In a major legal decision with deep implications for communities across the country, a federal judge has stopped former President Donald Trump from dismantling three federal agencies that serve libraries, small businesses, and workers.
The ruling, issued earlier this week by U.S. District Judge John McConnell, halted a sweeping executive order that would have eliminated the Institute of Museum and Library Services (IMLS), the Minority Business Development Agency (MBDA), and the Federal Mediation and Conciliation Service (FMCS).
These agencies may not be household names—but to many Americans, especially those in under-resourced communities, they’re essential.
The Executive Order That Sparked Outrage
Back in March, Trump—seeking to dramatically reduce what he described as “government bloat”—issued an order to dismantle the three agencies entirely. His administration claimed the move was about streamlining and cutting costs, but critics quickly pushed back, warning it would gut vital services.
The IMLS provides crucial funding for public libraries and museums. The MBDA helps minority-owned businesses get off the ground and stay competitive. And the FMCS helps mediate labor disputes, preventing strikes and workplace unrest.
Advocates across the country called the move short-sighted and dangerous, especially in a time when many communities are still recovering from the economic effects of the pandemic.
“This Would Have Been Devastating”
In California alone, the IMLS was set to cut off nearly $16 million in funding used for reading programs, library access in rural towns, and digital literacy classes for seniors and underserved youth.
“This would have been devastating,” said Greg Lucas, California’s state librarian. “Libraries are more than books—they’re community centers, safe spaces, places for kids to do homework and jobseekers to apply for work.”
The MBDA’s potential closure was another flashpoint. Business owners and advocacy groups warned that it would disproportionately hurt entrepreneurs of color who rely on the agency for grants, mentorship, and legal support.
“Stripping this away would’ve been like pulling the rug out from under thousands of small business owners,” said Carmen Velez, who started her own bakery in Atlanta with help from the MBDA. “We’re not asking for handouts—we’re asking for a fair shot.”
The Court’s Decision: Congress Makes the Rules
Judge McConnell sided with 21 attorneys general from across the country who sued the Trump administration over the executive order. His ruling emphasized that only Congress—not the president—has the authority to shut down agencies it created.
“The Constitution is clear on this,” McConnell wrote in his decision. “The executive branch cannot bypass Congress to eliminate agencies that are fulfilling legally mandated missions.”
For many legal experts, the ruling was both expected and necessary. “This wasn’t just about bureaucracy,” said constitutional law professor Angela Ryder. “It was about checks and balances—and protecting institutions that serve real people.”
What Happens Now?
For now, the agencies will remain fully operational. Programs that were on hold due to uncertainty—like summer library reading challenges, small business development workshops, and union mediation services—are expected to resume.
But supporters are also bracing for future political battles. Trump’s allies have signaled they may appeal the decision, and conservative lawmakers have suggested introducing legislation to reduce or restructure the agencies through Congress.
“This isn’t over,” warned State Attorney General Rob Bonta, one of the leaders behind the lawsuit. “But we’ve made it clear: You can’t erase community programs with the stroke of a pen.”
Bigger Than Politics
To many, this case has become about more than just legal authority or executive overreach—it’s about how we prioritize support for everyday Americans.
“It’s easy to say cut spending when you’re not the one losing internet access at your local library or a business grant that keeps your dream alive,” said Velez. “These agencies aren’t ‘extras’—they’re lifelines.”
As the dust settles on this ruling, communities across the country are breathing a sigh of relief. For now, at least, their libraries, small businesses, and labor rights have won a reprieve—and a judge’s reminder that public services should serve the public, not politics.
