Workers were seen building scaffolding at The Kennedy Center on June 12, 2026, as the institution grapples with a financial crisis that may lead to its closure. On Sunday evening, the Washington Post reported that the Kennedy Center administration informed its board that the arts institution is on the brink of bankruptcy and could close as soon as Tuesday. Both the majority of the center's leadership and board were selected by President Trump. The 57-page board packet says the center could be unable to meet payroll or routine maintenance costs within weeks.
A document outlining this plan was issued ahead of a board meeting scheduled for Tuesday, which coincides with a federal court hearing concerning the renaming of the center, according to NPR. The court case was brought by Rep. Joyce Beatty to prevent the renaming of the Kennedy Center to honor Trump last December. Beatty, who is an ex-officio member of the Kennedy Center board, submitted two proposed board resolutions to the court on Monday.
One resolution says the center should shut down immediately, citing safety concerns related to continued occupancy. However, Beatty's legal team claims that construction consultants brought in by the board have never said the building is unsafe. Separate inspections found water damage and corrosion in structural components around the exterior of the building.
Most of the center’s staff have either been fired or left, with those remaining largely loyal to President Trump. The Kennedy Center board was mostly handpicked by the president, who now serves as its chairman. On September 5, the center reported that a section of the ceiling in the main building’s grand foyer collapsed due to rain damage. No one was injured when a roughly four-by-five-foot section of plaster fell about 60 feet near the Concert Hall entrance.
The Kennedy Center argues that it is in serious financial trouble and that only President Trump can fundraise at such a large scale or oversee the renovation project needed. Commerce Secretary Howard Lutnick, whose wife was appointed to the board in February 2025, made this argument outside of a court hearing last month. Lutnick stated that the renovation would cost $257 million if President Trump is in charge, compared to $500 million if done over time. He added that Trump has the power and expertise to complete the work and is the greatest builder in the world.
Despite these claims, the institution faces real financial challenges. Like many legacy not-for-profit institutions, the Kennedy Center typically relies on a mix of earned income, donations, and government grants. The former president of the center, Ambassador Richard Grenell, tried to make sure that every performance was revenue-generating or at least revenue-neutral.
Current president and CEO Matt Floca was promoted from his role as head of facilities and has no experience in artistic direction, fundraising, or arts administration. No one else on the board has known experience with similar performing arts institutions. Artists and audiences have largely left the Kennedy Center over the past year due to its politicization under Trump’s leadership. The live event calendar is now a small fraction of what it once was. Donations have also significantly decreased. It remains unclear whether Trump’s further involvement would change the situation.
Internal budgets obtained by The Washington Post showed that ticket sales and fundraising fell sharply after Trump’s name was added to the building in December. By May, officials expected about $124 million in revenue compared with the $220 million that had been budgeted. The documents projected a deficit of roughly $23 million even after spending cuts. A Kennedy Center spokesperson blamed earlier management for the financial problems and said Trump’s name had attracted new donors.
The Department of Justice has argued that without Trump’s fundraising and involvement in the renovation, the building could deteriorate to an unsafe condition and eventually require demolition. Several proposed inscriptions for the Kennedy Center include phrases such as “Renovation and endowment overseen by President Donald J. Trump” or “Sustained through the generosity of President Donald J. Trump.” The board had previously approved an inscription that would read “The John F. Kennedy Center for the Performing Arts Restored and Renovated By President Donald J. Trump.”
U.S. District Judge Christopher Cooper ruled in May that only Congress can rename the Kennedy Center and ordered Trump’s name removed from the building. The board has continued pursuing ways to recognize Trump without describing the new wording as an official renaming.
The Kennedy Center is preparing for major renovations under the Trump-led board, but the planned two-year closure has been tied up in court. Earlier this month, workers dismantled the 24-foot-tall site-specific sculpture Blue by artist Joel Shapiro. Billionaire philanthropist David Rubenstein, who was removed as chairman when Trump took control of the center in 2025, has since purchased the piece and plans to send it to the Sculpture Garden of the National Gallery.
The Kennedy Center’s financial troubles have worsened amid falling ticket sales, reduced fundraising, leadership changes and legal disputes, according to internal records and current reporting. Kennedy Center officials have blamed previous management for some of the financial problems and say Trump can help raise the money needed for repairs.
If the board approves the immediate closure resolution Tuesday, the main Kennedy Center building could close at once. The Reach would remain open while performances and other programs could continue at other locations.