NASAA Notes: June 2025

June 3, 2025

Congress's Return Brings Major Fiscal Fights—and Challenges for Arts Funding

After adjourning for the Memorial Day recess, Congress returned to Washington this week with an intense focus on advancing President Trump’s top legislative priority: a reconciliation package to extend the 2017 Tax Cuts and Jobs Act. Failure to pass this legislation would result in tax increases for most Americans and businesses, a scenario Republicans are eager to avoid. While extending this law might seem straightforward, the political landscape is anything but. Many Republican members are pressing for broader federal spending cuts as part of the deal, and party leadership is still undecided about the path forward. Before the recess, the House passed an extension that also includes controversial measures: reducing Medicaid benefits and repealing large portions of the climate and energy focused Inflation Reduction Act. The Senate is expected to begin considering the House’s package this week and may seek to make modifications.

Although these developments are not directly related to arts policy, they will have significant consequences for the National Endowment for the Arts (NEA) and other federal cultural agencies. The complex and high-stakes nature of reconciliation negotiations will likely delay the completion of broader appropriations legislation, including funding for the NEA. Until reconciliation is resolved, Congress is unlikely to finalize agency budgets, leaving the future of arts funding in limbo.

Adding to the challenge, last month the President submitted his fiscal year 2026 budget request to Congress, once again proposing the elimination of the NEA and other cultural agencies. Disappointing but not surprising, this recommendation mirrors similar proposals made annually during the President’s first term. Despite the President’s stance, Congress has consistently and on a bipartisan basis rejected calls to defund the NEA, recognizing the essential role of the federal-state partnership in supporting arts access nationwide. Importantly, this partnership directs 40% of NEA grant funding to state and jurisdictional arts agencies and regional arts organizations, ensuring that arts resources reach communities in every corner of the country.

As Congress navigates these fiscal battles, now is a critical time for arts advocates to engage with their legislators. While we may not see formal action on appropriations legislation for the arts until reconciliation is resolved, it is essential for supporters of the NEA and the federal-state partnership to continue making the case for sustained investment. Congress has demonstrated bipartisan support for the arts in the past, and with a concerted effort from advocates, we can ensure that this support remains strong.

In this Issue

From the President and CEO

State to State

Legislative Update

The Research Digest

Announcements and Resources

More Notes from NASAA

Subscribe

Subscribe

×

To receive information regarding updates to our newslettter. Please fill out the form below.