20 USC 9162 - National leadership grants, contracts, or cooperative agreements

(a) In general 
From the amounts reserved under section 9131 (a)(1)(B) of this title for any fiscal year the Director shall establish and carry out a program of awarding grants or entering into contracts or cooperative agreements to enhance the quality of library services nationwide and to provide coordination between libraries and museums. Such grants, contracts, and cooperative agreements shall be used for activities that may include
(1) education, recruitment, and training of persons in library and information science, particularly in areas of new technology and other critical needs, including graduate fellowships, traineeships, institutes, or other programs;
(2) research and demonstration projects related to the improvement of libraries, education in library and information science, enhancement of library services through effective and efficient use of new technologies, and dissemination of information derived from such projects;
(3) preserving or digitization of library materials and resources, giving priority to projects emphasizing coordination, avoidance of duplication, and access by researchers beyond the institution or library entity undertaking the project; and
(4) model programs demonstrating cooperative efforts between libraries and museums.
(b) Grants, contracts, or cooperative agreements 

(1) In general 
The Director may carry out the activities described in subsection (a) of this section by awarding grants to, or entering into contracts or cooperative agreements with, libraries, agencies, institutions of higher education, or museums, where appropriate.
(2) Competitive basis 
Grants, contracts, and cooperative agreements under this section shall be awarded on a competitive basis.
(c) Special rule 
The Director shall make every effort to ensure that activities assisted under this section are administered by appropriate library and museum professionals or experts.