From the Research Team

State Arts Agency Funding Preview for FY2026

NASAA has released the FY2026 State Arts Agency Legislative Appropriations Preview, presenting preliminary funding projections for all 56 state and jurisdictional arts agencies for fiscal year 2026. The data shows expected changes in arts funding as states transition away from COVID-19 pandemic-era budget environments.

State arts agencies are projected to receive $650.2 million in total appropriations, representing a $54 million decrease from the previous year and a 7.7% decline. The reduction stems largely from significant cuts to line-item appropriations—money that flows through state arts agencies to other designated recipients. These pass-through appropriations dropped by nearly 39%, while baseline funding for the agencies themselves decreased minimally by 0.7%. Despite this reduction, funding levels remain 54% higher than early-pandemic totals from FY2021.

As federal pandemic relief programs end, states are adjusting their budgets to rely on traditional revenue sources. Funding outcomes vary significantly across the country, reflecting each state’s unique financial situation and priorities. 29 states anticipate funding increases, 21 expect decreases and 6 project stable appropriations.

These projections reflect conditions as of July 2025, which is before many states completed their final budget decisions. Economic changes and revenue fluctuations may lead to midyear adjustments. NASAA will provide a comprehensive report in the upcoming winter, documenting final appropriation decisions across all state arts agencies. For detailed state-specific information, contact NASAA Research Manager Nakyung Rhee. Visit NASAA’s Funding Page to access funding data visualizations, including the new projected per capita appropriations map.