The museum is expected to close down to begin construction in mid-May and re-open by fall 2019.
The money will be used for renovation and gallery enhancements.
IU President Michael McRobbie will return a painting Monday to a Berlin art museum after discovering it had been looted after WWII.
IU Art Museum Program "The Spoils of War" is a self-guided tour which details art looted during World War II.
Alexander Calder's Peau Rouge Indiana stabile's fading paint is being removed so the sculpture can be repainted in its original orange-red color.