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How the NEA Was Born

On September 29, 1965, Lyndon Johnson signed a law putting the federal government in the grant-making business for art, and a Republican appointee named Nancy Hanks nearly made it popular.

By Oliver Grant · June 16, 2026 · 7 min read
Arts administrators reviewing grant applications at a community table
AI-generated photorealistic reconstruction — not a documentary photograph.

On September 29, 1965, President Lyndon Johnson signed the National Foundation on the Arts and the Humanities Act, creating the National Endowment for the Arts with a first-year budget under $3 million. Within a dozen years, under chair Nancy Hanks, the agency's appropriation had grown past $100 million, and the idea that Washington should help fund theater companies, orchestras, museums, and poets had become, briefly, one of the least controversial things the government did.

Why did the United States wait until 1965?

Because the Depression-era experiments had been allowed to die and the Cold War revived the question. The WPA arts projects closed in 1943 amid congressional hostility, and for two decades federal arts funding was politically unthinkable. What changed the climate was Soviet cultural diplomacy: when the USSR sent its Bolshoi and its violinists abroad as proof of systemic superiority, American officials noticed that the free world's leading cultural export was Hollywood, and not everyone counted that as a win. The State Department began sending jazz musicians and orchestras abroad in the 1950s, and the Kennedy administration's 1963 report by arts consultant August Heckscher recommended a national arts foundation weeks before Dallas.

Johnson inherited the recommendation and liked it, for reasons that fit his particular politics. The Great Founding logic of the Great Society held that civilization, like electricity, deserved rural extension, and the 1965 act framed art as infrastructure: the new endowment would spread cultural production beyond the handful of coastal cities where it concentrated. The bill moved through a Congress occupied with Vietnam, Medicare, and voting rights, passed with large majorities, and was signed at a White House ceremony attended by the cultural figures of the moment, a rare gathering in which Washington treated artists as constituent rather than decoration.

What did the Endowment actually do?

It made grants, mostly small, mostly matched, and mostly transformative for the recipients. The 1966 appropriation was about $2.9 million; the agency funded its first fellowships to individual artists in 1967 and built programs for theater, dance, literature, music, museums, and arts education as budgets grew. The mechanism that mattered most was the challenge grant and matching structure: federal dollars came in modest fractions but legitimized local fundraising, so a regional theater or a Black dance company could leverage a federal seal into municipal and foundation money at multiples of the original sum.

The institutional map of American art outside New York is, to a remarkable degree, an NEA product. The agency's program of seeding state arts agencies, which now exist in every state and territory, pushed decisions outward from Washington and built a permanent constituency for public funding. By the 1980s, the Endowment's logo on a program was ordinary in cities that had never had a professional orchestra before 1965. The agency also ran the honors that defined public recognition of artists, beginning with the National Heritage Fellowships for traditional artists in 1982 and the National Medal of Arts, first awarded in 1985.

What did the first grants look like?

Modest checks with outsize consequences. Under first chairman Roger Stevens, a Broadway producer and Democratic fundraiser, the agency's earliest programs funded institutions: a grant to the American Ballet Theatre, support for regional theater tours, and planning money for the state arts agencies the act required each state to establish to receive partnership funds. The fellowship program for individual artists began in 1967, awarding direct grants of a few thousand dollars, sums that now read as symbolic but then covered a year of rent and materials for painters, poets, and composers who had never held institutional support.

The early list of recipients has become a running exhibit of the program's judgment, since it includes artists who were then unknown and are now canonical, alongside names that faded. Living as it did under constant audit, the agency documented everything, and its annual reports from the late 1960s and 1970s read like an annotated census of American cultural ambition: an Appalachian crafts cooperative next to a modern dance company next to a public television station's local music series. The scale was never large, averaging a rounding error of the federal budget, which was precisely the argument Hanks made for it.

Related stories: How the Federal Art Project Painted America · When Small Towns Built Opera Houses.

