The authorization of the Museum and Library Services Act (MLSA) expired with FY2009. Its reauthorization may be considered by the 111 th Congress. One issue that may arise during reauthorization is the current status of conservation and preservation of museum and library collections. Other issues that may arise include general issues of funding across museum and library services, the changing role of libraries in communities, and alternative funding models for museum services. This report describes the background, history, and current policy and programs of both library services and museum services. In addition, it discusses major changes related to the 2003 reauthorization of MLSA and issues for Congress to consider in the next reauthorization. In FY2007, the United States had 9,214 public libraries serving areas that encompassed 97% of the total U. S. population. In the same year, nationwide circulation of public library materials was 2.2 billion, or 7.4 per capita. Library funds are provided through a mixture of local, state, federal, and other sources. Funding for public libraries by each of these sources in FY2007 equaled 84.1%, 6.7%, 0.4%, and 8.7%, respectively. The federal government has provided direct aid for public libraries since 1956, the year the Library Services and Construction Act (LSCA) was enacted. This act and its successors represent the largest federal investment in public libraries; although, as the above data show, the federal contribution represents a small percentage of public libraries' total expenditures. In addition to its support of public libraries, the federal government also supports a variety of other libraries. Among other things, it funds the Library of Congress and executive agency libraries; it provides assistance to research libraries and school libraries; and it supports the collection of statistics on libraries. In 1996, the Library Services and Technology Act (LSTA) was enacted, replacing the LSCA, through Title VII, Subtitle B, of the FY1997 Labor, Health and Human Services, Education, and Related Agencies Appropriations Act ( P.L. 104-208 ). In addition to the LSCA, the LSTA consolidated and replaced a number of other programs, including library assistance programs formerly authorized by Title II of the Higher Education Act (HEA), and Title III, Part F, of the Elementary and Secondary Education Act (ESEA) . A wide variety 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 Library Services and Technology Act, not just the public and research libraries eligible for aid under the predecessor legislation, the Library Services and Construction Act (LSCA). LSTA was most recently reauthorized as Title II, Library Services and Technology (LST), of the Museum and Library Services Act of 2003 (MLSA). The major changes adopted through this reauthorization are discussed later in this report. These changes include, among other things, prohibiting the funding of projects deemed obscene, increasing the amount of initial LST state grants, expanding IMLS responsibility for advisory functions and data collection, and requiring the director of IMLS to carry out and publish analyses of the impact of museum and library services. While states have had a large degree of discretion in selecting grantees and deciding how funds could be used under both the former LSCA and the current LST, overall state discretion was increased under the current program. At the same time, some funds—particularly aid for construction under the former LSCA Title II—were intended for specific purposes that are not authorized for LST grants. In fact, P.L. 108-81 includes a provision explicitly prohibiting the use of funds for construction. The library services and technology provisions of P.L. 108-81 also focused more thoroughly on relatively new forms of information sharing and networking, such as the internet, than the LSCA did. LST programs are currently authorized through FY2009 as Title II of the Museum and Library Services Act of 2003 ( P.L. 108-81 ). P.L. 108-81 authorized $232 million for LST in FY2004, and such sums as may be necessary for FY2005-FY2009. The bulk of LST funding is distributed to states via formula grants. Funding is also provided for Native Americans and for national leadership projects. LST grants to the states are allocated to state library administrative agencies (SLAAs), and may be used for the following basic purposes: expanding services for learning and access to information in a variety of formats in all type of libraries, developing and improving electronic or other linkages and networks connecting providers and consumers of library services and resources; and/or targeting library services to underserved or disadvantaged populations, such as persons with disabilities, those with limited literacy skills, or children from poor families. Although the bulk of funds appropriated for LST are used for state grants , a percentage of total funds is reserved for national activities, Native Americans , and federal administration . Of the total LST appropriations for a given year, 3.75% must be reserved for national activities . These funds support competitively awarded grants or contracts for research, demonstration programs, the preservation of collections, and the conversion of materials to digital form, as well as education and training for librarians. In addition, 1.75% of appropriations is reserved for services to Native Americans (including Indian tribes, Alaskan Natives, and Native Hawaiians), and up to 3.5% of appropriations may be used for federal administration of LST programs. Of the total funding reserved for state grants, each state receives a "flat grant" (an initial amount that is the same for each state) of $680,000 ($60,000 in the case of outlying areas). P.L. 108-81 provided for an increase in initial state grants for library services and technology to $680,000 (from $340,000) in years in which the amount appropriated for the year, and available for state grants, exceeds the amount of grants to all states in FY2003. In addition, initial state grants for outlying areas were increased to $60,000 (from $40,000) if appropriations in a given year are sufficient to meet the higher initial state grant amount of $680,000. FY2009 was the first year in which appropriations for the IMLS were sufficient to trigger the higher state grant amounts authorized by P.L. 108-81 . Participating states are required to develop five-year plans that set goals and priorities consistent with the purposes of LST (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. The federal share of the total costs of assisted activities is 66% in all cases. If there is no year-to-year decline in federal funding for LST, states must maintain levels of spending for library programs or their LST grants will be reduced in proportion to the reduction in state funding. 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. LST grants are intended to provide states with considerable latitude in the use of funds. LST funds are allocated within states on a competitive basis by the SLAAs. LST is administered by the Institute of Museum and Library Services (IMLS). The IMLS was created through expansion of the pre-existing Institute of Museum Services (IMS). The IMLS contains an Office of Museum Services (OMS) and an Office of Library Services and Technology. The IMLS directorship alternates between persons with "special competence" in library and information services or in museum services. The current IMLS director is Anne-Imelda Radice, who previously served as the acting assistant chairwoman for programs at the National Endowment for the Humanities. An Office of Library Services and Technology within the IMLS is directed by a deputy director who is required to have a graduate degree in library science and expertise in library and information services. The FY2008 Administration budget proposed centralizing more federal library functions within the IMLS. In FY2008, IMLS was given responsibility for two library surveys previously conducted by the Department of Education's National Center for Education Statistics (NCES), namely the Public Library Survey and the State Library Agency Survey. NCES continues to be responsible for the Academic Libraries Survey and the School Library Media Center Survey. In the same year, IMLS was made responsible for functions previously performed by the National Commission on Library and Information Science (NCLIS). These functions include advising the President and Congress on library and information policies; conducting surveys and studies on library and information needs; recommending plans to ensure the American people have adequate library and information services; and advising federal, state, local, and private agencies on library and information science. The most recent reauthorization of MLSA (via P.L. 108-81 ) included new provisions requiring IMLS to carry out and publish analyses of the impact of museum and library services, and to increase from 3% to 3.5% the amount available for federal administrative costs, to provide funding for this new function. Recent IMLS-commissioned research issued in response to this new charge includes the following studies: Interconnections: The IMLS National Study on the Use of Libraries, Museums and the Interne t (February 2008); Nine to Nineteen: Y outh in Museums and Libraries: A Practitioner's Guide (April 2008); and A Catalyst for Change: LSTA Grants to States Program Activities and the Transformation of Library Services to the Public (June 2009).