The National Endowment for the Arts (NEA) has begun withdrawing and cancelling grants to arts organisations across the US, just hours after President Donald Trump proposed eliminating the agency in his 2026 budget, The New York Times reported.

Arts groups received unexpected email notifications Friday night informing them that their current grants were being terminated or withdrawn, often without an opportunity for response.

According to the newspaper, the NEA stated it is revising its grantmaking priorities to focus on projects that "celebrate the 250th anniversary of American independence, foster AI competency, and empower houses of worship to serve communities and make America healthy again."

The impact has been immediate for cultural institutions across the country. Portland Playhouse lost a $25,000 grant critical for staging an August Wilson play, while Yale Repertory Theatre had a $30,000 grant for adapting a Zora Neale Hurston story terminated.

This action represents a continuation of efforts first attempted during Trump's initial term, though those were unsuccessful due to bipartisan Congressional support for the arts agency.

The NEA, established in 1965, operated with a 2024 budget of approximately $207 million and distributed over $163 million in grants last year, according to its financial report.

The administration's proposal aims to reduce what it calls "unnecessary governmental entities" to reduce waste.