There are two issues here:
The answer to both questions is "NO."
- Is the government funding good and wholesome art, that really uplifts the national character?
- Should the government be funding good and wholesome art, that really uplifts the national character?
It is not the case that the government should stop funding pornographic and blasphemous "art" and start funding "good and wholesome" art; rather, the government has no business and no constitutional authority to fund any artists at all.
Why should the government fund what artists do for a living and not give checks to people who do what you do for a living?