Donald Trump's administration has issued a dire warning over the future of the Kennedy Center, claiming the iconic performing arts venue could plunge toward financial ruin if the president is not properly recognized at the building – despite internal projections reportedly showing revenues plummeting after his takeover, Breaking Celebrity News can reveal.

The Justice Department lawyers made the dramatic claims in a new court filing amid the ongoing legal battle over Trump's controversial association with the John F. Kennedy Center for the Performing Arts.

According to court documents reviewed by Radar, the administration argued an order blocking the Kennedy Center's board from "appropriately recognizing President Trump" could devastate fundraising efforts and jeopardize plans to rehabilitate the aging Washington, D.C., landmark.

Government lawyers warned such an order would cause "donors to flee, financial contributions to dry up, and structural rehabilitation to stop."

They added: "There will simply not be the expertise or funding necessary to rebuild and renovate this decimated structure."

But the administration's dire prediction comes as internal Kennedy Center financial records reportedly paint a strikingly different picture.

According to The Washington Post, confidential budgets, forecasts and other internal records show ticket revenue and fundraising plunged following Trump's takeover, with the decline becoming even more severe after his name was added to the building.

The Center had reportedly budgeted roughly $220million in revenue for fiscal year 2026, but by late May officials projected it would bring in only about $124million — nearly $100million below its original target.

Despite cutting projected expenses by roughly a third, officials were still forecasting a $23million deficit, according to the report.

One official familiar with the Center's finances described what happened after the Trump name change as an "absolute fiscal cliff," claiming donors, ticket buyers, and artists disappeared.

The figures provide a striking backdrop to the administration's latest argument that recognizing Trump is essential to the institution's financial survival.

The legal battle stems from Democratic Rep. Joyce Beatty's challenge to changes made after Trump overhauled the Kennedy Center's board and installed himself as chairman.

Trump's allies voted to add his name to the institution, but U.S. District Judge Christopher Cooper ruled in May that only Congress has the authority to rename the Kennedy Center. Trump's name was subsequently removed from the building after the administration failed to secure emergency relief from an appeals court.