The American Alliance of Museums (AAM), the only organization representing the entire scope of the museum community, today released its annual report on the current state of United States museums.
Museums across the USA are confronting a convergence of financial pressures and declining attendance even as they continue serving as vital community anchors.
The survey of 511 museum directors reveals troubling reversals in the sector’s post-pandemic recovery:
“The numbers tell a sobering story,” said Marilyn Jackson, AAM President & CEO. “We’re seeing attendance and financial performance trending in the wrong direction for the first time since the pandemic, with recovery not just stalling but reversing. This should be a wake-up call for policymakers and philanthropists alike.”
The report documents significant impacts from 2025 executive orders and federal actions. One-third of museums (34%) have suffered the cancellation of government grants or contracts, most frequently from the Institute of Museum and Library Services, the National Endowment for the Humanities, and the National Endowment for the Arts.
Only 8% of affected museums report that lost federal funding has been fully replaced by foundations, sponsors, or donors, while 67% report the funding has not been replaced at all.
These funding losses have forced difficult choices:
The economic impact extends far beyond museum walls, affecting architects, construction firms, engineers, and design professionals who partner with cultural institutions, illustrating just one example of the broader ripple effects throughout local and regional economies.
Museum directors anticipate continued disruption in 2026 from shifts in philanthropy, inflation, financial and market instability, changes to travel and tourism, and a reduction or elimination of government funding.
Even amid financial pressure, museums continue serving their communities. Over one-third (36%) provide direct educational support such as tutoring, after-school programs, and school supplies. One-fifth (19%) offer workforce development or job training. Museums also provide mental health and wellness resources, digital access and literacy services, civic engagement opportunities, and language access services.
“Even as museums struggle financially, they’re investing in the future of their communities,” Jackson added. “Museums are doing their part by adapting their business models, engaging with lawmakers, and continuing to serve their communities despite financial headwinds. Now we need policymakers and philanthropists to recognize that investing in museums is investing in education, economic development, and community cohesion.”