A major opera company has filed a federal lawsuit seeking the return of more than $17 million in donations it claims a prominent performing arts center wrongfully withheld following the termination of their partnership.
The Washington National Opera filed the complaint in the U.S. Court of Federal Claims on Thursday, alleging that the Kennedy Center improperly retained funds specifically donated to support opera performances, artists, and educational programs. The lawsuit also reveals that the center used a portion of these funds as collateral for a line of credit.
The legal action comes six months after the opera company ceased performing at the Kennedy Center and amid ongoing disputes about leadership changes at the venue. The opera company is asking Federal Claims Judge Robin Meriweather to order the immediate return of the funds and mandate a comprehensive audit of the Kennedy Center’s finances for fiscal years 2025 and 2026.
According to court documents, the two organizations had operated under a 15-year agreement whereby the Kennedy Center managed donations made to the opera company in exchange for producing its performances. The arrangement included provisions for marketing, fundraising, administrative support, and regular financial reporting.
The relationship began deteriorating in March 2025 when the center allegedly reduced or failed to provide contracted staffing and support services. The opera company claims that by the second half of 2025, critical services had ceased entirely, prompting the center to propose terminating their agreement.
The WNO Development Office, responsible for generating the company’s largest revenue stream, was supposed to expand from eight to twelve employees under a 2024 revision to their agreement. However, by November 2025, the office had no full-time staff members. The opera company described the situation as chaotic, with gifts going unprocessed, donor benefits unfulfilled, and communications unanswered.
The dispute escalated when the opera company lost access to its financial records in fall 2025 after the Kennedy Center installed new financial management software and denied requests for system access. The company maintained three separate funds managed by the center: the WNO Endowment Fund, the WNO Board Special Revenue Fund, and the WNO Fund for Innovation and Excellence.
On January 8, 2026, the Kennedy Center’s chief financial officer informed the opera company that money in the Board Special Revenue Fund belonged to the center, not the opera. The communication also disclosed that these funds had already been used as collateral for the center’s line of credit.
The following day, the opera company’s board voted to terminate the agreement and demanded the return of all Washington National Opera assets by March 31, 2026. In response, the Kennedy Center immediately cut off the opera’s access to electronic data stored on its systems, including emails, donor information, meeting minutes, and Board of Trustees records dating back to 2011.
The center also locked the opera company out of its workplace locations and sent termination letters to its employees. Then-Kennedy Center President Richard Grenell announced on social media platform X that the center had decided to end its partnership with the opera company.
The opera company emphasized its fiduciary responsibility to donors, stating that the funds represent years of contributions from supporters who gave specifically to advance the opera’s mission and programs. Despite requests for mediation, the company says little progress has been made in recovering the funds over the past five months.
The lawsuit represents a significant escalation in what has become an increasingly bitter dispute between two of the capital’s most prominent cultural institutions.
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