GAO highlights federal agencies' office space underutilization and potential savings

The U.S. House Committee on Oversight and Government Reform convened on April 1, 2025, to address the pressing issue of federal real estate portfolio management, revealing significant underutilization of office space across various agencies. A recent survey conducted by the Government Accountability Office (GAO) highlighted that none of the 24 surveyed agencies were using more than half of their office space in the Washington, D.C. area, with 17 agencies utilizing less than 25%. This inefficiency raises concerns about wasted taxpayer dollars, with potential savings estimated at $8 billion annually if the federal government had acted sooner to right-size its property portfolio in response to the shift towards telework post-pandemic.

The discussion emphasized the need for better data to assess current utilization rates, as the last comprehensive survey was conducted in 2023. The GAO noted that agencies such as the Department of Housing and Urban Development (HUD) and the Social Security Administration (SSA) were among the worst offenders in terms of office space underuse. The committee members expressed urgency in addressing these inefficiencies, recognizing that substantial financial savings could be achieved through strategic reductions in federal office space.

Additionally, the meeting touched on the importance of transparency in government spending, referencing the platform usaspending.gov, which consolidates federal financial data to allow taxpayers to track how their money is being spent. This tool is seen as vital for holding the government accountable and ensuring that taxpayer funds are used effectively.

As the committee continues to explore solutions to reduce the federal real estate portfolio, the implications of these discussions could lead to significant reforms in how federal agencies manage their office spaces, ultimately benefiting taxpayers and improving government efficiency. The next steps will involve awaiting updated data on office space utilization and considering legislative measures to enforce better management practices.