The Kennedy Center for the Performing Arts is reportedly on the brink of bankruptcy and could close as early as Tuesday, according to its leadership. The center's leaders, appointed during Donald Trump's presidency, suggested that placing Trump's name on the facade may be necessary to avoid what they described as imminent fiscal collapse, as reported by the Washington Post. The internal report, which was prepared for an upcoming board meeting, indicated that the institution may soon be unable to pay employees or cover maintenance costs. It also raised safety concerns related to the building's maintenance backlog and recommended immediate closure of the main building.
In a statement, the Kennedy Center declined to comment on the leaked documents but referred to a previous statement made after part of the ceiling in the main hall collapsed on September 4. Roma Daravi, the center's vice-president of public relations, stated that the incident highlighted the urgent need for renovation, which has been supported by Trump. She attributed the structural issues to years of neglect by prior leadership.
The Washington Post noted that Trump's involvement could be contingent on the acknowledgment of his name on the building. The report described this situation as a significant phase in Trump's management of the Kennedy Center, which has faced financial difficulties and leadership changes since he became chair in 2025. Trump's tenure began when he dismissed 18 board members appointed by Joe Biden and was subsequently voted in as chair by remaining trustees, many of whom were his allies.
The leadership changes led to a series of resignations, including board treasurer Shonda Rhimes and National Symphony Orchestra artistic adviser Ben Folds. Subscription sales reportedly dropped by 36% by June 2025, with ticket sales continuing to decline. A spokesperson for the Kennedy Center attributed the decline to broader trends in the Broadway industry, although sales had begun to fall prior to these pressures.
In March, Trump ally Richard Grenell was replaced as president by Matt Floca amid ongoing instability. The Post also reported that Trump's association with the Kennedy Center has negatively impacted fundraising efforts, although a spokesperson claimed it attracted new donors. A judge ruled in May that Trump's name on the facade was illegal, leading to its removal in June. However, the board voted to reinstate his name in August while also deciding to close the venue for a multiyear renovation.
Historically, the Kennedy Center has operated at a deficit of approximately $100 million annually, with previous leadership leaving a $26 million deficit. This situation has been described as a result of falsified budgets, a claim made by Grenell in 2025. Additionally, the center's lawyers argued that millions in private donations would need to be returned if Trump's name were not restored, citing the institution's bylaws. The board informed a federal judge that it would delay adding the name until at least October 8, a month later than originally planned. Reuters contributed to this report.