Recommendation 20250519-010: Recommendation for emergency response funding for arts and culture organizations impacted by federal grant terminations — original pdf

Recommendation

ARTS COMMISSION RECOMMENDATION 20250519-010 Date: May 19, 2025 Subject: Recommendation for emergency response funding for arts and culture organizations impacted by federal grant terminations Motioned By: Commissioner Houston Seconded By: Commissioner Schmalbach Recommendation Austin arts and cultural organizations have been deeply and negatively impacted by the recent terminations of previously awarded federal grants from the National Endowment for the Arts (NEA), the National Endowment for the Humanities (NEH), and the Institute for Museum and Library Services (IMLS). The Arts Commission recommends the City Council direct staff to determine the extent of the impact on local organizations and to establish an emergency fund to provide budget gap funding to impacted organizations within the next 90 days. Rationale In past two months, federal agencies including the NEA, NEH, and IMLS have terminated or rescinded previously awarded grants to organizations, artists, and scholars across the country. Austin’s organizations have been impacted, though the total extent of the impact has not been fully quantified. The Texas Commission on the Arts has been collecting data from impacted entities across the state and will be an important source of information for assessing the total immediate impact, as well as the potential ripple effects within the arts ecosystem and broader economy. Estimates from Austin Chronicle reporting specifically focused on NEA cuts, and information drawn from publicly accessible NEA databases suggest that more than 20 organizations, including the City of Austin itself, may have had NEA grants terminated. In some cases, terminated grants may have already been fully paid, while in others the termination leaves a large hole in an organization’s budget. In the worst cases, organizations may have incurred unreimbursed expenses on awards, as these grants operate on reimbursement or a maximum 30-day advance request. It will be important for City staff, with information from partners like Texas Commission on the Arts, to help determine the full extent of the damage of these terminations to design an appropriate response. The Arts Commission recommends the establishment of an emergency fund, similar to what was created to support organizations and artists during the Covid19 pandemic. The fund would be open by application to organizations that have been materially impacted by the federal terminations, who could then apply for some relief to mitigate the damage to their operations and, in the worst cases, their sustainability. We also ask the City Council and Mayor to leverage their significant influence to call on local foundations and corporate benefactors that could help support relief efforts for our arts and cultural organizations. While this is a devastating situation it is also an opportunity for Austin to demonstrate national leadership in how it values its arts and cultural producers. It is also important to acknowledge that these federal grant programs are highly competitive. Local organizations who have been granted funding from the NEA, NEH, and IMLS represent some of the highest levels of artistic excellence, scholarship, and community impact not just locally, but across the country. These organizations are critical not only for our local arts ecosystem, but for the greater economy of Austin, as well as the health of our civil society. 1 of 2 Vote: 7-0 For: Houston, Schmalbach, Anderson, Garza, Keys, Maldonado, Medicharla Against: None Abstain: Gray, Kracheni Absent: Zisman, Hussaini Attest: Jesus Varela 2 of 2