Arts and voluntary groups in Worcester will get the same funding as last year despite a reduced budget, the council said.
The city's Swan Theatre, Community Trust and Huntingdon Hall are among organisations getting a share of £300,000 for groups in the budget.
Events such as the Worcester Festival and the Three Choirs Festival will still be able to go ahead.
Spending will fall from £13.6m to £10.9m in next year's budget.
The Conservative-controlled council voted the budget through earlier this week.
The Swan Theatre's chief executive, Chris Jaeger, said he had feared the worst but was pleased the council had shown commitment to the arts.