• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
LeadershipDonald Trump

What Trump’s Proposed Spending Cuts Could Mean for the Arts Economy

By
Grace Donnelly
Grace Donnelly
Down Arrow Button Icon
By
Grace Donnelly
Grace Donnelly
Down Arrow Button Icon
January 19, 2017, 5:20 PM ET
New Met Breuer Museum Opens To Public In New York City
NEW YORK, NY - MARCH 18: Visitors view artwork on the opening day of the new museum The Met Breuer, an expansion of the Metropolitan Museum of Art on March 18, 2016 in New York City. The contemporary art space has taken over the Marcel Breuer designed Madison Avenue building that recently housed the Whitney Museum of American Art from 1966 until October 2014. (Photo by Spencer Platt/Getty Images)Spencer Platt — Getty Images

The Trump transition team may propose cuts to the federal budget that would reduce spending by $10.5 trillion over the next 10 years, the Hill reported Thursday.

Along with major funding cuts to the departments of Energy, Commerce, Transportation, Justice and State, the plan—which the Trump team has said is modeled after The Heritage Foundation’s Blueprint for Balance—would achieve this reduction in part by “targeting waste” like the Corporation for Public Broadcasting, The National Endowment for the Arts (NEA) and the National Endowment for the Humanities (NEH).

The NEA has already weathered significant budget cuts following the recession — their funding is 14 percent lower than in 2010, a $21.5 million drop to $146 million in 2015. The combined budgets of the NEH and NEA account for just over .002 percent of federal discretionary spending.

Both organizations administer grants to support the arts and humanities in each congressional district in the country.

The Bureau of Economic Analysis recently released areport that attempts to put a dollar amount on the arts economy and its impact. They found that arts and cultural production contributed more than $704 billion to the U.S. Economy — this accounts for 4.2% of the United States GDP and is greater than the contributions of the construction ($586.7 billion), transportation and, warehousing ($464.1 billion) industries.

us_ind_pct_gdp

More than 4.74 million people were employed in arts and culture economy as of 2013, according to the BEA study.

Since these jobs are funded by a combination of businesses, private donations, and government spending it’s hard to say how many employees would be impacted, but eliminating the 2,300 grants from the NEA and 882 projects funded by the NEH in 2015 would put a strain on the arts and culture economy.

“The announcement that this is even under consideration casts a sinister cloud over our vibrant national culture,” said Suzanne Nossel, executive director of PEN America in a statement on Thursday.

“This proposal sends shivers down the spine of all Americans who value research, scholarship, and creativity and who recognize the mortal blow that eliminating these vital agencies would strike at the heart of treasured sectors of our society,” Nossel said.

With massive exports of U.S. entertainment, the arts and culture sector is a win for American trade. The industry ran a trade surplus of $24.1 billion in 2013, according to the BEA.

Defunding the NEA would also cut already-scarce resources for the arts in underrepresented and low-income communities. According to the agency, 40% of the activities it supports take place in high-poverty neighborhoods.

About the Author
By Grace Donnelly
See full bioRight Arrow Button Icon

Latest in Leadership

NewslettersCIO Intelligence
Inside tractor maker CNH’s push to bring more artificial intelligence to the farm
By John KellDecember 10, 2025
54 minutes ago
Hillary Super at the 2025 Victoria's Secret Fashion Show held at Steiner Studios on October 15, 2025 in New York, New York.
NewslettersCEO Daily
Activist investors are disproportionately targeting female CEOs—and it’s costing corporate America dearly
By Phil WahbaDecember 10, 2025
2 hours ago
Zhenghua Yang
SuccessSmall Business
At 18, doctors gave him three hours to live. He played video games from his hospital bed—and now, he’s built a $10 million-a-year video game studio
By Preston ForeDecember 10, 2025
3 hours ago
AsiaCoupang
Coupang CEO resigns over historic South Korean data breach
By Yoolim Lee and BloombergDecember 10, 2025
5 hours ago
Databricks CEO speaking on stage.
AIBrainstorm AI
Databricks CEO Ali Ghodsi says his company will be worth $1 trillion by doing these three things
By Beatrice NolanDecember 9, 2025
12 hours ago
Arm CEO on stage at Brainstorm AI
AIBrainstorm AI
Physical AI robots will automate ‘large sections’ of factory work in the next decade, Arm CEO says
By Beatrice NolanDecember 9, 2025
14 hours ago

Most Popular

placeholder alt text
Economy
‘Fodder for a recession’: Top economist Mark Zandi warns about so many Americans ‘already living on the financial edge’ in a K-shaped economy 
By Eva RoytburgDecember 9, 2025
15 hours ago
placeholder alt text
Success
When David Ellison was 13, his billionaire father Larry bought him a plane. He competed in air shows before leaving it to become a Hollywood executive
By Dave SmithDecember 9, 2025
1 day ago
placeholder alt text
Banking
Jamie Dimon taps Jeff Bezos, Michael Dell, and Ford CEO Jim Farley to advise JPMorgan's $1.5 trillion national security initiative
By Nino PaoliDecember 9, 2025
17 hours ago
placeholder alt text
Uncategorized
Transforming customer support through intelligent AI operations
By Lauren ChomiukNovember 26, 2025
14 days ago
placeholder alt text
Real Estate
The 'Great Housing Reset' is coming: Income growth will outpace home-price growth in 2026, Redfin forecasts
By Nino PaoliDecember 6, 2025
4 days ago
placeholder alt text
Success
Craigslist founder signs the Giving Pledge, and his fortune will go to military families, fighting cyberattacks—and a pigeon rescue
By Sydney LakeDecember 8, 2025
2 days ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.