This seems like it mostly funnels money to rich kids, to be honest. Nobody else can afford to already be an artist.

Working artists, spouses, and semi-retirees are relatively common.

‘2,000 creative workers’ would make this quite competitive, even if it’s only 20k USD/year that could easily enable people to be artists who wouldn’t make a career of it on their own.

Poor people and middle class people produce art. They both work as artists or do art on the side as a hobby. It is not that expensive either.

Expectation that you have portfolio does not strikes me as outrageous either.