By The John F. Kennedy Center for the Performing Arts has been thrust into political and financial turbulence under its new president, Richard Grenell, who has called for a federal investigation into what he labeled “criminal” mismanagement of the institution’s finances. Speaking at a White House dinner hosted by President Donald Trump, Grenell alleged the discovery of $26 million in “phantom revenue” during a recent budget review and pledged to refer the matter to the U.S. Attorney’s Office. What specific conduct may constitute criminal activity remains undefined.
The allegations stem from an internal review led by newly appointed chief financial officer Donna Arduin, known for her work in aggressive state budget reforms, reported The New York Times. While deficits are commonplace in major cultural nonprofits, Grenell’s claims have drawn sharp pushback from the Kennedy Center’s former leadership. A spokesperson for ousted chairman David Rubenstein noted that prior financial reports were audited, reviewed by the board, and approved by independent accounting firms.
Grenell’s appointment follows a sweeping purge of leadership orchestrated by President Trump, who removed the Kennedy Center’s bipartisan board, fired longtime president Deborah Rutter, and assumed the role of chairman himself. The reshuffle has upended the Center’s governing structure and sparked backlash across Washington’s arts community.
The Times noted that Rutter released a statement challenging Grenell’s account, saying, she left “the Kennedy Center was fiscally sound, on track to balance its budget for the year, and positioned to grow its endowment significantly while serving as a beacon for free artistic expression and a place where everyone could belong.”
Rutter added that she was “deeply troubled by the false allegations regarding the management of the Kennedy Center” and suggested that “perhaps those now in charge are facing significant financial gaps and are seeking to attribute them to past management.”
The shift in leadership has brought a corresponding transformation in programming. This season’s lineup includes popular titles like The Outsiders, Back to the Future, Moulin Rouge!, and Spamalot, but also nonunion stagings of Chicago and Mrs. Doubtfire—a controversial move framed by Grenell as a cost-saving strategy to broaden audience access. Critics argue it undermines labor standards and signals a devaluation of professional stagecraft.
On the dance side, established companies such as American Ballet Theater, New York City Ballet, and Stuttgart Ballet will return, along with contemporary troupes from Martha Graham and Trisha Brown. Yet conspicuously absent is Alvin Ailey American Dance Theater, a longtime Kennedy Center partner, which cited a global collaboration as its reason for stepping away. Behind the scenes, insiders suggest tensions with the new leadership may have also played a role.
President Trump has requested $257 million from Congress to address long-delayed capital repairs and has compared the Kennedy Center’s current state to the dilapidated Wollman Rink he renovated in 1980s New York. He is expected to attend a gala performance of Les Misérables in June.
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