Kentucky-based organizations, particularly those focused on supporting marginalized communities, are facing significant financial challenges after the federal government announced cuts to programs associated with diversity, equity, and inclusion (DEI). These cuts are affecting everything from arts initiatives to community support services, leaving groups with limited options and forcing many to look for new funding sources.
One of the organizations most impacted is the Americana World Community Center in Louisville, which has provided support to immigrants, refugees, and underserved individuals for over 30 years. The center’s future was thrown into uncertainty in February when a Facebook post revealed that the organization needed to raise $520,000 by June to avoid closure.
In a desperate call for help, Americana posted: “Americana is facing closure—we need your help. #SOSAmericana.” The organization quickly launched a fundraiser with a goal of raising $150,000 by the end of March, a target they surpassed in just a few weeks. The remaining funds are needed by June to ensure the center can continue providing crucial resources to its community.
The Americana Center is just one of many organizations across Kentucky struggling to stay afloat as federal funds for programs focused on diversity and inclusion are cut. For years, organizations like Americana have relied on grants such as the National Endowment for the Arts’ Challenge America grant to support programs that uplift marginalized communities.
In February, the National Endowment for the Arts (NEA) announced that the Challenge America grant would not be offered for fiscal year 2026. The grant, which had given $10,000 to more than 100 organizations annually, provided critical funding for programs that serve underserved communities. Americana received Challenge America funding for its fiber arts program, which helps refugee and immigrant women build skills, confidence, and entrepreneurial abilities by selling their craftwork online.
Americana Executive Director Emilie Dyer emphasized the importance of the fiber works program, stating, “Fiber works creates a sense of belonging in a newly established place that may be unfamiliar to them.” With the loss of Challenge America funding, Americana faces an uncertain future and must now find alternative sources of funding to continue offering such life-changing programs.
Other organizations, like the Kentucky Symphony Orchestra, have also felt the effects of these cuts. The orchestra, which serves northern Kentucky, used its Challenge America grant to support a free outdoor concert series that brings the community together through music and culture. James R. Cassidy, the orchestra’s founder and executive director, explained, “We believe bringing families together to experience quality culture and entertainment, at no cost, is a gift to our community.”
While Cassidy has learned to navigate financial challenges in the past, including during recessions and crises like 9/11 and the COVID-19 pandemic, the loss of funding related to diversity and inclusion initiatives has left organizations like the Kentucky Symphony Orchestra looking for new ways to stay afloat. Cassidy also emphasized the importance of not depending solely on one funding source, especially during uncertain times.
But for many groups whose work focuses on DEI, the impact goes beyond just federal funding. Shannon Woolley Allison, co-founder and co-artistic director of Looking for Lilith Theatre Company, expressed her concern about the long-term effects of anti-DEI legislation, like House Bill 4, which could potentially prevent groups from booking shows at public colleges and universities in Kentucky.
Looking for Lilith Theatre, which has received Challenge America funding in the past, uses their funding to bring performances like “Life Cycle of a Blackberry,” a one-woman show that tells the stories of Black women and girls in Appalachia. With funding sources becoming scarcer, Woolley Allison and her team are worried about how they will continue their mission without support. Woolley Allison shared, “It’s all of these different streams that are affected by this federal mandate that we can’t talk about these things anymore.”
Her co-founder, Jennifer Thalman Kepler, echoed these concerns, saying, “We couldn’t imagine changing the theatre company’s mission in order to get funding.” Despite the uncertainty, Thalman Kepler remains hopeful, believing that the support of the local arts community will help them survive this difficult period. She added, “Being in community and continuing to be in community together and with other artists and arts organizations in our city is how we keep going.”
As Kentucky’s DEI-focused groups continue to face financial challenges, it’s clear that the impact of funding cuts goes beyond just a loss of money. These changes threaten to dismantle the very programs that provide support, cultural enrichment, and a sense of belonging to some of the state’s most vulnerable populations.
For many organizations in Kentucky, the fight for survival is ongoing. With limited resources, they continue to lean on community support and the resilience of those they serve to keep their doors open and their missions alive. As they search for new funding avenues, these organizations remain committed to their goals of supporting underserved and marginalized communities—hoping for better days ahead.
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