This article discusses models of governmental library development co-funding. Specifically the article compares strategies used by national bodies in Denmark and Sweden in order to assert the governmental influence on development in municipal public libraries. Both countries uses support via development grants as model of co-funding. This model enables the national government to control the development in the municipal libraries. The model has New Public Management (NPM) characteristics, as the system aims to strengthen competition between libraries. Governmental influence on public library development is evident in both Denmark and Sweden. However, the article identifies both differences and similarities in both the means and the ends of governmental influence in the libraries. Two distinct strategies for influencing the municipal (local) libraries can be identified in Denmark and Sweden. Both countries make use of development grants that can be won only after application in competition with other libraries. This means that both countries uses an NPM oriented strategy in order to gain national influence at the municipal level. Both countries use impact as a major success criterion. However, the strategies used in order to obtain this national impact (spreading the project results) are different. Denmark uses a strategy that privileges the “best” libraries. In turn, this means that the biggest, most experienced application writers are most likely to be rewarded with funding in form of a development grant. This strategy tends to reward the largest libraries. Sweden rewards cooperation. The strategy used by the Swedish Arts Council creates a pressure for libraries to coordinate their efforts. In turn it gives the county libraries the task to find partners and to persuade the local libraries to take part in the project they have formulated. This strategy makes it difficult for individual local libraries to shape the direction of the Swedish Library development.