This report focuses on funding and services provided through the Institute of Museum and Library Services (IMLS) Grants to States program in the most recent full reporting years. IMLS grants to State Library Administrative Agencies (SLAA's) represent the single largest source of federal funding for the nation's libraries and are the only programmatic grants for libraries to require statewide planning. The purpose of the analysis is to inform the administration, Congress and the library community about the contributions of this program to the public and its significance within the larger context of community-based services. The report provides a description of the Grants to States program; a discussion of the factors that affect state program plans; a review of program activities submitted in state program annual reports; and an analysis of program expenditures and then concludes with profiles for each of the 50 states, the District of Columbia, and Puerto Rico. Sources of data for this report include state program reports for the Grants to States program between FY 2003 and FY 2006 and data from annual State Library Agency Surveys collected by the National Center for Education Statistics and the Institute of Museum and Library Services between 1998 and 2007. This report draws on the data and analysis conducted by Ethel Himmel and Bill Wilson and reported in "Library Services and Technology Act: Grants to States Program Trends Analysis." A complete list of expert committee members is appended. (Contains 7 figures and 19 footnotes.)