District Of Columbia 2025-2026 Regular Session

District Of Columbia Council Bill B26-0130 Compare Versions

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22 OFFICE OF CHAIRMAN PHIL MENDELSON
33 COUNCIL OF THE DISTRICT OF COLUMBIA
44
55 Statement of Introduction
66
77 “Stability and Equity in Arts Grantmaking Amendment Act of 2025”
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99 Today I am introducing the Stability and Equity in Arts Grantmaking Amendment Act of
1010 2025. This bill would create statutory stability in grantmaking at the Commission on the Arts and
1111 Humanities in its General Operation Support (GOS) grant program. Between the Fiscal Year 2024
1212 and Fiscal Year 2025 General Operation Support grant cycles, 108 out of 166 GOS grantees saw
1313 a reduction in the award amount – 16 of which saw a reduction of 60% each – despite the overall
1414 GOS budget staying nearly identical between the two cycles. Several of the grantees not only
1515 received a cut, but the cut is contrary to the guidance provided by the Arts Commission last year
1616 which stated that its policy is to ensure that grantees will not experience more than a $10,000
1717 fluctuation in their award amount, and that certain funding ranges would be tied to organizations
1818 with certain annual expenses. The Commission ignoring its own policies, which are not in law,
1919 can cause tremendous instability, especially for mid- size and smaller organizations.
2020
2121 To address this, the Stability and Equity in Arts Grantmaking Amendment Act of 2025
2222 would establish that GOS award amounts should be proportionally tied to organizational expenses
2323 – a policy already used in practice by the Arts Commission. However, the bill does this in an
2424 equitable manner whereby base award amounts are based on an organization’s proportional annual
2525 expenses. Since larger, more well -funded organizations have an outsized share of expenses as
2626 compared to smaller organizations, the legislation places a cap on the maximum award amount s,
2727 regardless of an organization’s proportional share. Moreover, the bill places a floor on grant
2828 awards for organizations to ensure adequate funding to support small and mid-sized organizations.
2929
3030 The bill also places new guardrails on what organizations are eligible for grants to ensure
3131 that incredibly large national arts institutions with budgets in excess of $100 million aren’t being
3232 awarded grants that are better targeted to our locally anchored arts organizations. This bill would
3333 also clarify that awardees must have an active Board of Directors, have more than half of their
3434 activities and programs occur within the District, and have a primary mission of focusing on the
3535 arts, arts education, or the humanities. Moreover, the bill would set clear criteria for consideration
3636 of supplemental GOS award funding including the quality of the organization’s programming or
3737 services, the charitable or philanthropic work of organizations in lifting up other artists and
3838 organizations, and encouraging diversity in organizational governance and administration.
3939
4040 Enshrining many of the equity goals built into the current Commission policies will ensure
4141 that future grants are awarded on an equitable basis. Moreover, given the uncertain future of
4242 revenue dedicated to the Arts Commission , it is more important now than ever to ensure that
4343 guardrails are built into the law to ensure stability and equity to support our arts organizations. 1
4444
4545 _________________________ 1
4646 Chairman Phil Mendelson 2
4747 3
4848 4
4949 A BILL 5
5050 6
5151 _______ 7
5252 8
5353 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 9
5454 10
5555 _______________________ 11
5656 12
5757 To amend the Commission on the Arts and Humanities Act to provide for stability and equity in 13
5858 the awarding of General Operating Support grants to arts organizations, and to remove 14
5959 obsolete provisions of law. 15
6060 16
6161 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 17
6262 act may be cited as the “Stability and Equity in Arts Grantmaking Amendment Act of 2025”. 18
6363 Sec 2. The Commission on the Arts and Humanities Act, effective October 21, 1975 19
6464 (D.C. Law 1-22; D.C. Official Code § 39-201 et seq.), is amended as follows: 20
6565 (a) Section 4 (D.C. Official Code § 39-203) is amended as follows: 21
6666 (1) Subsection (a-1) is amended to read as follows: 22
6767 “(a-1)(1) The Commission shall consist of 12 members appointed by the Mayor, with the 23
6868 advice and consent of the Council, in accordance with section 2(e)(32) of the Confirmation Act 24
6969 of 1978, effective March 3, 1979 (D.C. Law 2-142; D.C. Official Code § 1-523.01(e)(32)). 25
7070 “(2) Each member appointed to the Commission shall be a District resident who 26
7171 has displayed an interest or an ability in the arts or humanities or has been active in the 27
7272 furtherance of the arts or humanities in the District of Columbia. 28
7373 “(3) When appointing members to the Commission, the Mayor shall give due 29
7474 consideration to recommendations made by representative civic, educational, and professional 30
7575 groups concerned with the arts, humanities, and culture, and shall maintain reasonable 31 2
7676
7777 representation of all the various geographic areas and neighborhoods within the District of 32
7878 Columbia.”. 33
7979 (2) Subsection (b) is amended to read as follows: 34
8080 “(b) All members of the Commission shall be appointed to 3-year terms that shall 35
8181 commence on July 1 in the year of appointment and expire on June 30 of the 3rd year.”. 36
8282 (3) Subsection (b-1) is repealed. 37
8383 (b) Section 6(c-1) (D.C. Official Code § 39-205(c-1)) is amended to read as follows: 38
8484 “(c-1) The Commission shall allocate the annual budget as follows: 39
8585 “(1) Not more than 20% of the annual budget shall be allocated for administrative 40
8686 costs. 41
