The connection is improbable. This was a period, in the 1950s and 1960s, when the great majority of Americans disliked or even despised modern art - President Truman summed up the popular view when he said: "If that's art, then I'm a Hottentot." As for the artists themselves, many were ex- communists barely acceptable in the America of the McCarthyite era, and certainly not the sort of people normally likely to receive US government backing.

Why did the CIA support them? Because in the propaganda war with the Soviet Union, this new artistic movement could be held up as proof of the creativity, the intellectual freedom, and the cultural power of the US. Russian art, strapped into the communist ideological straitjacket, could not compete.

The existence of this policy, rumoured and disputed for many years, has now been confirmed for the first time by former CIA officials. Unknown to the artists, the new American art was secretly promoted under a policy known as the "long leash"1 - arrangements similar in some ways to the indirect CIA backing of the journal Encounter, edited by Stephen Spender.

The decision to include culture and art in the US Cold War arsenal2was taken as soon as the CIA was founded in 1947. Dismayed at the appeal communism still had for many intellectuals and artists in the West, the new agency set up a division, the Propaganda Assets Inventory, which at its peak could influence more than 800 newspapers, magazines and public information organisations. They joked that it was like a Wurlitzer jukebox: when the CIA pushed a button it could hear whatever tune it wanted playing across the world.

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• 1. This technique—called "long leash" operations—kept the CIA in the shadows as it sponsored massive organizations like the Congress for Cultural Freedom, which had offices in 35 countries, and organized historic exhibitions of Abstract Expressionist art in cities across Europe. The works were to form a psychological blockade against Communist artistic influence. Look at us! WE make great art!, each superpower shouted back and forth.

  Source: http://gizmodo.com/5686753/how-the-cia-spent-secret-millions-turning-modern-art-into-a-cold-war-arsenal

• 2. Of course what seems most bizarre about this turn of events is that avant-garde art in America has never been much appreciated by the average citizen, to put it mildly. American Main Streets harbor undercurrents of distrust or outright hatred for out-there, art-world experimentation, a trend that filters upward and periodically erupts in controversies over Congressional funding for the arts. A 1995 Independent article on the CIA’s role in promoting Abstract Expressionism describes these attitudes during the Cold War period:

  In the 1950s and 1960s… the great majority of Americans disliked or even despised modern art—President Truman summed up the popular view when he said: “If that’s art, then I’m a Hottentot.” As for the artists themselves, many were ex- communists barely acceptable in the America of the McCarthyite era, and certainly not the sort of people normally likely to receive US government backing.

  Why, then, did they receive such backing? One short answer:

  This philistinism, combined with Joseph McCarthy’s hysterical denunciations of all that was avant-garde or unorthodox, was deeply embarrassing. It discredited the idea that America was a sophisticated, culturally rich democracy.

  The one-way relationship between modernist painters and the CIA—only recently confirmed by former case officer Donald Jameson—supposedly enabled the agency to make the work of Soviet Socialist Realists appear, in Jameson’s words, “even more stylized and more rigid and confined than it was.” (See Evdokiya Usikova’s 1959 Lenin with Villagers below, for example).

  Source: http://www.openculture.com/2013/04/how_the_cia_turned_american_abstract_expressionism_into_cold_war_propaganda.html