Navigating Changes to Arts & Culture in Pennsylvania
Summary
President Trump's return has placed the future of not only federal arts and culture funding, but also potential policy changes related to the tax code, visas for artists and interpretation of certain laws in question. Basic confusion and lack of clarity about executive orders has led to growing alarm about the future of federal arts funding and related support. Moreover, very recent changes to the National Endowment for the Arts (NEA) “Grants for Arts” combined with The Smithsonian closing its diversity office, the firing of the Kennedy Center’s President and Board, and, the Federal Communication Commission (FCC) Chairman calling for an investigation into National Public Radio (NPR) and Public Broadcasting Service (PBS) over their commercials, indicates that the President intends to be much more aggressive in his cultural policy this term versus his first term. All of which will have a trickle down effect impacting institutions and artists in Pennsylvania and Philadelphia.
Between 2020 and 2024, Pennsylvania’s arts and culture sector received $111 million in federal funding across 967 grants, with $42.5 million directed to the Commonwealth’s Southeastern region. These investments supported local artists, museums, and cultural institutions that drive economic growth and community engagement. One of Trump’s initial executive orders was to rescind Executive Order 14084 – Promoting the Arts, the Humanities, and Museum and Library Services. Originally designed to increase federal support for the arts, particularly in underserved communities, this order was crucial in bolstering arts and cultural institutions nationwide. Its repeal signals a shift away from federal arts investment, consistent with the President’s attempts during his first term to eliminate agencies such as the National Endowment for the Arts (NEA) and the National Endowment for the Humanities (NEH)..
The Trump administration has also disbanded the President’s Committee on the Arts and Humanities (PCAH). This advisory body previously worked closely with the NEA and NEH to shape national arts policy.
The NEA cancelled its “Challenge America” grants which were intended to assist groups in underserved communities. Instead, NEA is prioritizing projects celebrating the nation’s semiquincentennial (250th) celebration. “Grants for Arts” applicants should reflect projects that celebrate the nation’s artisitc heritage and creativity by honoring the United States’ 250th birthday. Applications for such projects are due July 10, 2025.
Related to grants for the Semiquincentennial, all federal agencies are to submit their plans for the 2026 celebration by March 1, 2025.
Last month, the Smithsonian Institution announced the closure of its diversity office, which will affect its consortium of 21 museums, research centers, and libraries across America. This move was taken to align itself with the President’s executive order, which labels diversity, equity, and inclusion (DEI) initiatives as “illegal and immoral discrimination” programs. The Smithsonian receives nearly two-thirds of its $1 billion budget from the federal government.
This week, in an unprecedented move, the President had the entire bi-partisan Board of The Kennedy Center, along with its President, fired. This is the first time a President has removed his predecessor’s Board members at The Kennedy Center. Trump appointed former ambassador Rick Grenell as President of the Center, and the new Board, composed of all his appointees, elected President Trump as Chairman of the Board. This shocking chain of events seems to indicate that the President is wading into the waters of having veto power over “cultural content.”
In keeping with other cuts, Trump’s appointed head of the Federal Communications Commission (FCC), Brendan Carr, has launched an investigation into PBS and NPR for allegedly running commercials. These stations are banned from running commercials because they receive public support, but they do run “corporate underwriting spots” designed to inform viewers but not push a particular product. The FCC Chairman Brendan Carr argues that because NPR and PBS are, in fact, running commercials, they should get no public funding. Interestingly, The Kennedy Center has a long partnership with NPR to air their jazz concerts.
As federal arts funding remains uncertain, state-level investment becomes more crucial than ever. Pennsylvania’s arts funding is historically low and has not increased in a decade, and the state currently ranks 33rd in per capita arts funding.
The Details
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National Endowment for the Arts (NEA), the National Endowment for the Humanities (NEH), and the Institute for Museum and Library Services (IMLS):
Most federal funds for arts and culture organizations flow through the NEA, the NEH, and the IMLS. Direct grants to organizations comprise about 60% of the total funding. The remainder of the funds go to state art agencies, which then distribute the funds.
During his first term, President Trump attempted to eliminate the National Endowment for the Arts (NEA), the National Endowment for the Humanities (NEH), the Corporation for Public Broadcasting (PBS), and the Institute for Museum and Library Services. However, Congress blocked these efforts and restored their funding through bipartisan efforts.
