White House Federal Update

NEA Grants Cancelled, President Proposes Elimination of NEA, NEH, & IMLS

NEA Grants Cancelled, President Proposes Elimination of NEA, NEH, & IMLS

White House Federal Update

On Friday morning, May 2nd, the White House released the President’s FY26 spending proposal which calls for the elimination of the National Endowment for the Arts (NEA), the National Endowment for the Humanities (NEH), and the Institute of Museum and Library Services (IMLS). This is not at all unexpected as the President proposed eliminated these agencies in all four budget proposals in his first term.

That evening the NEA sent emails rescinding offers for grants to those organizations that had been provided grant offers, but to whom the grants had not yet been issued. The NEA also sent grant termination notices to numerous (but not all) direct NEA grantees with open awards. However, unlike the recent abrupt cancellations of grants from other agencies, the termination date for these NEA grants is May 31, 2025, and payment requests can be made until June 30, 2025. Cancelled grantees also have seven days to appeal this decision. Arts NC is currently identifying the canceled NEA grants in North Carolina. The NEA gave the following reason for grant termination:

The NEA is updating its grantmaking policy priorities to focus funding on projects that reflect the nation’s rich artistic heritage and creativity as prioritized by the President. Consequently, we are terminating awards that fall outside these new priorities. The NEA will now prioritize projects that elevate the Nation’s HBCUs and Hispanic Serving Institutions, celebrate the 250th anniversary of American independence, foster AI competency, empower houses of worship to serve communities, assist with disaster recovery, foster skilled trade jobs, make America healthy again, support the military and veterans, support Tribal communities, make the District of Columbia safe and beautiful, and support the economic development of Asian American communities. Funding is being allocated in a new direction in furtherance of the Administration’s agenda.

Additionally, NEA and NEH have committed $17 million each (total of $34 million) to the creation of the National Garden of American Heroes. Of this $34 million, the two cultural agencies will devote $30 million from their FY 2025 appropriations to enable the creation of statues in marble, granite, bronze, copper, or brass depicting historical figures tied to the accomplishments of the United States.

Arts North Carolina is working with our national partners and other state and regional allies from across the country on a coordinated response to the president’s budget proposal and the canceled NEA grants, as well as any current or future funding or staffing cuts to the federal cultural agencies.