Public Funding for the Arts 2024
Mohja Rhoads & Nakyung Rhee, National Assembly of State Arts Agencies (NASAA)
Introduction
No single level of government can fully support the arts. The symbiotic relationship among federal, state, and local governments is essential for delivering the leadership, funding, and partnerships needed to sustain the arts nationwide.
The public funding ecosystem for the arts in the United States is supported by federal, state, and local governments. The National Endowment for the Arts (NEA) is funded through congressional appropriations. State Arts Agencies (SAAs) rely on legislative appropriations from state governments and federal funding. Local Arts Agencies (LAAs) receive funding from a mix of local, state, and federal sources. Together, these entities form a complementary system that provides grants and services to artists and cultural organizations across the nation.
A Year of Transition
In fiscal year 2024 (FY2024) federal, state, and local funding for the arts totaled $1.8 billion for an aggregate per capita investment of $5.44. The FY2024 breakdowns are as follows:
The NEA received a $207 million flat appropriation.
SAAs received $755 million in legislative appropriations representing a decrease of 22% from FY2023.
LAAs received an estimated $861 million in funds in 2024, representing an approximate 22% decrease from FY2023’s reported $1.11 billion.
The FY2024 fiscal landscape makes a transition in public arts funding as pandemic-era relief measures — the Coronavirus Aid, Relief, and Economic Security (CARES) Act and American Rescue Plan (ARP) Act — conclude and state budgets tighten. Following historic peaks during the recovery, public arts support demonstrated signs of normalization in FY2024. State arts agencies navigated a shift as pandemic relief funds diminished and states returned to traditional budgeting patterns. While the total appropriations for SAAs decreased by 22% from FY2023’s peak, funding levels remain significantly above pre-pandemic benchmarks. The NEA received the same level of funding from FY2023.
LAAs continue to play an essential role in the public arts funding ecosystem; however, comprehensive FY2024 data is unavailable. To address this gap, this article estimates the percentage change in LAA funding for FY2024 by aligning it with SAA trends, suggesting a 22% decrease in LAA funding during the same period. This approach is based on observed historic correlations between state and local arts funding.
Early projections for FY2025 suggest a continued normalization of government budgets and their effects on arts funding as pandemic relief funds fully phase out. Forecasts estimate a 7 % decrease in total appropriations from FY2024, though funding levels are expected to remain higher than pre-pandemic figures.
Trends over Time
Fiscal year 2024 marked a turning point as pandemic-era support wanes and states return to normalized budgeting practices. Total state legislative appropriations to SAAs equaled $755 million, a 22% decline from FY2023’s historic high. This decline reflected the conclusion of one-time allocations and pandemic relief funds in several large-budget states like California and New York. Despite this overall decrease, funding remains robust compared to pre-pandemic levels with thirty-nine states reporting increases in their appropriations from FY2023 and a median increase of 12.7%.
Pandemic-era aids continued to influence arts budgets into FY2024 as states spent their remaining relief funds. According to NASAA's reporting, 13 states allocated $221 million in FY2023 supplemental funding to state arts agencies, and 5 states earmarked $61 million for FY2024.[i]
FIGURE 1. Federal, State, and Local Government Arts Funding, Nominal and Inflation Adjusted Dollars, 2005-2024
Federal, state, and local government arts funding, nominal and inflation-adjusted dollars, 2005–2024. Inflation-adjusted figures are represented by corresponding lines below each source. Inflation adjustments are calculated using Bureau of Labor Statistics Consumer Price Index (CPI) figures with a base year of 2001.
At the federal level, the NEA maintained steady support at $207 million in FY2024. This consistent support has enabled continued investment in grants that foster a wide range of cultural projects and initiatives, aiding communities as they recover from the pandemic’s effects.
At the local level, this article estimates that LAAs are experiencing similar funding trajectories as SAAs and making measured adjustments. After reaching unprecedented levels in FY2023, surpassing $1.1 billion,[ii] local arts funding may face a period of normalization as well. (Figure 1)
The FY2023 high was bolstered by pandemic relief programs and local initiatives, such as the Paycheck Protection Program (PPP) and the Shuttered Venue Operators Grant (SVOG) from the CARES Act. As these programs wind down, budgets will likely stabilize.
However, many LAAs may sustain financial
stability relative to pre-pandemic levels,
buoyed by diversified funding streams.
Per Capita Investment
FIGURE 2. Federal, State, and Local Government Per Capita Appropriations, 2005-2024
Per Capita investment in the arts serves as a vital indicator for addressing how public funding meets the needs of a growing population. In FY2024, combined arts funding was estimated at $5.44 per person, reflecting a $1.44 decrease (20%) compared to FY2023. This total includes $0.62 in federal contribution, $2.25 from state appropriations, and $2.57 from local funding.
Adjusted for inflation and population shifts, the total per capita investment fell to $3.09 in FY2024, representing a 23% decrease in real dollars. (Figure 2) This decline underscores the impact of inflation and population growth on the capacity of public arts funding to meet demand. The resulting gaps in maintaining service levels amid rising costs highlight the need for sustained public investment to ensure access to arts and cultural opportunities across all communities.