Although Congress stepped in to restore funding during the first Trump term, the second Trump term could be much more aggressive in their targeted funding cuts. Additionally, Congress is looking for ways to offset the cost of tax cuts through budget reconciliation, which requires spending cuts to mitigate increasing the federal deficit.
Funding priorities are anticipated to change under the administration. For example, as stated above, the NEA recently canceled the Challenge America grants, which provided funds to small arts organizations working with underserved communities. Instead, the NEA will focus on funding projects that celebrate the USA, which is in line with the Trump administration’s focus on “American First”.
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The potential funding freeze has profoundly disrupted cultural nonprofits. The uncertainty remains palpable, even though the administration has partially reversed its initial action, some funding already approved remains frozen. Further, the freeze has thrown future planning for some organizations into chaos.
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President Trump’s executive orders on Diversity, Equity, and Inclusion (DEI) in federal agencies and grants will have a lasting impact on nonprofit organizations across sectors. These orders direct federal agencies to eliminate internal DEI spending and review federal grants to ensure DEI programs are not being funded.
In other words, nonprofits that receive federal grants or contracts are now prohibited from implementing DEI-related programs. This has impacted museums across the country, especially in D.C., as the Smithsonian Institute national networks of museums closed their diversity offices.
However, these executive orders' full scope and vagueness remain uncertain as they face ongoing legal challenges in court.
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Although Congress may be seeking ways to reduce spending, the National Endowment for the Arts (NEA) and the National Endowment for the Humanities (NEH) collectively account for just 0.006% of the total $3.9 trillion U.S. budget. Arts organizations have a strong presence in Republican and Democratic districts, playing a vital role in local communities despite their relatively small budgets. This puts arts organizations in a stronger position than some of their nonprofit peers.
In addition, most art and cultural institutions receive funding through donations and individual gifts. Changes in tax law could significantly impact arts funding. For example, the Trump Tax Cuts and Job Act incentivizes individuals to file standard deductions where there is no tax advantage to donate to a nonprofit organization. As the administration moves forward on proposed tax changes, any such changes need to be monitored for impact to arts and culture organizations.
Opportunities for Philadelphia & Pennsylvania
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With the potential for significant funding reductions, the Pennsylvania General Assembly must explore ways to mitigate these losses. State funding for arts grants in Pennsylvania has remained stagnant for the past decade, and the Commonwealth ranks 33rd in per capita arts funding. Increased investment and legislative action will be essential to sustain and support Pennsylvania’s arts sector through the PA Council on the Arts and direct grants
As the birthplace of the United States, Pennsylvania will continue to play a significant role in the nation's 250th anniversary. While federal funding for the arts may face reductions, the Trump administration has emphasized its commitment to investing in the celebration’s planning via NEA and NEH programs.
Pennsylvania’s arts and culture organizations should proactively position themselves to take advantage of these national initiatives. By engaging with federal and state planning efforts, securing strategic partnerships, and demonstrating the arts' impact on historical and cultural storytelling, these organizations can position themselves to partake in the anniversary's commemorations.
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Even prior to the current threats to arts and culture funding, Mayor Parker signaled the importance of the arts and culture sector in her administration with the appointment of the City’s first Chief Cultural Officer, Valerie Gay. The next step in Mayor Parker’s commitments to the sector, include making the Chief Cultural Officer a permanent member of her cabinet through a ballot initiative and establishing a permanent department.
Philadelphia also supports the creative economy through the City’s Commerce Department, as it does all other significant sectors of the local economy. And, in preparation for 2026, the City is poised to invest in tourism organizations to ensure that Philadelphia shines bright on the national stage.
Conclusion
As the future of federal arts funding becomes more uncertain under the current administration, arts and culture organizations in Pennsylvania and Philadelphia must remain vigilant and adaptable. The potential for cuts to essential programs like the NEA and changes in policy could disrupt vital funding streams, making state-level investment and local initiatives even more crucial. By staying proactive, engaging with new opportunities like the 250th anniversary celebrations, and securing strategic partnerships, Pennsylvania’s arts community can continue to thrive despite federal challenges. Ultimately, collaboration and forward-thinking leadership will be key in ensuring the continued growth and success of the region’s vibrant cultural sector.
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