Earlier this year, the National Endowment for the Arts began requiring that any artists that received grants from the federal agency needed to confirm that they were not operating "any programs promoting 'diversity, equity, and inclusion'" and were not promoting "gender ideology." This was in response to executive orders from the Trump Administration. Soon after, the American Civil Liberties Union filed a lawsuit on behalf of a number of queer theatre companies. On September 19, a federal judge in Rhode Island ruled that the gender ideology order violated the First Amendment rights of artists.

In his decision, U.S. Senior District Court Judge William Smith (who was appointed by President George W. Bush), wrote that the NEA's "policy barring any project that 'promotes gender ideology' from receiving funding 'runs afoul of the First Amendment" because it would force artists to self censor and "reduce the likelihood that any grant application that 'promotes gender ideology' will receive funding."

The Trump Administration currently defines "gender ideology" as "the idea that there is a vast spectrum of genders that are disconnected from one’s sex" and has directed the federal government to only recognize two sexes: male and female. 

Smith noted that the NEA's policy violated the 1965 National Foundation on the Arts and the Humanities Act, which established the NEA would award grants "based on talent alone, irrespective of the artists’ identities, backgrounds, viewpoints, or perspectives.” Smith also wrote that "the NEA supports private art, not government propaganda."

The suit was filed in March by the ACLU and the ACLU of Rhode Island on behalf of Rhode Island Latino Arts, National Queer Theater, The Theater Offensive, and Theatre Communications Group. The theatres involved had received more than 50 NEA grants since 1998, a number of them for works that "broadly explore themes of sex, gender, and identity that administration officials could consider to 'promote gender ideology.'”

"This is an important victory for freedom of speech and artistic freedom," said Vera Eidelman, senior staff attorney with the ACLU's Speech, Privacy & Technology Project, in a statement. "At a time where the government is using its full weight to try to impose ideological conformity, this order is an important reminder that the First Amendment protects us from exactly that. Even when the government funds private speech, it does not get to support only those messages that parrot its views."

The theatres involved are likewise celebratory. Said Rose Oser, Producing Director at National Queer Theater, to Playbill, "What matters is that we fought back, that we took a stand for queer and trans artists. Because when [the NEA] announced their guidelines, we were so angry and upset and sad. And it really felt like the taking legal action was something that we had to do, because this was a fight that actually felt like it was worth fighting in court." 

NQT was one of many theatres around the country that had their previously approved grant funding rescinded this year, after the NEA announced it would be redirected its funds towards projects that "reflect the nation's rich artistic heritage and creativity as prioritized by the President." NQT had previously received grants in 2023 and 2024, for up to $25,000. Though it had its 2025 grant cancelled, NQT recently applied for a grant for 2026.

"We should receive notification in November. So it'll be interesting to see if this ruling actually affects whether or not we get funding," says Oser. Even though the court decision addresses the "gender ideology" order and not the diversity order, Oser still sees it as a helpful sign, saying, "I certainly think this is a win for any kind of First Amendment argument. So I think if others are fighting around the DEI issues, this could be used to help those cases."

After the ACLU filed its lawsuit in March, the agency changed its requirement for grant recipients again, saying that it would review grant applications on a “case-by-case” basis “for artistic excellence and merit, including whether the proposed project promotes gender ideology.” It said it would not turn down grant applications solely based on the gender ideology requirement, but that would still factor into final approval. But this still violated the First Amendment, says the court ruling.

“The First Amendment doesn’t allow the federal government to restrict speech based on what the current administration may or may not like. Congress specifically set up the National Endowment for the Arts to insulate it from this type of political meddling in funding the arts,” said Steven Brown, executive director of the ACLU of Rhode Island, in a statement. “This ruling is a win for our plaintiffs, and for free speech.”

This latest development is another chapter in how tumultuous the arts have become ever since Trump returned to office. Trump has been clear in his mission to prevent what he sees as "woke" art from receiving federal funding. Even though the NEA has historically had bipartisan support, Trump has attempted to dismantle the agency during his previous term in office, and in his 2026 budget proposal.

In the meantime, the NEA has let go of a number of staff members, including its longtime director of theatre. Requests for comment from the NEA were not returned at the time of publication.