Looking Ahead to FY2025
The arts funding landscape continues to evolve as the sector moves beyond the pandemic era. The fiscal outlook for FY2025 public arts funding reflects further trends of moderating government budgets amid economic normalization. After several years of extraordinary revenue growth and spending flexibility, states are transitioning to a more measured fiscal environment, with general funds projected to decline slightly by 0.3% in FY2025 (NASBO).[iii] The phasing out of temporary federal relief and ongoing inflationary pressures requires careful consideration of resource allocation.
SAAs are navigating this period of adjustment, with FY2025 projections showing an 8.1% decrease in appropriations. Despite this decline, the sustained higher baseline of arts funding compared to pre-2020 levels indicates relative stability for many state arts agencies entering FY2025. Twenty-six states are reporting increases for FY2025, with a median growth of 4.5%.[iv]
The NEA funding picture for FY2025 remains in development through the appropriations process. As of this publication, a continuing resolution is in place to fund the federal government through March 14, 2025. The new congress and new administration will negotiate the remaining FY2025 funding levels in advance of this deadline. Arts advocacy organizations continue to engage with policymakers, using data and research like this report to highlight the measurable impacts of modest federal arts investments in communities nationwide. NASAA and partners in the cultural advocacy space closely monitor congressional actions affecting the NEA and will publish updates as information emerges.
Given current data and circumstances, in FY2025, public funding for the arts is expected to experience about a 7% decrease in total funding, primarily due to the exhaustion of federal pandemic aid, economic tightening, and financial normalization. Nevertheless, it is notable that FY2025 funding levels remain 17% higher than pre-pandemic baselines in FY2020 (without adjusting for inflation).
The Federal, State, and Local Landscape – The importance of public funding
Public funding complements private and philanthropic funding to expand the reach of the arts. Private and philanthropic arts funding is often geographically concentrated[v] and sometimes influenced by financial return or sponsors' preferences. Public funding, however, reaches underserved geographic areas and communities that are not well served by the arts ecosystem. For instance, in 2021, 56% of the 25 largest foundation funders were based in California and New York,[vi] with 60% of grants directed toward recipients in the donor's state.[vii] Public funding, derived from taxpayer contributions, is accountable to all citizens, ensuring equitable access to cultural opportunities. This support addresses gaps in underfunded communities, rural areas, and smaller organizations,[viii] aligning public investments with community needs, especially in times of crisis.
Just as U.S. road, rail, and air systems require coordination between local, state, and federal governments, the arts benefit from integrated efforts across these levels. Local governments strengthen arts and culture at the community level, state governments support broader initiatives and infrastructure, and the federal government establishes national policies and cross-state initiatives. Together, these efforts ensure that the arts remain accessible, sustainable, and integrated into society, enhancing cultural vitality, social well-being, and economic prosperity nationwide.
Federal Funding – Supporting State, Local, and Private Investments
The National Endowment for the Arts (NEA) catalyzes public and private support through federal investments. Accounting for just 0.003% of the federal budget, the NEA allocates 40% of its grantmaking budget to state and regional arts agencies, with the remaining 60% distributed as direct grants to nonprofit organizations.[ix] NEA grants typically require a dollar-for-dollar cost/share match, ensuring that public funds stimulate additional investments in the arts.
For FY2024 appropriations, the NEA recommended 2,400 awards, with 60% directed to small- and medium-sized organizations (budgets up to $2 million).[x] These grants reached approximately 2,151 unique communities, including high-poverty areas (34%), rural and small metropolitan areas (19%), and underserved populations such as people with disabilities, institutionalized individuals, and veterans (26%). Over 24 million Americans attend live events supported by the NEA each year.
State Arts Agencies – Funding at the State Level
FIGURE 3. Geographical Distribution of GOS Grants by Large and Small Organizations, 2023
In FY2023—the most recent year with complete data that aligns with grantmaking data—state arts agency revenue surpassed $1.1 billion, reflecting a 20% increase from FY2022 and a 45% rise from FY2020. NEA contributions constituted 4% of this revenue, down 5.4 percentage points from FY2020, highlighting increased state-level contributions. State legislative appropriations accounted for 88% of state arts agency revenue, with other state revenues contributing an additional 7%.
From this revenue, state arts agencies awarded 33,848 grants nationwide. In FY2023, 31% of grant dollars provided general operating support (GOS) for arts organizations, with total GOS awarded dollars increasing by nearly 9% from FY2021.[xi] GOS grants, often unavailable through the NEA, philanthropic and private sources, provide unrestricted funding to grantees. In FY2023, state arts agencies reached 4,281 communities through operating support grants with a median award size of $13,000, which is an increase of $3,000 from the median award size granted in FY2021.
