Trump Administration Quizzed on Disposal of Unused Federal Real Estate

Is the Trump Administration and its Department of Government Efficiency (DOGE) moving too quickly in disposing of federal real estate, including selling in a down commercial real estate market.

That was a heated question at a recent hearing before the House DOGE subcommittee that was held in the Wilbur J. Cohen Federal Building in Washington, DC, one of the federal buildings slated to be sold.

Republicans like subcommittee chair Marjorie Taylor Greene (R-GA) point out that the federal government is wasting billions a year on unused and underused federal real estate, and that she supports a “fire sale” of federal real estate, even if it’s on the cheap. 

“When you sell these buildings, you give a good opportunity to an American taxpayer to buy — buy a federal property or buy federal land and turn it into, basically, a tax-generating property,” said Representative Greene. 

The Georgia congresswoman also cited Government Accountability Office (GAO) statistics which found that just 25 percent of federal agency headquarters space in Washington, DC, was utilized in 2023, and that the backlog on federal building maintenance doubled to $370 billion from fiscal years (FYs) 2017 to 2024. 

Democrats argued that a more measured approach is needed for the disposal of federal real estate. 

“The Trump administration is taking a fire sale approach of looting the federal government and stripping its parts to pay for tax cuts,” said subcommittee ranking member Melanie Stansbury (D-NM). 

Also testifying was John Hart, CEO of the watchdog group OpenTheBooks. Hart repeatedly discussed the Biden Administration’s spending on furniture, including $238,000 for solar picnic tables at the Centers for Disease Control and Prevention (CDC) and nearly $120,000 for Ethan Allen leather recliners at the U.S. Embassy in Pakistan.

GSA List

The hearing comes after the General Services Administration (GSA) did an about face on buildings listed for potential sale.

In early March, GSA announced more than 440 “non-core” government buildings for potential sale. That list was later taken down, and the agency has just 16 properties marked for “accelerated disposition.” GSA switched to an incremental approach to the disposition of property after receiving an overwhelming initial response.

That measured approach was hailed by GAO acting director for physical infrastructure David Marroni who says the decision to take an incremental approach is a positive step. Marroni noted that “speedy reductions” should be balanced with “deliberate planning.”

That was echoed by Ron Kendall, executive chairman emeritus of the National Federal Development Association. 

“Disposal is not the enemy. It's how it is done, and it must be done carefully with deliberate study,” said Kendall. 

For his part, Kendall questioned why certain buildings were on the initial list, including the Department of Justice main building.

He also called selling property in a down market “folly.”