GAO reviews mismanagement of federal properties and $250B waste on luxury relocations

The U.S. House Committee on Oversight and Government Reform convened on April 1, 2025, to discuss the pressing issue of federal foreclosure and the management of the federal real estate portfolio. The meeting highlighted longstanding concerns regarding the government's handling of its properties, which has been on the Government Accountability Office's (GAO) high-risk list for over two decades.

During the session, committee members expressed frustration over the administration's apparent disregard for nearly 60 GAO recommendations aimed at improving federal property management. One member criticized the administration for what they described as a "fire sale" approach to government buildings, suggesting that the focus should instead be on more strategic financial management, including addressing tariffs and other fiscal policies.

A significant point raised was the lack of reliable data to support decision-making regarding the disposal of federally owned buildings. Witnesses testified that the General Services Administration (GSA) has not effectively consulted with the GAO on plans to reduce the federal real estate portfolio, which includes approximately 277,000 buildings. Concerns were voiced about the efficiency of the GSA's workforce and whether reducing its size could enhance data gathering and analysis.

The discussion also touched on the financial implications of maintaining underutilized properties. One member pointed out that many federal buildings are operating at significantly low occupancy rates, with some as low as 14%. This inefficiency translates into substantial costs for taxpayers, with estimates suggesting that maintaining certain properties can exceed $182,000 per employee annually.

In conclusion, the committee's meeting underscored the urgent need for a comprehensive strategy to manage federal real estate more effectively. The discussions revealed a consensus on the importance of improving data collection and analysis to inform decisions about property management, ultimately aiming to reduce the financial burden on taxpayers and enhance the efficiency of government operations. The committee plans to continue its oversight efforts to ensure that the administration addresses these critical issues.