I'm not sure that America is hostile toward art.  I think America is by and large ignorant or uneducated about art and its value to a society. There are groups within the country who certainly seem to oppose free thinking and maybe even fear the power of art and, although these groups seem to hold a lot of sway, I don't think those groups equal America.  

There is a catch 22 in public funding - the government won't act until the people speak out, but the people won't speak out unless art becomes a priority in their minds (which funded art programs tend to facilitate). Like it or not, that's our current system. Therefore, artists and art supporters need to get creative with their programs, funding sources, and grassroots campaigns to promote art. It's not fair, it's not right, but it's where we are right now.