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House panel examines Trump administration push to shrink federal real estate footprint

April 08, 2025 | Oversight and Reform: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation


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House panel examines Trump administration push to shrink federal real estate footprint
Chairwoman Greene convened the House Oversight Subcommittee on Delivering on Government Efficiency (DOGE) to review the Trump administration’s efforts to reduce the federal government’s real estate footprint and end costly leases.

The subcommittee heard testimony from David Maroney, a director on GAO’s physical infrastructure team, who said the federal government has held on to too much space and that long-standing data problems have hampered sound decisions. “The pandemic shined a spotlight on these long standing problems and created a unique opportunity to right size the federal government's property holdings,” Maroney said. He also warned that “there is a risk of moving too fast” and urged balancing speedy reductions with deliberate planning so agencies can avoid costly relocations and preserve mission continuity.

The hearing focused on several factual points raised by witnesses and members: GAO has for years identified federal real property management as a high‑risk area; federal agencies and leased space together create roughly half a billion square feet of office space; and the backlog of deferred maintenance cited in the hearing reached $370,000,000,000 in recent reporting. Committee members and witnesses highlighted that many headquarters buildings were significantly underused — GAO’s 2023 analysis found 17 of 24 largest federal agencies used 25% or less of their headquarters capacity.

Supporters of the administration’s approach pointed to rapid early actions: committee testimony and members referenced nearly 700 leases canceled totaling about 7.9 million square feet and an administration estimate of roughly $400,000,000 in savings from those cancellations. Witnesses agreed disposals can generate savings but emphasized sequencing decisions and reliable occupancy data as essential to avoid market disruption and mission impacts. Maroney said agencies will begin collecting utilization data in July under the recent statute and that the new data “will help inform efforts” and should be used to sequence disposals.

Opponents warned of short‑term market effects and operational harms. Several members called the administration’s initial published disposal lists “a fire sale” and noted that selling many high‑value properties at once — particularly into a weak commercial real estate market — could depress sale proceeds and harm local economies. Witness Ron Kendall, a former senior GSA official, urged protecting “core portfolio” buildings that support Federal Buildings Fund performance and recommended disposing of noncore properties only when appropriate and sequenced, not precipitously.

The hearing also covered staffing and implementation questions: members raised concerns about planned GSA workforce reductions and whether GSA had consulted GAO on its disposal plans. Maroney and other witnesses said planning, data collection, and funding for moves and consolidations are necessary components for cost‑effective rightsizing.

The subcommittee did not take legislative or formal committee action during the hearing. Members on both sides emphasized the need for more complete utilization data and careful sequencing before large‑scale disposals proceed.

Looking ahead, GAO testimony and multiple members signaled that utilization reporting required by recent law will arrive this summer and that the subcommittee will use those data to press for clearer plans and sequencing decisions. The witnesses said deliberate planning, protection of mission‑critical properties, and attention to market timing would reduce the risk of unnecessary costs or operational disruptions.

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