February 3, 2026
NEA Funded for FY2026…
As we begin 2026, there is good news to report for the arts community. Congress has passed, and the President has signed into law, fiscal year 2026 funding for the National Endowment for the Arts (NEA) at $207 million. Importantly, the legislation fully preserves the federal-state partnership, including the long-standing requirement that 40% of NEA grant funding be allocated to state and jurisdictional arts agencies and regional arts organizations.
At a time of heightened political tension and uncertainty, this outcome is meaningful. It reflects continued bipartisan recognition of the role state arts agencies play in ensuring federal investments reach communities in every corner of the country.
Under normal circumstances, passage of the FY2026 bill would mean the arts field is already beginning to plan its advocacy strategy for FY2027. This year, however, several factors are slowing the congressional budget process and shaping the near-term landscape in Washington.
First, Democrats and Republicans remain at odds over the administration’s immigration enforcement activities and related policy questions. Until that broader dispute is resolved, Congress is unlikely to begin serious work on the next round of appropriations. In practical terms, this means that committees are not yet turning their attention to FY2027 funding levels or priorities.
Second, the President is expected to outline his legislative and budgetary agenda in his annual State of the Union address, scheduled for February 24. That speech will offer important signals about the administration’s policy focus for the year ahead and will likely influence the timing and contours of future budget negotiations. Until then, much of Capitol Hill is in a holding pattern.
While this may feel like a pause in momentum, it is not a moment for disengagement. One of the most effective things arts leaders can do right now is maintain consistent dialogue with policymakers—both in Congress and in state delegations—about your work, your impact and the role federal arts funding plays in your communities.
These conversations do not need to be tied to a specific ask. In fact, ongoing relationship building outside of a formal appropriations push is often what positions the arts community to be effective when engagement does become necessary. Sharing examples of how NEA funding supports local organizations, artists, education programs and economic development helps reinforce why the federal-state partnership matters and why it deserves continued protection.
As Congress works through its current challenges, staying visible, credible and engaged will ensure that state arts agencies are well positioned when the FY2027 budget conversation begins in earnest. The preservation of NEA funding and the 40% allocation this year is a reminder that sustained engagement works—and that it remains essential in the months ahead.
In this Issue
From the President and CEO
State to State
Legislative Update
The Research Digest
Announcements and Resources
More Notes from NASAA
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