Who was Nancy Hanks, and why does she matter?

A Republican arts administrator from North Carolina by way of Duke, and the Endowment's second chair, appointed by Richard Nixon in 1969 and serving until 1977 across two administrations of her own party and then a third of the other. Hanks took over an agency with a budget near $8 million and left it above $100 million, a growth curve that made the NEA, for a moment, the largest arts patron in the country's history outside the WPA. She did it by refusing drama, courting Congress member by member, and framing art funding as community development in districts of every political character.

Hanks's tenure built the political architecture as well as the budget. She strengthened the state agency partnerships, appointed peer panels of working artists to decide grants, and kept the agency's profile deliberately dull, on the theory that controversy would kill appropriations faster than excellence would save them. She died in 1983, and the federal office building that now houses the Endowment in the restored Old Post Office Pavilion in Washington was named for her, which means the agency she built works, literally, inside her monument.

How did the consensus fall apart?

Slowly, then in 1989. The Endowment had always funded individual artists whose work some member of Congress would dislike, and through the 1980s the list of contested grants grew. In 1989, controversies over photographs by Andres Serrano and Robert Mapplethorpe turned the agency's modest grants into a national argument about obscenity and public money; Congress, under pressure, restricted the agency's procedures in 1990, and in 1996 it eliminated grants to individual artists almost entirely and cut the budget by roughly a third. The budget never recovered its inflation-adjusted peak, which had come near the end of the 1970s.

What survived the culture wars was the quieter, less photogenic machine: state partnerships, institutional grants, arts education programs, and military base arts projects, funded at a fraction of the per-capita level of most peer countries. The debate the 1965 act settled, whether the federal government should fund art at all, is periodically reopened by budget proposals that zero out the agency, and periodically closed again by the appropriations process, which has so far declined to do so. The Endowment's history reads as an argument about what Americans think culture is for: national prestige, community flourishing, individual genius, or an indulgence the market should sort out on its own.

Why does the founding still matter?

Because the 1965 act made a claim no earlier American law had made: that cultural life is a public good requiring public investment, in Peoria as in Manhattan. Everything since, from the state arts agencies to public broadcasting's arts programming to the current arguments over declining arts attendance, happens inside the framework Johnson signed into law. The Endowment's critics and defenders agree on one thing, that its creation was a genuine change in the country's operating assumptions. Fifty-plus years of grants, scandals, budgets, and buildings later, the assumption stands, dented and perennially re-litigated, which in American cultural politics counts as durability.

Frequently Asked Questions

When was the National Endowment for the Arts created?
The NEA was created by the National Foundation on the Arts and the Humanities Act, signed by President Lyndon Johnson on September 29, 1965. Its first-year appropriation was about $2.9 million. The same law created the National Endowment for the Humanities, and the two agencies began operating in 1966 under first chair Roger Stevens.
Who was Nancy Hanks?
The NEA's second chair, appointed by President Nixon in 1969, who served until 1977. During her tenure the agency's budget grew from roughly $8 million to over $100 million, state arts agencies were strengthened in every state, and peer panels of artists decided grants. The Old Post Office building housing the NEA in Washington was named in her honor after her death in 1983.
Why was the NEA controversial in the 1990s?
Contests over grants for works by Andres Serrano and Robert Mapplethorpe erupted in 1989 into a national argument about obscenity and public funding. Congress restricted the agency's procedures in 1990 and eliminated most grants to individual artists in 1996, cutting the budget by about a third. The NEA's budget has never regained its late-1970s peak in real terms.
Why did the U.S. not fund the arts before 1965?
New Deal arts programs like the WPA Federal Art Project ended in 1943 amid congressional hostility, and federal arts funding remained politically impossible through the 1940s and 1950s. Cold War cultural competition with the Soviet Union, plus a 1963 Kennedy-era report by August Heckscher, revived the case for a national arts foundation, which Johnson signed into law in 1965.

Sources

  1. National Endowment for the Arts