Why Partnerships and Data Matter to the Future of the Arts

Strong advocacy begins with a clear understanding of the impact of the arts and the partnerships that make that impact possible. From measuring the creative economy to ensuring communities nationwide have access to resources, reliable data and productive partnerships remain at the heart of effective arts policy. Two important efforts demonstrate why continued investment in the arts matters: protecting access to reliable economic data and sustaining the federal-state partnership that helps communities thrive.

The arts are recognized for the extraordinary economic impact on communities throughout the United States.

Data tells a powerful story. In 2023, arts and cultural production grew by 6.6%, more than twice the growth rate of the overall U.S. economy. The creative sector contributed $1.17 trillion to the nation’s gross domestic product, accounting for 4.2% of the economy, supporting 5.4 million jobs, and generating a $36.8 billion trade surplus through cultural exports. Those numbers reinforce what those of us in the arts have long understood: the arts are an essential American industry.

That is why two federal issues deserve our attention. One affects how we measure the economic impact of the arts. The other concerns how federal investment reaches communities across the country. Together, they shape the future of the creative sector.

Since 2012, the National Endowment for the Arts (NEA) and the Bureau of Economic Analysis (BEA) have partnered to produce the Arts and Cultural Production Satellite Account (ACPSA), the nation’s most authoritative source of data on the arts economy.

The ACPSA tracks the value of arts and cultural goods and services, employment, worker compensation, consumer spending, and international trade. With more than 20 years of national and state-level data, it gives policymakers, business leaders, researchers and advocates the information they need to make informed decisions.

The data tell the story of an industry that fuels innovation, attracts tourism, strengthens local businesses, and creates opportunities in every corner of the country. Research shows that audiences attending arts events spend an average of $38.46 beyond the cost of admission at nearby restaurants, retailers and other businesses. The ACPSA provides the authoritative federal economic data that complement research like this, giving policymakers a more complete picture of the arts’ impact.

The ACPSA tool and vital resource is now at risk.

Earlier this year, the BEA announced it would discontinue regular production of the ACPSA. Because the account was created through an interagency partnership rather than congressional authorization, it lacks the statutory protection afforded to some other federal economic accounts.

Losing the ACPSA would mean losing the nation’s most trusted source of federal data about the creative economy. Without reliable data, it becomes more difficult to demonstrate economic value of the arts, evaluate public investments and make informed policy decisions. At a time when evidence-based decision making matters more than ever, that would be a significant loss.

Fortunately, the arts also benefit from another enduring federal success story: the partnership between the NEA and state arts agencies.

For decades, Congress has directed a portion (40%) of NEA grant funding to states, jurisdictions and regions, creating one of the nation’s most effective federal-state partnerships. Because state arts agencies work closely with governors, legislators, community leaders and citizens, they are uniquely positioned to invest federal resources where they can have the greatest impact.

Together, the NEA and state arts agencies support more than 30,000 grants each year, reaching communities in every congressional district. Those investments expand arts education, strengthen local economies, support veterans and military families, improve health and well-being, and ensure that rural and underserved communities have meaningful access to the arts.

However, it is equally important to note that this partnership leverages additional investment. Every federal arts dollar attracts approximately $9 from other public and private sources, multiplying its impact far beyond the original appropriation.

As Congress considers fiscal year 2027 funding, NASAA is encouraging lawmakers to preserve, within the appropriations bill, the long-standing balance between the NEA’s national programs and its state partnership. That balance has allowed the agency to provide national leadership while ensuring that communities of every size benefit from federal investment.

Maintaining that proven approach also recognizes today’s fiscal realities. State Partnership grants from the NEA require matching state funds, and many states are navigating significant budget pressures. Preserving the existing funding structure protects both the NEA’s nationally recognized initiatives and the flexibility states need to meet local priorities.

The future of the arts depends on the partnerships, data and investments that allow communities to thrive. Informed voices are essential to the future of the ACPSA and maintaining federal arts funding. As members of Congress return home for the August recess, now is a great time to connect with elected officials, share the impact of the arts in your community and reinforce why reliable data and sustained federal investment matter. Learn more about these issues, explore NASAA’s advocacy resources on our website, and join us in making the case for the data and investments needed to sustain a vibrant creative economy nationwide.

Read NASAA’s testimony to the U.S. House of Representatives supporting the ACPSA and letter to Subcommittee on Interior, Environment and Related Agencies in support of continued funding for the National Endowment for the Arts.