What’s at Stake in the NEA’s Quiet Retreat From the Arts
On May 2, the National Endowment for the Arts (NEA) abruptly terminated hundreds of grants to arts organizations across the country. Notifications were sent from a non-reply email address, citing a shift in grantmaking priorities “to focus funding on projects that reflect the nation’s rich artistic heritage and creativity as prioritized by the president.” This sudden policy reversal, following renewed efforts from the Trump administration to eliminate the agency entirely, blindsided recipients, from nationally recognized institutions to small local programs. The result? Deep uncertainty and financial peril for organizations that serve as economic and cultural anchors in their communities.
This is not a matter of partisan preference—it’s a matter of national consequence. By federal allocation standards, the NEA’s budget is minuscule, accounting for just 0.003 percent of federal spending in 2022. Yet its return on investment is extraordinary. The nonprofit arts and culture sector generated $151.7 billion in economic activity in 2022, supporting 2.6 million jobs and delivering $29.1 billion in government revenue, according to an Arts & Economic Prosperity 6 study. The Bureau of Economic Analysis reported that America’s arts and culture sector contributed $1.2 trillion to GDP in 2023—more than agriculture, transportation or utilities. And the NEA doesn’t fund irresponsibly. It employs an extensive, peer-reviewed selection process, and every dollar awarded must be matched by another from private, local or state sources, ensuring that, rather than replacing community investment, federal funding encourages it and multiplies its impact.
More than 60 percent of NEA grants go to small and mid-sized organizations with annual budgets under $2 million—those most deeply embedded in communities and least likely to have large endowments or ticket revenues to fall back on. These are the dance companies offering workshops in city parks, the after-school theater programs and the local music ensembles introducing new generations to classical instruments. One-third of NEA-funded programming reaches high-poverty neighborhoods and underserved populations, including people with disabilities, veterans and the incarcerated.
In New York City, where the arts are inextricable from the city’s identity and economy, these organizations do more than create culture—they support livelihoods. While Broadway may grab headlines, it is the citywide network of nonprofit venues, rehearsal studios and community stages that sustains the creative workforce and feeds future stars. Eliminate support for the small institutions, and the entire ecosystem falters.
But the NEA’s impact extends well beyond big cities; it funds projects in all 435 congressional districts. Around 4,000 communities benefit each year, and more than 41 million Americans attend a live event supported by NEA funding annually. In rural towns, these programs are often the only reliable access to the arts and a key source of civic pride.
These cuts won’t just harm our economy, they will be detrimental to our collective well-being. As an outlet for expression, empathy and community-building, the performing arts offer a vital antidote to digital overload. This is, perhaps, especially vital amidst the growing mental health crisis we are seeing in young people, but the mental and physical benefits of engaging with the arts across all age groups are well-studied and quantifiable. A study published in Art Therapy found that 45 minutes of creative activity can reduce cortisol levels—the body’s primary stress hormone—by up to 25 percent. A 2019 study conducted by researchers from University College London found that adults who engaged in the arts, even occasionally, had a 14 percent lower risk of dying than those who did not.
There is also a strategic imperative. Every smart industry invests in R&D. The arts are no different. The NEA supports experimentation and innovation at the earliest stages, when new ideas are most fragile. This is where our cultural future begins—not with commercial guarantees, but with bold visions in need of space to grow. Undermining public support means stifling creative innovation and weakening our global cultural influence.
Calls to eliminate the NEA are not only economically short-sighted—they’re out of step with what Americans want. A major national public opinion survey conducted by Americans for the Arts in 2023 found that nearly 80 percent of Americans believe arts and culture are important to their community’s business and economy, and 86 percent support arts education in schools. The arts make our neighborhoods livable, our cities vibrant and our children more prepared to thrive in a complex world.
As we approach the Tony Awards and celebrate excellence on Broadway, we must also consider the scaffolding that supports it. The future of American theater—and of our cultural legacy—depends on the choices we make now. Reviving NEA funding isn’t a partisan agenda—it’s a common-sense investment in jobs, health, education and the kind of civic unity this country so urgently needs.