The Texas Cultural Trust’s 2025 State of the Arts Report brings renewed attention to the critical role the arts play in the state’s economy, education, and community development. Released in February 2025, the biennial report demonstrates the ever-growing economic contribution of the arts in Texas, while emphasizing the importance of sustaining investments in arts education and equitable access across the state.
According to the report, the arts and culture sector in Texas has seen tremendous growth over the past decade, contributing over $7.3 billion annually to the state’s economy. The sector supports nearly 460,000 jobs—one in every 14 positions in the state—underscoring the significant role the arts play not just in shaping cultural identity, but in driving economic prosperity. With the arts generating nearly $459.1 million in state sales tax revenue each year, it is clear that investment in the arts is a strategic economic decision for Texas.
The Economic Power of the Arts in Texas
In recent years, Texas has positioned itself as a national leader in the arts, with the sector’s economic footprint expanding rapidly. Over the last decade, the Texas arts industry has experienced a 63% growth, with creative industries like visual arts, performing arts, and cultural tourism playing a central role. This growth has been bolstered by both public and private sector investments, as well as by the growing recognition that a strong cultural ecosystem supports broader economic development.
One of the most striking aspects of the 2025 report is the focus on cultural tourism, which is now considered a vital component of Texas’ broader tourism economy. Approximately 1 in 4 visitors to the state engage in cultural tourism, with many traveling specifically to experience the state’s museums, festivals, music venues, and historic sites. Cultural tourists tend to stay longer and spend more than non-cultural tourists, resulting in increased revenue for local businesses, hotels, and restaurants.
Additionally, cities like Austin, Houston, Dallas, and San Antonio have emerged as cultural hubs that attract both domestic and international tourists. Major events like South by Southwest (SXSW) in Austin, the Houston International Film Festival, and San Antonio’s Fiesta bring millions of visitors to the state, further boosting the local economy.
In rural areas, arts organizations play a critical role in driving economic growth by attracting visitors and fostering local pride. Events like the Texas Shakespeare Festival in Kilgore and The Cactus Pear Music Festival in San Antonio bring tourism revenue and job creation to smaller communities, demonstrating that cultural vitality is not limited to urban centers.
Arts Education’s Influence on Texas Students
The 2025 report also highlights the profound impact of arts education on student performance and overall well-being. Students who are actively engaged in the arts tend to perform better academically, with arts-integrated schools showing higher graduation rates and better standardized test scores. According to the report, students highly involved in the arts are up to 46% more likely to pass the Texas Success Initiative criteria, and they are twice as likely to meet the criteria for Advanced Placement and International Baccalaureate exams.
The Texas Cultural Trust underscores the importance of arts education as a tool for improving not only academic outcomes but also social-emotional skills. Students involved in the arts tend to develop stronger self-management, social awareness, relationship-building, and decision-making skills—all of which are essential in today’s workforce. Given the growing demand for creativity and innovation in industries like technology, digital media, and design, the importance of arts education in preparing students for future careers cannot be overstated.
The report also touches on the importance of addressing disparities in arts access, particularly for students in rural and underserved communities. While major urban districts have developed robust arts programs, many rural areas continue to struggle with limited access to arts education. The Arts Can Help initiative, launched by the Texas Cultural Trust in 2023, aims to address these gaps by providing grants and resources to schools and organizations in underserved areas.
The Community and Health Benefits of the Arts
Beyond economics and education, the 2025 report highlights the role of the arts in improving community health and well-being. Engaging with the arts, whether through performing, visual arts, or simply attending cultural events, has been shown to have tangible health benefits. Research has found that participation in arts activities can reduce stress, improve cognitive abilities, and promote emotional well-being.
The arts and health sector has gained increasing attention in recent years, as more studies demonstrate the positive effects of artistic engagement on mental health. Local organizations, such as Art & Healing Texas and Creative Arts Therapies, work to integrate the arts into healthcare settings, helping individuals cope with trauma, manage stress, and enhance emotional resilience.
In fact, in many Texas cities, arts programs have become vital tools for community healing and connection. Programs such as Arts for the Aging in Houston, which provides therapeutic arts workshops for older adults, have had a significant impact on participants’ well-being. These initiatives are particularly important as the state’s population continues to age, and access to community support becomes increasingly vital.
Furthermore, vibrant arts communities are instrumental in attracting both residents and businesses. Cities with strong cultural offerings tend to enjoy higher rates of economic development and social cohesion, with public art installations and community festivals often serving as catalysts for broader urban revitalization efforts.
A Call for Sustained Investment in the Arts
Despite the clear benefits of the arts, the report calls for continued and increased investment in the sector. The Texas Cultural Trust notes that while the arts contribute significantly to the state’s economy, public funding for arts programs remains below the national average. For the sector to continue to grow and provide its economic, educational, and social benefits, both state and federal policymakers must prioritize arts funding.
The 2025 report urges lawmakers to recognize the role of the arts in Texas’ future prosperity and to invest in arts infrastructure, education, and access programs. With Texas’ population expanding rapidly, maintaining a healthy arts ecosystem will be critical to ensuring the state’s continued cultural and economic vitality.
Looking Forward
The Texas Cultural Trust’s 2025 State of the Arts Report serves as a comprehensive overview of the state’s cultural sector and its impact. As Texas continues to grow, the arts will play an increasingly important role in shaping the state’s identity and future. Whether through the enhancement of educational outcomes, the stimulation of local economies, or the promotion of health and community well-being, the arts are an essential part of the fabric of Texas.
As the report suggests, now is the time for policymakers, educators, and community leaders to continue to prioritize the arts. By fostering a culture of creativity, Texas can remain at the forefront of cultural and economic innovation for generations to come.
