The Funding Programs Advancing Digital Library Services

In this week’s Princh Library Blog, recurring guest writer Nina Grant discusses how libraries are bringing digital services to their patrons – and the means through which they get the funding to do so. Enjoy!
Over 739 million digital checkouts of e-books, audiobooks, and digital magazines were reported by libraries across the U.S. in 2024. That’s an impressive 17% increase from the previous year. So, what’s behind this rapid growth and modernization? Well, libraries have made a collective effort to make digital borrowing and streaming easier than ever for patrons — particularly thanks to their adoption of platforms like Overdrive’s Libby and Sora apps. But, digital transformation costs money. Luckily, various funding programs exist to help libraries make these exciting changes. From improving access to high-speed internet to the provision of affordable technology, government funding is set to help libraries modernize their services and continue being indispensable to the communities they serve.
The E-rate program brings high-speed internet to libraries
The E-rate program, also known as the Schools and Libraries Program of the Universal Service Fund, helps libraries access high-speed internet at an affordable price. Up to $4.456 billion in funding is provided every year based on demand. This is important as fast connections are no longer a luxury. Patrons expect to be able to use library internet to study, job hunt, stream movies, or download books all without a hitch. Fortunately, through the E-rate program, libraries can access discounts of at least 20-90% on broadband services, internet access, and system maintenance. These discounts vary depending on location, and rural libraries usually receive the best deals as high-speed broadband is often inaccessible in these regions. In fact, 18% of rural libraries say their internet speeds are either “sometimes” or “rarely” fast enough for patrons. But the good news is, E-rate can help improve this, and bring fast connections to patrons across the country.
Government contracts make technology affordable
Government contracts also make it possible for libraries to purchase technology at reduced rates. When you consider just how much libraries spend per year on technology — around $453,700 on average — you can see just how much of a help cheaper prices can be. The way this process works is fairly straightforward. In many cases, the General Services Administration (GSA) negotiates contracts with technology vendors and service providers for equipment like desktop computers, laptops, printers, routers, servers, and storage equipment. The GSA is one of the largest federal procurement agencies, and it spent around $15 billion in total on contracts in 2023. This money is certainly put to good use, as thanks to these pre-negotiated contracts, libraries are able to browse available equipment and purchase them for lower prices.
When it comes to the technology libraries intend to invest in this year, at least one-third of their tech budgets will go toward better integrated library systems, a recent Library Journal report reveals. These systems make core library tasks quicker and easier to carry out. Another 20% of tech budgets will be allocated to new software, hardware (like 3D-printers and computers), and fast internet access.
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The Digital Equity Act — libraries to receive $1 billion boost
Last year, U.S. libraries could apply for funding totalling over $1 billion dollars to improve digital equity and inclusion — something that just means that everyone should have access to digital devices with internet connections, and the skills and confidence to use them. This funding will be provided under the Digital Equity Act (DEA). If you want to get an idea of how this money will be spent, it helps to know what librarians included in their funding applications; in most cases, applications focused on plans to make libraries more digitally inclusive and equitable.
Creating tech-savvy communities
Although exact plans vary between libraries, there are some common threads. For instance, many libraries plan to offer courses on computers or internet use. Currently, almost 90% of public libraries offer digital literacy programming, while over 35% have staff dedicated to teaching these programs. Computer programming, coding, 3D printing, and robotics are common subjects taught. In their applications, many librarians also stated intentions to provide patrons with laptops and offer wifi hotspots. Some public libraries also plan to launch a digital help service where people can visit during set drop-in times and get help with their devices or internet use.
So, when exactly will patrons see these plans put into action? Over the next five years. That’s when libraries will receive the funds through state capacity grants awarded by the National Telecommunications and Information Administration (the federal agency in charge of Digital Equity Act funds). Libraries will then be able move forward with their plans to create tech-savvy communities.
With libraries across the U.S. now set to make the shift to digital, government funding is needed to make this transition possible. Whether the money is used to improve access to high-speed internet, make technology more affordable, or improve digital equity and inclusion, it’ll ultimately help libraries modernize their services, so they can better meet, and even exceed, patron needs.
We will be back with another interesting article from the library world soon!
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