the Museum and Library Services board — and
would have added one additional board member with expertise in
museum services; and
! it would have made technical changes to the National Commission
on Libraries and Information Sciences statute.
The American Library Association (ALA) argues that current funding levels
provided for the LSTA are not sufficient to address the LSTA’s mission, and in
particular that the minimum state grant is too low for small states to provide
improved library services to the communities they serve. The ALA argues that
minimum state grants should be raised from $340,000 to $680,000, and the overall
authorization for the LSTA should be increased to $500 million. In addition, the
ALA argues that there should be a specific line item providing for an annual
evaluation of the LSTA’s effectiveness.