Richmond nonprofit’s grant loss highlights broader federal funding struggles for local nonprofits

RICHMOND, Va. (WRIC) — A Richmond-based nonprofit is facing another financial blow after being denied a federal arts grant it had received annually for the past five years.

Studio Two Three is an arts organization that provides studio space and resources for local artists. It's also one of several Central Virginia nonprofits feeling the strain of federal funding cuts.

Studio Two Three in Richmond. (Photo: 8News)

“To just kind of be in limbo and to not know if funding is going to be cut... it makes it difficult to make decisions and to act and move forward,” said Ashley Hawkins, executive director and co-founder of Studio Two Three.

Hawkins first spoke with 8News in March 2025, after the organization lost a $200,000 energy efficiency grant. It was intended for infrastructure improvements, but after a federal funding freeze in January, the nonprofit never saw those funds.

Now, the organization has also lost support from the National Endowment for the Arts (NEA), which had previously provided $30,000 annually for Studio Two Three’s artist residency program.

It comes after the NEA updated its grantmaking policy priorities to focus funding on projects that "reflect the nation’s rich artistic heritage and creativity as prioritized by the president.”

“We’re assuming we will not be funded through the NEA for the foreseeable future,” Hawkins said.

Over the last few months, Hawkins said the nonprofit has lost at least $200,000 in federal support, which has forced her team to find new ways to fill the gap.

“We are actually looking to individual donors or reaching out to our local community foundations and seeing if there are folks who, individually or through foundations, would be able to step in,” Hawkins said.

Studio Two Three is not alone. Richmond's Health Brigade, Virginia’s oldest free clinic, recently announced it had lost about $1 million in state and federal funding in less than a year. The organization described the loss as “an attack on public health,” and has since been urging the public to donate on its website.

Nonprofits across the region are also receiving help from organizations like the Community Foundation, which provides grants and technical support to help them plan around budget cuts.

Despite the financial strain, Hawkins said Studio Two Three remains committed to keeping its community space free and accessible.

“We know folks are just facing such financial challenges, so that feels like the most meaningful contribution,” she said. "The need is there and it's just really beautiful to see folks in here using the space in so many different ways."

While the NEA grant was a reliable source of support, Hawkins said she's grateful for the anonymous donors who have stepped in to help in recent months.

Hawkins also told 8News that Studio Two Three will be receiving a loan from the Virginia Community Development Fund to cover the nonprofit's infrastructure improvements.