Among those affected are the Hay Festival of Literature and Art, Llangollen International Musical Eisteddfod, umbrella body Voluntary Arts Wales, Theatr Harlech and Pavilion Theatre Rhyl.
Funding to 71 organisations, including orchestras, arts centres and community groups, is expected to go ahead. Read more on the story on the BBC Wales News website.
And listen again to this week's BBC Radio Wales programme Eye on Wales, as Selma Chalabi investigates what the funding cuts might mean for the cultural life of Wales, and asks who should fund the arts in a recession.
Feel free to comment! If you want to have your say, on this or any other BBC blog, you will need to sign in to your BBC iD account. If you don't have a BBC iD account, you can register here - it'll allow you to contribute to a range of BBC sites and services using a single login.