8787 “(2) The funds remaining after the allocation described in paragraph (1) of this 42
8888 subsection shall be allocated for grants for the following purposes: 43
8989 “(A) 12.0% for grants to fund capital projects in support of eligible arts 44
9090 and humanities organizations; 45
9191 “(B) 50.0% for General Operating Support grants to eligible arts and 46
9292 humanities organizations to be administered pursuant to section 6e; 47
9393 “(C ) 22.0% for other art grant programs established by the Commission; 48
9494 and 49
9595 “(D) 4.0% the for the Humanities Grant Program administered by 50
9696 HumanitiesDC. 51
9797 “(E) 12.0% for a large capital grant program to be administered pursuant 52
9898 to section 6d.” 53
9999 (c) Section 6c (D.C. Official Code § 39-205.03) is repealed. 54
100100 (d) A new Section 6e is added to read as follows: 55 3
101101
102102 “Sec. 6e. General operating support grants program. 56
103103 “(a) There is established within the Commission a General Operating Support Grants 57
104104 program to provide subgrants to eligible organizations for offsetting the operating expenses of 58
105105 eligible organizations. 59
106106 “(b) For purposes of this section, the term “organization average expenses” shall mean 60
107107 the organization’s expenses averaged from its two most recent Annual Form 990 filings 61
108108 “(c) Eligibility for a general operating support grant shall be limited to organizations that: 62
109109 “(1) Are incorporated as a nonprofit with a federally designated tax-exempt status 63
110110 under section 501(c)(3) of the United States Internal Revenue Service (IRS) code and have a 64
111111 principal business office address within in the District of Columbia, not including a Post Office 65
112112 Box, as evidenced by the organization’s most recent Internal Revenue Service Annual Form 990 66
113113 filing; 67
114114 “(2) Have provided the organization’s two most recent Internal Revenue Service 68
115115 Annual Form 990 filings with its grant application; 69
116116 “(3) Have less than $100 million in organization average expenses; 70
117117 “(4) Have a primary mission focusing on the arts or humanities disciplines such 71
118118 that the majority the organization’s activities are related to the arts, arts education, or the 72
119119 humanities; 73
120120 “(5) Have an active Board of Directors ; and 74
121121 “(6) Have at least 51% of its activities or programs occur within the District of 75
122122 Columbia. 76
123123 “(d)(1) The base general operating funding amount for each eligible organization shall be 77
124124 calculated as follows: 78 4
125125
126126 “(A) Determining the aggregate sum of all eligible organization average 79
127127 expenses; 80
128128 “(B) Dividing each individual organization’s average expenses by the sum 81
129129 determined in subparagraph (A); and 82
130130 “(C) Multiplying the amount calculated in subparagraph (B) by 2. 83
131131 “(2) If the base general operating funding amount calculated under paragraph (1) 84
132132 for an organization is more than one percent (1.0%) of the annual amount budgeted pursuant to 85
133133 Section 6(c-1)(2)(B) of this act, the base funding amount for such organization shall be equal to 86
134134 such one percent (1.0%) amount and such organization shall not be allocated additional funds 87
135135 pursuant to subsection (e). 88
136136 “(3) If the base general operating funding amount calculated under paragraph (1) 89
137137 for an organization is less than three-quarters of one-tenth percent (0.075%) of the annual 90
138138 amount budgeted pursuant to Section 6(c-1)(2)(B) of this act, the base general operating funding 91
139139 amount for such organization shall be equal to such three-quarters of one-tenth percent (0.075%), 92
140140 provided that for an organization where the base general operating funding amount calculated 93
141141 pursuant to this paragraph exceeds 50% of the organization average expenses, such organization 94
142142 shall be awarded a base general operating funding amount equal to 50% of the organization 95
143143 average expenses and such organization shall not be allocated additional funds pursuant to 96
144144 subsection (e) of this section. 97
145145 “(e)(1) Funds budgeted pursuant to Section 6(c-1)(2)(B) of this act remaining after 98
146146 allocating base funds pursuant to subsection (d) of this section shall be awarded as supplemental 99
147147 general operating funding amounts. 100
148148 “(2) Supplemental general operating funding amounts shall be competitive, and 101
149149 each application of an eligible organization shall be reviewed in cohorts of similar budget size, 102 5
150150
151151 and with award amounts tiered in relation to the grantee’s budget size. In awarding supplemental 103
152152 operating funding amounts, the Commission shall take into account: 104
153153 “(A) The quality of the organization’s programming or services; 105
154154 “(B) Charitable and philanthropic activities of the organization that make a 106
155155 positive impact on the District, residents, or artists; 107
156156 “(C) Diversity in governance, management, and administration of the 108
157157 organization; 109
158158 “(D) Economic impact on the District ; and 110
159159 “(E) Other factors as determined by the Commission.”. 111
160160 (e) Section 7 (D.C. Official Code § 39-206) is repealed. 112
161161 Sec. 3. Fiscal impact statement. 113
162162 The Council adopts the fiscal impact statement in the committee report as the fiscal 114
163163 impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act, 115
164164 approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(3)). 116
165165 Sec. 4. Effective date. 117
166166 This act shall take effect following approval by the Mayor (or in the event of veto by the 118
167167 Mayor, action by the Council to override the veto) and a 30-day period of congressional review 119
168168 as provided in section 602(c)(2) of the District of Columbia Home Rule Act, approved December 120
169169 24, 1973 (87 Stat. 788; D.C. Official Code § 1-206.02(c)(2)). 121