Former Kennedy Center Leaders Dispute $26 Million Fraud Allegations

The Kennedy Center is embroiled in a financial controversy following allegations of mismanagement and fraud by its new leadership under Richard Grenell, appointed by President Trump. Grenell accused the previous administration, led by Deborah Rutter, of fabricating $26 million in phantom revenue and building a broken budget with significant deficits, which he described as criminal and announced would be referred to the U.S. Attorney’s Office. Rutter, who served as president for a decade before being fired by the Trump administration, strongly denied these allegations, emphasizing that budgets were transparently approved by the board, which included Trump appointees, and that the center was fiscally sound at her departure. She also highlighted the existence of a $10 million sustainability fund designed to cover revenue fluctuations and criticized the current leadership for lacking the expertise in nonprofit and arts management. The Kennedy Center has declined to provide detailed financial documents to the press, and the specific legal basis for the fraud allegations remains unclear amid a broader context of typical deficit spending in nonprofit arts organizations post-pandemic. The dispute reflects broader tensions following President Trump’s overhaul of the center’s board and leadership, with former board chair David Rubenstein and others defending the prior financial oversight as transparent and responsible.