At least 14 Austin-based arts organizations are facing the termination of previously approved grants from the National Endowment for the Arts (NEA), effective May 31, due to sweeping federal budget cuts implemented by the Trump administration. This action is part of a broader initiative to reduce diversity programs and reevaluate the teaching of U.S. history.

Among the affected organizations are the Zach Theatre, Grammy-winning vocal group Conspirare, the Austin Film Festival, American Short Fiction magazine, Latinitas, and the African drum and dance troupe Lannaya. In February, the administration announced a shift in funding priorities, favoring arts organizations that commemorate the 250th anniversary of the Declaration of Independence. Leaders in the Austin arts community, such as Zach Theatre’s managing director Jamie Herlich, have expressed concern over the detrimental impact on the city's cultural landscape. Affected organizations were given seven days to appeal the decision, with appeals due by Friday, May 9.

Established by Congress in 1965, the NEA is the largest funder of the arts in the United States, supporting nonprofit organizations, public agencies, universities, and individual artists through grants for projects in arts education, creative writing, and community engagement. In fiscal year 2022, the NEA awarded over 2,300 grants totaling approximately $117 million across all 50 states. Grants require matching non-federal funds and are reviewed by expert panels before final approval by the NEA chairman.

In January 2025, President Donald Trump signed Executive Order 14151, titled "Ending Radical And Wasteful Government DEI Programs And Preferencing," directing the termination of all mandates, policies, programs, preferences, and activities related to diversity, equity, inclusion, and accessibility within federal agencies. This order also mandated that agencies report a list of all employees in DEI and "environmental justice" positions to the Office of Management and Budget (OMB) director within 60 days.

Subsequently, the NEA announced it would prioritize funding for projects aligned with newly defined goals, including support for Historically Black Colleges and Universities (HBCUs), disaster recovery, military and veterans programs, AI education, and the "Make America Healthy Again" initiative. The NEA, along with the National Endowment for the Humanities (NEH), also committed to supporting Trump's "National Garden of American Heroes" project.

The termination of NEA grants has significant implications for Austin's arts community. Organizations like the Zach Theatre and Conspirare have relied on NEA funding to support their programs and operations. The sudden withdrawal of these funds threatens their ability to continue offering performances and educational initiatives. Jamie Herlich, managing director of Zach Theatre, expressed concern over the detrimental impact on the city's cultural landscape.

The administration's actions have sparked legal challenges and widespread concern among arts organizations. A U.S. District Judge permitted the Trump administration to condition NEA grants on organizations certifying they will not promote "gender ideology," following an executive order by President Trump that mandates federal recognition of only two sexes and prohibits the use of federal funding to support gender ideology. Several arts and theater groups, supported by the American Civil Liberties Union, filed a lawsuit challenging the policy, arguing it forces self-censorship and violates First Amendment rights and the 1965 National Foundation on the Arts and the Humanities Act.

Arts organizations have expressed a "chilling effect" due to the end of DEI initiatives from federal agencies. Jamie Bennett, interim co-CEO of the advocacy group Americans for the Arts, noted that arts groups are wondering how applications to celebrate events like Black History Month would be received under the new guidelines.

This is not the first time the NEA has faced threats of defunding. In 2017, during President Trump's first term, there were proposals to eliminate the NEA, which were met with significant opposition from the arts community and ultimately did not pass. The current situation differs in that the administration has taken concrete steps to rescind existing grants and impose new funding priorities, leading to immediate impacts on arts organizations.

As the deadline for appeals approaches, Austin's arts community faces an uncertain future, grappling with the immediate and long-term effects of these federal funding cuts.