On Thursday, Senator Joni Ernst from Iowa raised concerns in a letter to the General Services Administration (GSA) about the potential risk of the federal government defaulting on many of its building leases during the ongoing government shutdown.
In her letter to Acting Secretary Michael Rigas, Ernst inquired about the more than 7,000 leases the federal government holds, specifically asking how many might be at risk of default due to the shutdown. She pointed out that a number of government agencies could be compelled to vacate their buildings if rental payments aren’t made, as revealed in a letter shared with the Daily Caller News Foundation.
Ernst noted that the GSA oversees over 7,400 federal leases, costing taxpayers around $3.6 billion annually. This translates to hundreds of millions spent each month on rent. She mentioned that 60 of these properties are located in Iowa, utilized by agencies like the Departments of Treasury, Homeland Security, and Transportation. “If Washington fails to be a reliable tenant by not making timely rent payments, this could make it harder for taxpayers to access government services,” she wrote.
Ernst continued to question Rigas about the effects of missed rent payments, requesting a response by Wednesday. “What financial repercussions would there be if GSA defaults on its lease obligations? How would this impact taxpayers?” she asked. In addition, she asked, “If funding doesn’t return, how many leases will GSA default on next month?”
She also sought clarification on whether federal agencies would be evicted from leased buildings if rent payments were missed and how lease defaults might affect GSA’s future profitability.
The GSA responded to inquiries, confirming they had secured temporary funding for November’s rent. However, they did not address whether they could maintain rental payments if the shutdown extends beyond that month.
“We appreciate Sen. Ernst’s support for our mission. Fortunately, GSA will avoid falling behind on its November lease payments,” stated GSA spokeswoman Marianne Copenhaver. She expressed hope for a Congressional resolution to reopen the government, allowing the agency to continue its efforts in streamlining federal real estate.
Sources informed the Daily Caller News Foundation that the threat of rent defaults remains as long as the government shutdown persists. The GSA, however, did not comment on how it is financing the rent owed under its leases.
“The federal government’s extensive real estate portfolio is incredibly wasteful, underutilized, and costly for taxpayers, and it’s time for a reduction,” Ernst remarked. She criticized the ongoing shutdown, claiming it has caused significant hardship and drained taxpayer funds. She indicated her commitment to consolidating unused office space and selling surplus properties to enhance government efficiency.
Ernst has been investigating the government’s real estate assets. A December 2023 memo from the Government Accountability Office (GAO) revealed that only six of the 24 agencies surveyed had occupancy rates below the Department of Transportation’s 14%, with the Social Security Administration seeing the lowest at 7%. Ernst’s office conveyed that all federal agencies are utilizing less than half of their allocated office space.
In a recent tweet, Ernst expressed her intent to propose legislation to expedite the sale of underused government real estate, aiming to generate significant revenue and save taxpayer dollars.
Ernst introduced a bill related to the disposal of non-operating structures and real estate, culminating in the planned sale of six major federal buildings in Washington, DC. This initiative is projected to generate $400 million while also saving $2.9 billion in maintenance costs, along with streamlining the sale process for additional properties.
Additionally, Ernst published a report in December 2024 discussing telework and the negative effects of predominantly vacant office buildings on workplace quality.
