US President Donald Trump has directed the White House counsel to examine allegations that former Trump adviser Ric Grenell failed to deposit a multimillion-dollar donation to the Kennedy Center made by the billionaire husband of former Trump attorney Alina Habba, Axios reported.
The allegations have triggered a bitter feud between Habba and Grenell, two former Trump allies.
The contribution in question is nearly $5.6 million, White House sources told the news outlet, citing what Habba reportedly told Trump and administration officials. Grenell has reportedly denied the accusations, calling them “absurd” and a “lie”.
A senior administration official cautioned that the claims remain unverified and could stem from a misunderstanding. However, another official told Axios that if money was missing, it would represent a serious problem.
What is the accusation against Ric Grenell?
According to news report which cited sources, Habba told Trump and White House staffers that Grenell had persuaded her husband Turkish businessman Turhan Mildon to include a multimillion-dollar donation to the Kennedy Center in a larger payment connected to a business deal involving a US company.
The alleged arrangement dates to the spring of 2025, when Grenell was serving as a Trump special envoy and was advocating for normalising US relations with Venezuela under then-President Nicolas Maduro.
Two sources told Axios that the Kennedy Center contribution was allegedly included in a lump-sum payment of $17.6 million for a business transaction.
Habba initially described the disputed donation as $17 million, Axios cited sources as saying. And, after learning more about the transaction from her husband, she reportedly identified the amount in question as $5.6 million.
Habba’s attorneys plan to provide the White House with documentation supporting the allegations, Axios reported. The outlet said it had reviewed documents related to the claims.
The allegations have not been established, and the White House has not publicly confirmed that any money was misappropriated.
What do the Kennedy Center records show?
According to Axios, there was no record in Kennedy Center accounts of Mildon making a contribution close to $5.6 million.
Kennedy Center staff reportedly searched for a contribution believed to be worth about $6 million late last year but were unable to locate it, Axios reported citing an official.
However, Lisa Dale, who handled the institution’s finances at the time, said her records showed only a $270,000 pledged donation associated with Mildon.
“There was nothing about $6 million,” Dale told Axios, adding that she would have known about a contribution of that size.
Mildon paid the outstanding $270,000 pledge to the Kennedy Center on Tuesday, according to Axios.
The payment does not establish whether the separately alleged $5.6 million transaction occurred or where the money may have gone.
How has Grenell responded?
Grenell strongly denied Habba’s allegations, saying he had never asked for money to be sent elsewhere under the pretence that it was intended for the Kennedy Center.
“Absurd. I've never asked for one cent to be sent somewhere else pretending it was for the Kennedy Center, and I've never received any payment from him at all,” Grenell told Axios.
He challenged Habba and her husband to provide evidence for their claims, describing them as baseless allegations.
The denial comes as the dispute threatens to widen divisions among senior figures in Trump’s circle.
Grenell previously served as US ambassador to Germany and acting director of national intelligence, while Habba was Trump’s personal attorney and briefly served as US attorney in New Jersey during his current term.
What is the White House investigating?
The White House counsel has asked for documents and evidence supporting the allegations, a White House official told Axios.
“None has come so far,” the official said.
A senior administration official stressed that the allegations had not been verified and warned that the dispute could reflect a misunderstanding.
Trump is nevertheless concerned about the claims, according to administration sources cited by Axios. The president has a personal interest in the Kennedy Center, which has faced controversy over his efforts to add his name to the institution and difficulties with fundraising.
Axios reported that people familiar with Trump’s thinking say he is particularly disapproving of individuals who invoke his name or misuse positions he has entrusted to them.
The White House inquiry will need to establish whether the alleged donation was solicited, how the payment was structured and whether any money intended for the Kennedy Center was diverted.
What is the Venezuela connection?
The dispute has roots in the competing interests surrounding US policy towards Venezuela, Axios reported.
In early 2025, Grenell, acting as Trump’s special envoy, advocated normalising relations with Maduro. Mildon, a Turkish national with substantial business interests in Venezuela, faced potential consequences from Secretary of State Marco Rubio’s harder-line approach towards the Venezuelan government.
According to sources cited by Axios, Grenell and Mildon had developed a friendship through their overlapping interests in Venezuela.
The relationship reportedly deteriorated after Grenell lost an internal administration power struggle with Rubio. The dispute culminated in the US seizure of Maduro on January 3 and his transfer to New York City to face narcotics charges, Axios reported.
The fallout also affected Mildon’s Venezuelan business interests. The New York Times reported that Maduro’s successor, Delcy Rodriguez, revoked one of Mildon’s company contracts to operate state-owned cement plants in June, before reversing the decision after learning of his relationship with Habba.
A source familiar with the matter told Axios that the original revocation was partly prompted by the US government.
Against this backdrop, Habba reportedly discovered that her husband’s alleged Kennedy Center donation could not be traced. She then raised the matter directly with Trump at the White House last Friday.
Why the feud matters for Trump
The allegations place two prominent figures from Trump’s inner circle at odds over a substantial sum of money tied to an institution the President regards as personally important.
The allegations come as the Kennedy Center remains a source of controversy for Trump, including over his efforts to add his name to the venue and questions surrounding its fundraising.
For now, the central questions remain unresolved: whether a $5.6 million donation was actually arranged, whether the money was transferred as alleged and whether any funds intended for the Kennedy Center went missing.