You may remember the big blow up over Jock Sturges photographs of nude children in France as part of his studies of a French women and her daughters. I think the FBI got involved as well as the justice department over allegations of child pornography. (Allegations that I strongly disagreed with)
Anyway, I remember a stink over some museums displaying the work or purchasing work with those museums being protested because they received tax dollars for funding. I don't remeber specifics if that had anything to do with NEA monies.