Finley v. National Endowment for the Arts
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In Finley v. National Endowment for the Arts, 100 F.3d 671 (9th Cir. 1996), rev'd, 524 U.S. 569 (1998), the U.S. Supreme Court reversed a decision of the Court of Appeals for the Ninth Circuit that had ruled it to be unconstitutional for a government agency to consider "decency and respect" for American values when spending taxpayer money on the arts.
The U.S. Supreme Court decision came too late to affect the funding.