The Trump administration used a secret $500 million no-bid contract for the White House ballroom project | Today’s news

The Trump administration secretly awarded a no-bid contract worth up to $500 million to build a new ballroom in the White House’s East Wing, according to an investigation by The Washington Post, which found that officials used an unusual contracting mechanism to bypass competitive bidding processes that are usually designed to protect taxpayers and ensure transparency.

Trump used a no-bid deal to prepay $500 million for the White House Ballroom

The newspaper reported that the contract was routed through the Executive Residence, a little-known office within the executive office of the president that is exempt from federal requirements that require most agencies to conduct competitive bidding and disclose contract details. The office typically oversees maintenance, equipment, entertainment expenses, and other operational matters related to the executive headquarters.

According to documents obtained by The Washington Post, the confidential agreement with Clark Construction, along with internal correspondence and other records, provides the clearest explanation yet of how the administration has moved forward with one of the most ambitious and controversial projects to remodel President Trump’s White House complex. The records also indicate that Trump was directly involved in negotiating aspects of the project’s cost structure.

A construction crane works on the ballroom of the White House on Monday, June 29, 2026, in Washington. (AP Photo/Julia Demaree Nikhinson)(AP Photo/Julia Demaree Nikhinson)

The East Wing ballroom project is part of a broader administration effort to reimagine prominent federal landmarks in Washington, including upgrades to Lafayette Square, the Lincoln Memorial Reflecting Pool and proposals for other large-scale civic projects.

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While recruiting experts noted that the Executive Residence operates under a statutory exemption from standard federal contracting requirements, some questioned whether the administration should still seek competitive bids given the scale and complexity of the undertaking.

“I would certainly expect them to compete with a project of this size and complexity,” said Anthony Costa, a former General Services Administration official who oversaw complex government real estate projects during a career that spanned four presidential administrations.

Estimated costs for the ballroom have skyrocketed since the project was first unveiled in July 2025. Internal construction estimates reviewed by The Washington Post reportedly rose from about $200 million to as much as $600 million by March of this year, with previous reports suggesting that taxpayers could end up shouldering a substantial portion of the cost.

Trump has repeatedly said the ballroom will be funded primarily by private donations, and previously suggested that Clark Construction offered to take on the project at no charge.

“They said, ‘Sir, we’re going to do it for nothing. That’s the greatest honor,'” Trump told the New York Times in January.

Construction continues on the White House Ballroom in Washington, DC, U.S., June 29, 2026. REUTERS/Aaron Schwartz(REUTERS)

However, internal cost projections reviewed by The Washington Post indicate that McLean, Va.-based Clark Construction, the largest general contractor in the Washington metropolitan area, stands to make tens of millions of dollars on the project. Records show the company charged a 3% profit margin for its initial work on the east wing, which experts describe as in line with large-scale government construction projects.

Although the records do not detail the company’s projected profit margin on the entire project, the March document reportedly estimated that Clark would receive about $65 million through a combination of profit, overhead, personnel costs and other fees. The investigation also found that several subcontracting arrangements associated with the project were awarded without a competitive tendering process.

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The project has already faced legal challenges. Earlier this year, a federal judge ruled that the president’s authority to alter the White House complex did not extend to demolishing the East Wing and building a new ballroom without additional permission, though the administration appealed that decision.

In response to questions from The Washington Post, a White House official said the East Wing contract was awarded through the Executive Residence because that office “will be the primary supporter of the facility.” The official added that the executive residence, which is part of the executive office of the president, “consistently executes contracts according to law.”