New Legislation to Sell Underused Federal Properties
Senator Joni Ernst from Iowa announced on Thursday her plan to introduce legislation aimed at allowing the Trump administration to sell off underutilized federal buildings, as reported by Fox News Digital.
Ernst expressed concern, saying, “Despite President Trump’s calls for federal employees to return to work, vacant government buildings could easily be mistaken for potential Spirit Halloween store locations.” She added that, “For too long, entrenched bureaucracies have obstructed efforts to sell these ghost towns.” Her proposed legislation would focus on six prime properties in Washington, D.C., aiming to streamline the process and eliminate unnecessary regulations, potentially generating hundreds of millions in revenue while saving taxpayers billions.
As the founder of the Senate Office of Government Efficiency Caucus, Ernst highlighted the issue of unused federal structures, first drawing attention to it in 2023 with a list of federal agencies that were largely inactive during pandemic-related shutdowns.
The legislation, known as the Disposal of Unoccupied Structures and Assets by Sale and Offer for Lease (Disposal) Act, seeks to kickstart efforts to sell six specific federal properties in D.C. These include the Francis Perkins Federal Building and the James V. Forrestal Building, among others.
Data from Ernst’s office indicates there are approximately 7,700 federal buildings nationwide, with more than 2,200 of them largely vacant. The Office of Management and Budget noted that the annual operating costs of these underutilized buildings were around $81 million. Furthermore, the General Services Administration reported a maintenance backlog exceeding $6 billion, projected to rise to over $20 billion in five years.
News reports have indicated deteriorating conditions in some federal buildings, including issues like mold and undrinkable water.
If the legislation passes, it would facilitate future sales of federal buildings. It aims to simplify the sales process by allowing the General Services Administration (GSA) to sell up to 20 additional properties each year, depending on what is deemed in the “best interest of the United States.”
Former President Donald Trump has consistently criticized the inefficiency of federal workers who remained absent since the onset of the pandemic. He has pledged to reduce governmental size and eliminate unnecessary spending and fraud.
In past efforts, Ernst and her team effectively sold the Wilbur J. Cohen Federal Building, which had seen decreased occupancy, with only 72 employees remaining as of 2024.
Interestingly, some HUD offices were reportedly found with outdated business cards from the first Trump administration still stuck on whiteboards upon the arrival of the next administration.
Ernst’s new bill follows a similar proposal she introduced in June, aimed at selling six federal properties projected to yield at least $400 million while alleviating around $2.9 billion in maintenance liabilities.
