NEWS

Protect Federal Funding for Historic Preservation

Proposed cuts to the federal Historic Preservation Fund are placing vital programs in profound jeopardy in Indiana and beyond.

The American Factory (Journeyman Distillery) in Valparaiso

In 2023, Journeyman Distillery launched a $40 million renovation of a historic manufacturing complex in Valparaiso, transforming the site into a distillery, restaurant, and event venue. The project utilized federal Historic Tax Credits administered by the Indiana Division of Historic Preservation and Archaeology. Photo courtesy RATIO.

POSTED ON May 29, 2025 BY Indiana Landmarks | News

A Threat to Indiana Communities

Historic preservation is a powerful economic and cultural catalyst that directly benefits communities around Indiana, but proposed cuts to federal funding are placing vital programs in profound jeopardy.

Current federal funding for historic preservation—approved by Congress in October 2024—has not been released, prompting uncertainty and potential disruptions to important preservation programs. Even more concerning, the Administration’s proposed budget for the 2026 fiscal year effectively eliminates the federal Historic Preservation Fund (HPF), raising serious concerns about the future of the program and its impact on historic preservation efforts around the country.

In Indiana, the HPF supports projects that enhance and strengthen communities, including National Register nominations, grants for revitalization initiatives, and critical funding for the state’s Division of Historic Preservation and Archaeology (DHPA), which faces sweeping layoffs. Without necessary funding, these programs could grind to a halt, leaving existing projects in limbo.

While federal funding for historic preservation fuels programs in communities of all sizes, these proposed cuts will have an outsized impact on rural areas and small towns. More than $570,000 in funding for preservation is on hold in Indiana, delaying projects to rejuvenate historic landmarks in Pendleton, Bremen, Plymouth, Howe, and other communities.

Furthermore, without DHPA staff to review and administer federal programs, more than $40 million in local investment through the Historic Tax Credit program could stall. Historic tax credits—federal tax incentives for rehabilitation and reuse of historic buildings—have leveraged millions of dollars in private investment in cities and towns around the state, including recent transformational projects in Fort Wayne, Marion, Wabash, Jeffersonville, Elkhart, and Valparaiso.

To be clear, Indiana risks losing money Congress has already allocated, investments that our communities are counting on to restore and revitalize historic places. Money appropriated for the Historic Preservation Fund does not come from state or federal tax revenue, but from a dedicated federal trust fund—paid for with lease revenue from energy companies drilling for oil and gas on offshore property under federal jurisdiction.

Preservation is nonpartisan, and protecting federal preservation funding and historic tax credits should be about more than policy; it should be about prioritizing and protecting historic places as valuable economic assets and cultural touchstones for future generations.

Taking Action

Indiana Landmarks is advocating vigorously at the federal level for Congress to release previously allocated funds and to maintain full funding for the Historic Preservation Fund in 2026—and we will continue to do in support of historic preservation across the state. You can support our work by donating or becoming a member today, and by making sure your federal legislators recognize the critical role federal preservation funding plays in creating and sustaining vibrant communities.