A last-minute pause in federal funding scheduled to go into effect at 5 p.m. Tuesday is causing widespread unease among Maryland arts groups and other nonprofits who don’t know whether they will ever receive money they were promised and — in some cases — have already spent.
The federal Office of Management and Budget issued a directive Monday night ordering federal agencies to temporarily pause “all activities related to obligation or disbursement of all Federal financial assistance.”
But the two-page announcement was worded in general terms. Attempts Tuesday by organization officials to clarify the intent and scope of the order appears to have only deepened the confusion.
It’s difficult to figure out exactly how much Maryland nonprofits stand to lose if federal funds are permanently frozen.
But the National Endowment for the Arts — which represents just one funding stream — calculated that in the past five years, it has distributed $45.2 million to local groups either directly or through the Maryland State Arts Council.
Potentially in the crosshairs are programs that planned to stage a classic Shakespearean comedy in rural Maryland communities, that planned to provide dance classes for kids with physical and developmental disabilities, and that provide after-school programs for children of working parents.
While the funding freeze might not necessarily result in these initiatives being cut, it could mean that they will undergo deep and potentially painful reductions.
“This is truly lifeblood funding for dozens of organizations in the city and state,” said Ellen Janes, executive director of the Central Baltimore Partnership, which aims to bring about the renaissance of Station North and other city communities.
She is particularly concerned about the $150,000 that her group receives to administer community development block grants that serve low- and moderate-income populations in Station North and nearby neighborhoods. Among the initiatives supported by the block grants are after-school programs and projects that repair older adults’ deteriorating homes.
“All these grassroots groups are operating on very tight budgets,” Janes said. “They don’t necessarily have the resilience to recover if funding is shut off or even delayed.”
Nicholas Cohen, executive director of the advocacy group Maryland Citizens for the Arts, fears that arts groups are especially vulnerable to losing out on federal funds because so many feature diversity, equity and inclusion programs.
The federal memorandum specifically lists DEI initiatives as running counter to a series of executive orders signed in the past eight days by President Donald Trump.
Cohen pointed out that “equity” isn’t limited to racial justice, but includes populations of all types outside the cultural middle ground, from older adults to rural communities.
“Arts groups pride ourselves on being safe spaces for everyone,” Cohen said. “This memorandum is a direct threat that warns us, ‘Don’t do that anymore.’ But, my organization is not backing down. The programs that we have that are rooted in racial justice and equity are not negotiable.”
Jeannie Howe, executive director of the Greater Baltimore Cultural Alliance, said that a funding freeze will cause additional hardships for her members because of the manner in which government grants are structured. The GBCA represents more than 300 artists and cultural organizations in the region.
“The thing about government grants is that you have to do the work first and ask for reimbursement later,” Howe said.
“The memorandum means that in a lot of cases, organizations wouldn’t get paid for work that they’ve already done — and some of these groups have spent millions of dollars. The impact of freezing funding across all sectors is going to be huge,” Howe said.
For example, the Chesapeake Shakespeare Company has been pledged $60,000 for its 2023-24 season and $50,000 for this year by the National Endowment for the Arts to stage its production of “The Comedy of Errors, Hon” in Charles County and on the Eastern Shore.
Though the show is described as being “mostly” written by William Shakespeare, it includes guest appearances by such iconic Maryland figures as horror author Edgar Allan Poe, baseball great Earl Weaver and former Gov. William Donald Schaefer.
Also at riskis a separate $25,000 grant from the NEA that would have paid for 1,500 students from the Baltimore City Public Schools to see the slapstick-laden farce.
To date, Chesapeake Shakespeare has not seen a penny of the $60,000 it has already spent, let alone the additional $85,000 it has been promised, according to company managing director Lesley Malin.
“We were hoping to expand our Welcome Wagon program from four weeks last year to eight weeks this year,” she said. “That probably means we’ll have to reduce that program to six weeks and visit nine fewer communities. To be cut off at the knees like that is really hard.”
The Maryland Youth Ballet is in a luckier position than most other nonprofits, according to executive director Alyce Jenkins.
The Silver Spring-based organization was to receive $10,000 to provide classes for kids with physical disabilities, including children in wheelchairs and walkers, and who can move only with the help of slings suspended from a system of ceiling tracks.
Jenkins wrote in an email that she is “still hopeful” that the funding will be reinstated later and added:
“Fortunately, the classes are not dependent on receiving the funds immediately as our fiscal year ends August 31st. But we are hoping to replace some of the specialized suspension vests we need, and they cost nearly $500 each.”
Cohen suspects that refusing to pay arts groups money that was promised for work that has already been completed may be illegal.
“Our concern is that this will probably end up going through the courts,” he said, “and that takes time.”
He pointed out that the Maryland State Arts Council has been anticipating that it will receive $995,800 from the NEA this year — funds that it had promised to local arts groups.
“That money is supposed to be disbursed by the end of June,” he said. “And what will replace it? Nothing.”
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