Loss of federal funding threatens Oregon libraries and key services

PORTLAND, Ore. (KOIN) — A preliminary assessment released August 11 details how Oregon's Supplemental Nutrition Assistance Program and Medicaid will be the programs hardest hit by the passage of H.R.1, but the State Library of Oregon also stands to lose a large chunk of its funding.

The state library provides support to other libraries in the state. They answer questions, provide grants and offer statewide services.

"Basically we are kind of like librarians for other librarians." said Buzzy Nielsen, program manager for State Library of Oregon.

Twenty-five percent of the state library's budget is federally funded by the Library Service and Technology Act. The money is known as LTSA funds, and it amounts to about $2.6 million a year, Nielsen said.

Currently, there are no LTSA funds in the 2026 federal budget.

"It's really hard to plan if we don't know if we have money. It's really hard to plan if we don't know whether we will have 70% of the staff who work with libraries," Nielsen said.

According to the preliminary impact analysis issued by the governor's office, libraries across Oregon will experience increased costs and fewer services. The state library would need to terminate most of its staff, and many services will be canceled beginning June 2026.

At local libraries throughout the state, the cuts will look different depending on what services each branch utilizes. It could include cuts to subscription databases provided to community college libraries, and decreased grant availability.

"This comes at a time also when locally we have several Oregon governments, universities and colleges that are also having funding issues," Nielsen said. "This just adds to that already challenging situation that libraries in Oregon are in."

In Eastern Oregon, courier services risk being cut, which means residents in remote parts of the state will have a harder time accessing library materials.

Programs like the statewide kids reading competition Oregon Battle of the Books, and the Oregon School Library System which teachers kids information literacy skills, are also at risk.

Nielsen said that most of Oregon's school libraries are not staffed by certified teacher librarians. Instead, they're classified staff who may or may not have formal librarian training. In those cases, state library staff work with the schools to ensure their libraries function properly. But without federal funding, they will have fewer staff available to support schools.