The Future of NEA Funding for U.S. Documentary Film Nonprofits Remains in Limbo After Anti-DEI and “Gender Ideology” Executive Orders

In the weeks since the National Endowment for the Arts announced major changes to its application criteria, many nonprofits across the country have been anxiously awaiting clarity regarding what this might mean for their prospective Fiscal Year 2026 grants. In particular, in recent weeks nonprofit managers and filmmakers are scrutinizing how the NEA applies two recent Executive Orders aimed at shutting down DEI and LGBTQ+ programs.

So far, the only respite is the NEA’s clarification that nonprofits previously awarded the Challenge America grant—which provided funding to underserved communities and was cancelled for FY26—are allowed to apply for other NEA funding for FY26. 

In a February 18 webinar hosted by NEA staffers, director of arts education Michelle Hoffmann stated that Challenge America has simply been rolled into its broader Grants for Art Projects (GAP) program, which in turn allows for a larger award. Challenge America grants were capped at 10 grand, while those provided under GAP can exceed that limit. 

“Application loads have nearly doubled, but staff hasn’t,” Hoffman elaborated. “Leadership asked us what changes could be made this year to help the team work more effectively and efficiently. Rolling Challenge America into GAP [was] one of the staff’s recommendations.”

Moreover, participation in America250, which seeks to award “​projects that celebrate the nation’s rich artistic heritage and creativity by honoring the semiquincentennial of the United States of America” (and seemingly replaced Challenge America) is not mandatory for prospective GAP fundees applying during this award cycle. 

The parameters for America250 were also expanded. “Projects could include activities in 2026 to 2027 that examine the work of American artists, present or create art recognizing the milestone, or undertake educational activities or related programming,” offered Hoffmann. “We also want to emphasize again that your GAP application does not need to include America 250 activities to be eligible.” 

Hoffmann noted that the NEA hopes to “encourage applicants to submit projects that originate from, or are in collaboration with, historically Black colleges and universities, tribal colleges and universities, American Indian and Alaska Native tribes, Hispanic serving institutions, Asian American and Pacific Islander communities, and organizations that support the independence of people with disabilities.” These guidelines are continuances of NEA funding priorities in recent years.

These project guidelines to collaborate with institutions that serve racial, ethnic, and disability audiences may be in conflict with the  NEA assurance of compliance, which is required from all NEA grant recipients to accept their awards. The compliance has been updated with pertinent present presidential executive orders, including Executive Orders 14151 and 14168, which target DEI initiatives and the promotion of “gender ideology.” Projects or organizations that utilize NEA funding for either of these purposes are at risk of liability under the False Claims Act, which could carry substantial financial penalties. 

Three days after the webinar, on February 21, the United State District Court for the District of Maryland issued a preliminary injunction regarding the executive order that required federal agencies to terminate all equity-related grants or contracts. The court held that the language around violation of anti-discrimination laws was too vague and potentially violated the right to free speech under the First Amendment. 

As of March 3, a government motion for a stay to appeal this injunction has been denied, meaning that the NEA cannot deny grants for those that adhere to DEI programs so long as the injunction remains in effect. 

Even so, nonprofits looking to apply for the forthcoming March 11 deadline may still want to be wary of the eventual outcome of this executive order. 

“It's possible that the injunction against certification will be lifted, a new EO could be issued that better defines the standards, or Congress could act to embody the spirit of these provisions in federal law,” Devos Institute president Brett Egan advised in a webinar last Monday. “Considering the financial and potential reputational risk of False Claims Act liability, we need to keep thinking about whether or not compliance is possible, even where it might not be required in the immediate moment.” 

This rings particularly true as it pertains to the executive order prohibiting the promotion of “gender identity” in government programs. Application of this EO would deny trans and nonbinary identities recognition by all federal programs, and for which there is no injunction with respect currently in effect. Egan also clarified this point in the Devos webinar. “There are pending cases in federal court, but no rulings have been issued to date related to challenges regarding the language which redefines biological sex and rescinds gender identity recognition,” he said.

On March 6, 2025, the ACLU of Rhode Island filed a lawsuit on behalf of Rhode Island Latino Arts, National Queer Theater, The Theater Offensive, and Theatre Communications Group against the National Endowment for the Arts, seeking a preliminary injunction before the NEA's grant submission deadline this month. 

In the film and media arts category, certain nonprofits have decided to preemptively comply with Trump’s anti-DEI mandate.

“In an effort to preserve critical funding, we have had to make the devastating decision to ‘scrub’ all DEI language from our NEA-funded programs,” says Eugene Park, executive director of Full Spectrum Features, a social justice-focused production and distribution company based in Chicago. “We are now preparing ourselves for what seems like an inevitability—the complete loss of all of our federal funding, not only from the NEA, but also the NEH, NPS, etc.”

Trans filmmaker Jules Rosskam, whose 2024 feature Desire Lines was produced by FSF and received the NEXT Special Jury Award at Sundance, believes that this is the moment for outright resistance. 

“This is precisely the moment when we need federal employees and others whose operations are tied to federal funding to stand up and say no,” asserted Rosskam. “The Trump administration will, with greater and greater acceleration, see just how far they can push their anti-trans, anti-black, anti-immigrant agendas.” 

Certain nonprofits are declaring that they will not shift their stated missions. 

“We remain committed to fulfilling our mission, with or without NEA funding,” leadership from Chicken & Egg Pictures, a Brooklyn-based nonprofit that supports women and gender-expansive documentary filmmakers, collectively stated in an exclusive comment. “There are so many who are eager to do the right thing and support artists who are being further marginalized in this moment. We’re honored to be in their company.” 

The Macarthur Foundation is among the nonprofits that have recently vowed to increase support. For the next two years, it will give away 6% of its endowment as opposed to the 5% baseline required by the IRS. In a February 25 blog post uploaded to the Foundation’s website, Macarthur President John Palfrey has called on other major foundations to match this increase. 

Despite the general state of uncertainty gripping the entire nonprofit sphere and the communities they serve, there remains a sensibility amidst the queer community that even if their projects might not be eligible for future funding from the NEA and beyond, their narratives will not be erased so easily.  

“In the very near past, it would have been a fool’s errand for trans filmmakers to even attempt to seek resources through philanthropy, traditional financing, or government grants,” says Arno Mokros, queer film producer and coordinator of NewFest’s New Voices grant. “We have long supported one another, finding ways to tell our stories through mutual aid, DIY movements, and other community support models.” In lieu of a clear path forward, now may be as good a time as any to imagine alternative models. 

But there are arguments for continuing to engage with the NEA.  Barbara Twist, executive director of Film Festival Alliance, recommends that members continue applying for NEA grants and working with the agency in other capacities. 

“For those who are not in an active grant cycle, we strongly encourage you to sign up to be Panelists for the NEA Grant Review process,” writes Twist. “It is an excellent way to understand the review process and to provide…insight on the priorities and needs of the festival field.”

Above all, collectively imploring the NEA to shed insight on these recent changes will illuminate what the future of the nonfiction film landscape and beyond might look like. “Hopefully through repeated inquiry, we can gain clarity and specificity,” Twist concludes. 

Natalia Keogan is a critic and journalist based in NYC. Her bylines include Filmmaker magazine, A.V. Club, Reverse Shot, and Paste, amongst others.