TABLE 1. SAA Grants Distributed by Census Tract Poverty Data, FY2019-FY2023
GOS grants are especially critical for small and rural organizations. (Figure 3) A study in California found that organizations with budgets over $10 million receive 70% of available resources from the nonprofit arts field and only 6% of these organizations are in rural communities.[xii] In FY2023, 75% of GOS grants went to organizations with budgets under $1 million, and 23% of those were located in rural areas.[xiii] However, in FY2023, funding for larger organizations increased by more than $23 million compared to FY2020, accounting for approximately 3% of total grant dollars. In contrast, funding for smaller organizations remained unchanged from FY2020 to FY2023. This shift indicates a growth in financial support for larger entities while smaller organizations maintained consistent funding levels.
State arts agencies prioritize funding underserved communities, with 37% of FY2023 grant dollars going to the highest poverty census tracts from FY2019 to FY2023 (representing 22% of the U.S. population). By contrast, 17% of funds went to the lowest poverty tracts, which represent 27% of the population. Median award sizes were largest for communities in high-poverty areas (Table 1).
Local Arts Agencies
FIGURE 4. SAA Support for LAA Activities, FY2019-FY2023
In addition to federal and state support, Local Arts Agencies (LAAs) play a crucial role in fostering arts vibrancy at the grassroots level.[xiv] They use a mix of public and private funds to deliver cultural programs tailored to local needs. In 2019, 30% of LAAs were municipal or county government branches, while 70% operated as private nonprofits.[xv] Local governments provided the largest share of LAA revenue (28%), followed by contributed income from private sources (27%), and then earned income (23%). State and federal funds accounted for 12% of LAA revenues.
In FY2023, state arts agencies invested over $64 million in LAAs through 1,700 grants.[xvi] Between FY2016 and FY2020, 1,497 grantees received joint funding from the NEA and state arts agencies, totaling $53 million. Most LAA awards during FY2019–FY2023 supported operating costs and regranting efforts to local communities.
All Three Levels of Government are Necessary
No single level of government can fully support the arts.
Of the approximately 91,000 local governments in the U.S., only 4,500 have local arts agencies,[xvii] many of which operate with small budgets or as volunteer organizations.[xviii] SAAs and the NEA play critical roles in filling these gaps, ensuring that all communities benefit from the arts. The NEA acts as an investment catalyst, fostering collaboration across federal, state, and local levels.
The symbiotic relationship among federal, state, and local governments is essential for delivering the leadership, funding, and partnerships needed to sustain the arts nationwide.
NOTES
[i] NASAA FY2024 State Arts Agency Revenues Report, https://nasaa-arts.org/nasaa_research/fy2024-state-arts-agency-revenues-report/
[ii] Americans for the Arts (AFTA)’ survey of the LAAs in 60 Largest U.S. Cities provided by AFTA in 2023
[iii] National Association of State Budget Officers Fiscal Survey of States Overview – Fall 2024 https://www.nasbo.org/reports-data/fiscal-survey-of-states
[iv] NASAA FY2025 State Arts Agency Revenue Report (upcoming February)
[v] https://nasaa-arts.org/wp-content/uploads/2017/04/WhyGovSupport-1-1.pdf
[vi] Lawrence, Steven (2024). Foundation Grants to Arts and Culture, 2021. In Grantmakers in the Arts Annual Arts Funding Snapshot 2024.
[vii] https://www.nature.com/articles/s41598-023-38815-1
[viii] https://nasaa-arts.org/wp-content/uploads/2017/04/WhyGovSupport-1-1.pdf
[ix] https://www.arts.gov/sites/default/files/NEA-Quick-Facts-two-pager-11.2024.pdf
[x] https://www.arts.gov/sites/default/files/NEA-Quick-Facts-two-pager-11.2024.pdf
[xi] https://nasaa-arts.org/nasaa_research/state-arts-agency-grant-making-facts-general-operating-support/
[xii] https://arts.ca.gov/press-release/california-arts-council-releases-report-on-statewide-access-to-arts-funding-with-focus-on-racial-and-geographic-equity
[xiii] https://nasaa-arts.org/nasaa_research/state-arts-agency-grant-making-facts-grants-by-organizational-size/
[xiv] https://culturaldata.org/local-arts-agency-funding-and-arts-vibrancy/overview/
[xv]https://www.americansforthearts.org/sites/default/files/pdf/2019/networks_and_councils/local_arts_network/profile/2019_LocalArtsAgencyProfile_FullReport_FINAL.pdf
[xvi] https://nasaa-arts.org/nasaa_research/state-arts-agency-grant-making-facts-local-arts-agencies/
[xvii]https://www.americansforthearts.org/sites/default/files/pdf/2019/networks_and_councils/local_arts_network/profile/2019_LocalArtsAgencyProfile_FullReport_FINAL.pdf
[xviii] https://nasaa-arts.org/wp-content/uploads/2017/04/WhyGovSupport-1-1.pdf
ABOUT THE AUTHORS
Mohja Rhoads is Research Director at National Assembly of State Arts Agencies (NASAA).
Nakyung Rhee is Research Manager at National Assembly of State Arts Agencies (NASAA).
