New Orleans officials are halting city grants for hundreds of artists, musicians and organizations in light of the city’s budget crisis, and it’s not clear when they plan to restore the funding that many view as a lifeline.
Recipients were set to receive grants in December through Mayor LaToya Cantrell’s Office of Cultural Economy and the City Council’s Recreation and Culture Fund. But officials have since paused the programs with no timeline to reinstate them, they said earlier this month.
The Cultural Economy Office “recognizes that many local arts and culture organizations have already lost vital funding and is deeply concerned about the impact this will have on the communities they serve,” officials said in a statement.
City Council members, in a post on the council’s social media page, said of the Recreation and Culture Fund: “The 2025 grant cycle will not proceed. All submitted applications will be kept on file for potential consideration in 2026, pending budget capacity.”
City officials launched the separate programs in the wake of the COVID-19 pandemic — a particularly challenging time for tourism-dependent workers in hospitality, entertainment and other service-oriented industries.
The grants supported groups and individuals that drive the city’s tourism economy, from festival organizations and culinary programs to musicians struggling with increased costs of living.
But a $160 million budget deficit and a separate cashflow crisis that has impacted payroll through the end of this year has forced the city’s hand, officials said. That means groups that relied on the money will be left hanging.
“For us, it’s a budget cut,” said Kheri Billy, CEO of Cafe Reconcile, a youth-centered workforce training program.
Recreation and Culture
Billy and other past recipients of the Recreation and Culture Fund said they received notices last week saying their 2025 applications would not move forward.
Cafe Reconcile received $65,000 last year in support of its 14-week internship program, which provides paid, on-the-ground industry training for youth in the organization’s Oretha Castle Haley Boulevard restaurant.
From left to right, Elijah Cobb, Jeremy Emilien and Mia Williams prepare dishes during their internship at Cafe Reconcile.
Billy said they were hoping for an award this year that they would use for uniforms and support services.
“We have to scale back and figure out what we can do differently,” she said.
The council established the Recreation and Culture Fund in 2022 by pulling $5 million from the city’s general fund to support eligible community and youth-serving organizations, including “culture bearers,” individuals and organizations that help keep the city’s traditions alive.
The Greater New Orleans Foundation processed and vetted applicants based on criteria such as strong leadership, financial management and contributions to high-need communities.
Last year, awards ranged from $2,500 to $75,000 for groups such as the Ellis Marsalis Center for Music, the New Orleans Women and Children’s Shelter and youth apprenticeship program unCommon Construction, among others.
Branford Marsalis and Harry Connick, Jr. were the men behind the creation and construction of the Ellis Marsalis Center for Music in the Musician’s Village.
Cultural Economy
Separately, the Cantrell administration’s Cultural Economy program has since 2021 given grants to groups that could use the funds for workshops, training or cultural events. The groups could be focused on entertainment, design, culinary arts or visual arts, among other categories.
Funds are often used to pay musicians or for other activities that will “directly impact either cultural workers or attract sales for art and cultural vendors,” according to the Cultural Economy Office.
In that program’s first year, grants ranged from $1,000 to $10,000 apiece.
“Our city is defined by culture. It drives our economy. Our New Orleanians have a sense of belonging to this city that cannot always be measured by dollars because of our culture,” Frederick Delahoussaye, director of the Mayor’s Office of Cultural Economy said at a recent budget hearing.
Budget crisis
The belt tightening comes as the city stares down a $160 million budget deficit, caused by overblown revenue projections, a failure to account for overtime pay and some officials’ refusal to heed early warnings about excessive spending, among other things.
City officials are separately working to cover payroll for the city’s 5,000 workers through the end of the year. Mayor-elect Helena Moreno and City Council members have asked the state to agree to let the city sell $125 million in emergency bonds to help ease the financial strain. The State Bond Commission is due to meet on that point on Wednesday.
City council member at-large and mayor-elect Helena Moreno speaks during a City Council meeting in New Orleans on Wednesday, October 29, 2025. (Staff photo by Brett Duke, The Times-Picayune)
“It looks like we’re on a much better path to get Bond Commission approval for bridge funding that we really need to keep the government running,” Moreno said in a social media video Tuesday.
Moreno’s transition team is separately considering trimming appointed or unclassified City Hall positions and is looking at ways to charge “impact fees” for services like police protection for special events in the city in an effort to generate much-needed revenue.
Moreno’s team did not respond to a request for comment.