Last week was a whirlwind. A sudden freeze on federal funding, coupled with major museums acting on new executive orders, has left folks reeling. The uncertainty in the sector is palpable: What does this mean going forward?
While we don’t have all the answers yet, here’s an overview of what we do know, and how you can prepare.
What happened?
On January 27, the U.S. Office of Management and Budget (OMB) issued a memo about pausing the distribution of all federal financial assistance while agencies conduct a review. This includes grants that support museums, educational programs, preservation projects, and research.
While the administration says the pause is temporary, no one knows how long it will last or if certain funding streams will be permanently cut.
The announcement was met with immediate pushback, leading to a federal judge temporarily blocking the order. Then, on January 29, the White House rescinded the memo, but notably not the freeze itself.
White House press secretary Karoline Leavitt posted on X, “This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo. Why? To end any confusion created by the court’s injunction. The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented.”
In a separate statement, Leavitt added, “In light of the injunction, OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage. The Executive Orders issued by the President on funding reviews remain in full force and effect and will be rigorously implemented by all agencies and departments. This action should effectively end the court case and allow the government to focus on enforcing the President’s orders on controlling federal spending. In the coming weeks and months, more executive action will continue to end the egregious waste of federal funding.”
Adding to the chaos, on January 31, a second federal judge sided with a coalition of 22 states and temporarily blocked the funding freeze, as well. That makes two injunctions against the directive.
What this means for museums
Of course, many institutions rely on federal funding to keep the lights on and help provide programs to their communities. With grant payments stalled, projects may be delayed or even canceled. Smaller museums with tighter budgets could feel the impact the hardest; larger institutions may need to rethink their long-term plans.
There’s also growing concern over how new executive orders targeting diversity, equity, and inclusion (DEI) initiatives will affect museum programming. As reported by AAM, some museums have already faced scrutiny for their DEI efforts in the past, and these new policies could put funding for more of these museum programs at risk. The National Gallery of Art and the Smithsonian Institution made headlines after making moves to end their programs devoted to diversity and equity.
What you can do right now
While we await more clarity on all this, there are some steps you can take to prepare:
- Follow updates from your museum associations and nonprofit sector organizations. They’re working to decode what these changes mean for the museum world.
- Not for nothing, but one way to stay informed is our Museum 411 newsletter — we’ll continue to share news, strategies, even relevant webinars that can help you navigate these changes.
- If you rely heavily on federal grants, start contingency planning for potential gaps.
- It’s time time to remind local supporters and donors about the value your museum brings. Grassroots fundraising and increased attention on local engagement could help cushion the impact.
- Contact your representatives and share how these funding freezes affect your institution and the communities you serve. Museum advocacy groups are already mobilizing, and your voice matters. Museum Advocacy Day is right around the corner, and it’s shaping up to be a big one.
- Whenever we discuss the future of museums, we talk about an increased emphasis in collaboration. This current situation is just one more reason why collaboration will be essential going forward. Working together — through shared programming, pooled resources, joint advocacy efforts — can help weather the storm.
Right now, there are more questions than answers. The best thing you can do is stay flexible, stay informed, and support each other.
Additional recommended reads:
AASLH Update on the Federal Funding Pause
Impact of Executive Orders and Pause on Disbursement of Federal Funds
Navigating This Moment Together: Advocacy, Action, and Resources
