During the pandemic, the U.S. government established the Shuttered Venue Operators Grant (SVOG) to support struggling entertainment venues and arts organizations. However, a recent investigation by Business Insider reveals that several high-profile musicians, including Lil Wayne, Chris Brown, and others, utilized these funds in questionable ways, diverting millions of taxpayer dollars to personal luxuries, parties, and payouts to themselves and their managers.
The program, signed into law by then-President Donald Trump in 2020 and championed by lawmakers like Senator Chuck Schumer, aimed to provide relief to arts groups devastated by pandemic restrictions. Eligible recipients included independent venues, theaters, and performing arts organizations. Musicians were not explicitly listed as eligible, but an interpretation of the law by the Small Business Administration (SBA) later allowed artists’ corporate entities, known as loan-out companies, to qualify.
Lil Wayne, whose real name is Dwayne Carter Jr., received an $8.9 million grant. Records show he used the funds to cover private jet flights, luxury hotel stays, and high-end clothing purchases, including more than $1.3 million on flights and over $460,000 on designer items. Some of the money went toward expenses for a music festival promoting his marijuana brand. Notably, $88,000 was billed for a concert he ultimately did not perform, citing weather issues, though other private jets reportedly completed similar routes that day. Neither Lil Wayne nor his representatives responded to requests for comment.
Chris Brown’s company received $10 million from the grant program, with $5.1 million going directly to Brown as “owner compensation.” He also charged $80,000 for his 33rd birthday party, which featured luxury amenities such as an LED dance floor and body-painted models. Other expenditures included a celebrity basketball tournament and a tour bus trip to Mexico, neither of which were directly tied to pandemic-related recovery. Brown also did not respond to requests for comment.
Lil Wayne and Chris Brown reportedly spent nearly $14 MILLION in pandemic-relief grants on private jets, parties, and more, according to @BusinessInsider.
The grant was given out as “a lifeline for struggling independent venues and arts groups during the pandemic.” pic.twitter.com/1zCZi04mu1
— Pop Crave (@PopCrave) December 19, 2024
Other recipients included Marshmello, Steve Aoki, members of Alice in Chains, and Rae Sremmurd, with funds frequently directed toward personal payouts far exceeding payments to touring staff or production crews. For example, Alice in Chains distributed $3.4 million of their $4.1 million grant to three band members while a longtime crew member launched a GoFundMe campaign after receiving no health insurance or substantial support from the band.
The SBA, tasked with overseeing the program, implemented fraud controls but faced challenges in ensuring funds were used appropriately. While grantees had to demonstrate revenue losses and submit statements of need, the law did not require the SBA to examine personal wealth or assets. This loophole allowed artists with substantial resources to access millions in federal aid.
Critics, including government accountability experts, have questioned the ethics of how these funds were spent. David Walker, a former U.S. comptroller general, noted that while some uses may not be illegal, they raise serious concerns about the program’s implementation.
Senator Gary Peters, chair of the Homeland Security and Governmental Affairs Committee, condemned the misuse, stating that pandemic relief should prioritize those in genuine need rather than wealthy celebrities.
The SBA reported recouping $43 million in misused funds as of late 2023, but billions remain under review. Documents revealed that internal pressures and rushed administration may have contributed to lax oversight, allowing questionable expenses to go unchallenged.
While the SVOG program helped many legitimate arts organizations survive, such as Arizona Actors Academy, which credited the grant with saving their operations, revelations about misuse have cast a shadow over the initiative. Critics fear the controversy could erode public trust in government arts funding, highlighting the need for more stringent oversight in future relief efforts.
