This is an apolitical blog, but I think this article is worth a read.
I don't know anything about the Improving Literacy for School Libraries Grant Program, but it certainly sounds like something worthy of continued federal investment? Study after study after study has shown that funds invested in early childhood literacy pay for themselves down the line. And I personally know what a big role my own school library played in my education.
Anyone who might know more about this federal budget issue (about the grant program, or about the rationale for cutting the funds), feel free to chime in in the comments section. As always, a variety of opinions are welcome.