The City of Fresno terminated its contract with the Fresno Arts Council after $1.5 million in taxpayer funds was allegedly embezzled by an employee. The city is now scrambling to distribute millions in arts grants itself while police and the FBI investigate. Get caught up on the story with this coverage synopsis and story links.
Here are five key takeaways
Measure P money missing: The $1.5 million allegedly stolen came from $5.7 million in Measure P funds paid to the Fresno Arts Council on Oct. 1, 2024. The unnamed employee no longer works at the organization and has not been charged. Fresno police opened a criminal investigation and are working with the FBI.
Arts Council contract canceled: The city terminated its contract with the Arts Council effective Feb. 20 and withheld its most recent $6.6 million payment after the nonprofit failed to provide basic financial records, including bank statements and check ledgers. City Manager Georgeanne White said that staff received what amounted to “a data dump.”
Fresno City Manager Georgeanne White answers questions about Fresno Arts Council embezzlement investigation and next steps with Measure P arts and culture grant administration at community art nonprofit Dulce Upfront’s space near Van Ness and Home avenues in Fresno. Melissa Montalvo Fresno Bee
Artists and groups waiting: At least 33 organizations are still waiting on grant payments from the last cycle, and 134 recipients were awarded an estimated $6.2 million in 2025 funds that the city must now distribute. White estimated the transition would take at least a month.
History of complaints: Community frustration had been building for months before the embezzlement came to light. Arts groups raised concerns about transparency in the scoring process, accusations of bias toward well-established organizations and months-long delays in fund distribution dating back to 2024.
Fresno Arts Council carries on: The council, founded in 1979, ran programs including ArtHop, the city’s Poet Laureate and the 559 Mural Project. The San Joaquin Valley Bookfest, a fiscal project of the council, said it would push ahead with its May 2 event despite “unknown variables at play.”
The summary points above were compiled with the help of AI tools and edited by journalists. The full story in the link at top was reported, written and edited entirely by journalists.
This story was originally published February 18, 2026 at 5:08 PM.
The Fresno Bee
Joshua Tehee covers breaking news for The Fresno Bee, writing on a wide range of topics from police, politics and weather, to arts and entertainment in the Central Valley.