Eliminate standing panel meetings for fellowship competition. With 35-40 panels per year, 5 panelists per panel, the travel costs alone are excessive. Run the competition like Summer Stipends, solely by mail. This was done many years ago, so there is precedent.
Require all federal grants given to individuals(fellowships, stipends, scholarships, etc.) be given only to U.S. citizens. Currently, foreigners who reside in the U.S. for three or more years are allowed to receive these grants.
Eliminate NEH. The government (that is, the public), already subsidizes university and non-profit humanities organizations and programs through the income tax deduction for charitable contributions.