Donald Trump's administration has quietly redirected $352 million in federal funds originally designated for the Secret Service to finance the president's controversial White House ballroom project, contradicting Trump's repeated assurances that the construction would be funded entirely by private donations.
Funds Diverted from Secret Service Budget
The money was drawn from the One Big Beautiful Bill Act, Trump's signature tax legislation passed last summer with only Republican support. The law explicitly states the funds may only be used for Secret Service personnel, training facilities, technology, and related expenses—not construction.
According to the Office of Management and Budget (OMB) database, approximately $340.8 million was placed into an account labeled "Procurement, Construction, and Improvements" on 12 June. Another account called "Operations and Support" was approved the same day, adding an additional $10.75 million to the budget.
This move follows Congress's refusal to provide $1 billion for the "East Wing Modernization Project," the official name for a 90,000-square-foot ballroom being built on the site of the demolished White House East Wing.
Administration Defends Spending
The administration argued the funds were necessary for legitimate security upgrades, citing recent threats against Trump, including an alleged plot to attack Sunday's UFC Freedom 250 event on the White House south lawn.
"The East Wing Modernization Project is inextricably tied to the security of the president, the White House grounds and the certain security infrastructure assets," White House spokesperson Davis Ingle said. "President Trump and generous American patriots are funding the ballroom to the tune of approximately $400 million, which will be a secure and appropriate venue for presidents for generations to come."
Ingle added that the disrupted attacks "proves exactly why" the project is needed for White House events, which include "drone-proof structures and drone ports among other critical security enhancements."
Lawmakers Express Concerns
Senior legislators were skeptical of the administration's justification. "That's a big problem," Senator Thom Tillis, a retiring Republican from North Carolina, told Notus. "That sounds like a different way to fund the East Wing project. On its face it doesn't sound right."
Democratic Senator Brian Schatz of Hawaii, who serves on the appropriations committee, also told the outlet: "I don't know whether it's the ballroom, but it sounds like the ballroom."
Ongoing Controversy Over Financing
The dispute marks the latest chapter in a widening controversy over who is actually paying for the project. When the ballroom was announced in July 2025 at an estimated cost of $200 million, Trump described it as "a private thing." The East Wing was demolished in October.
In late March, with estimates doubling to $400 million, Trump insisted: "This is taxpayer-free. We have no taxpayer putting up 10 cents."
However, internal records obtained by the Washington Post from Clark Construction, the firm leading the project, show plans calling for $155 million from Secret Service funds, $149 million from the White House military office, and $3 million from the executive residence—all public money—alongside private contributions. The Washington Post has reported total costs could reach $600 million.
Private Fundraising Under Scrutiny
The private fundraising side has also drawn scrutiny. Watchdogs including the Campaign Legal Center have warned that donations from major corporations such as Meta, Coinbase, and Lockheed Martin—all of which have significant interests before the US federal government—create a substantial risk of corruption.
Construction remains subject to ongoing legal challenges. A federal judge ruled in March that the administration had probably exceeded its authority in demolishing the East Wing without congressional approval.
