Federal Building Reconfiguration and Redevelopment May Be Ripe for Federal/District Collaboration

The Mayor has clearly and repeatedly stated her desire to increase federal workers’ presence in DC. Last week, Bowser’s push seemed to make noteworthy progress when President-elect Donald Trump and she met. The Mayor later noted their discussion regarding underutilized federal buildings, specifically that “We discussed areas for collaboration between local and federal government, especially around our federal workforce, underutilized federal buildings, parks and green spaces, and infrastructure.”

Even before 2020, however, many federal buildings have been chronically underutilized and even unutilized, both in the District and across the country. Reconfiguration, consolidation, and even redevelopment of federal buildings can reduce federal costs and enable higher-value, non-governmental use to promote local economic development. The Trump-Bowser meeting confirms the issue may be a top area for collaboration between federal and DC officials. Upcoming Congressional and Administration activities scheduled for this month may help to clarify areas of likely short-term focus.

Longstanding Underutilization of Federal Buildings

Underutilization of federal assets is not a new problem. Long before the pandemic, the US Government Accountability Office (GAO) identified “managing federal real property” as a “high-risk” government area in 2003. In an attempt to streamline sales of federal buildings, the Federal Assets Sale and Transfer Act of 2016 (FASTA) established the temporary Public Buildings Reform Board (PBRB), an independent federal agency with responsibility to identify federal assets for potential sale. The GAO has reported the FASTA process has been mired with setbacks, including management challenges within the General Services Administration (GSA), which is responsible for managing federal real property.

Recent government reports have highlighted current underutilization of valuable properties, especially in DC. In 2023, the GAO released survey findings that 17 out of 24 federal agencies used 25% or less of headquarters buildings’ capacity. No agency surveyed used more than half of headquarters capacity over the surveyed period in 2023. The report identified both financial and environmental costs associated with underutilization. Then in March 2024, the PBRB released an interim report to Congress presenting findings about federal building underutilization following the pandemic, with a particular focus on federal buildings in the District. The PBRB conducted its own study using cell phone data during a surveyed period in 2023 to estimate usage of federal buildings in DC. That method produced estimates ranging from 2% to 26% of capacity at various federal buildings in the District.

In the 118th Congress, bipartisan members introduced and advanced legislation to reform FASTA and extend operation of the PBRB. The Senate bill, led by Senator Mark Kelly (D-AZ) and Kevin Cramer (R-ND), S. 3880, was reported by the Senate Environment and Public Works Committee. The House companion, H.R. 6277, led by Representatives Scott Perry (R-PA-10) and Dina Titus (D-NV-1), passed the chamber by voice vote. Support for the PBRB’s continued operation is likely to continue in the 119th Congress. The District’s own member of Congress, Congresswoman Eleanor Holmes Norton (D-DC), has served as both the Chair and Ranking Member of the Public Buildings Subcommittee in the House, which has jurisdiction over GSA matters, and has long been a champion of full utilization of public buildings.

Early Opportunities for Engagement and Improvements in Utilization in 2025

Congressional leaders have announced the formation of two relevant caucuses for the new Congress that are likely to investigate federal building utilization. Senator Joni Ernst (R-IA) has founded and will chair the Senate Department of Government Efficiency (DOGE) Caucus. At the same time as she announced the formation of the caucus, she released a 60-page report that discusses federal building use and cites to aforementioned PBRB and GAO analyses. Representatives Aaron Bean (R-FL-4), Pete Sessions (R-TX-17), and Blake Moore (R-UT-1) are co-chairing the House DOGE Caucus, made bipartisan with the joining of Representative Jared Moskowitz (D-FL-23).

President-elect Trump has not yet announced a nominee to lead the GSA, which is the agency responsible for federal building management and use. With an already packed January, that confirmation process likely will not kick off in earnest until February at the earliest for a GSA Administrator. Other forums in January will preview Administration and Congressional priorities regarding federal building use, however. Confirmation hearings for cabinet-level nominees slated to begin the week of January 13 may showcase Congressional interest as prospective agency heads are asked their leadership plans for managing workforces.

Another meeting to watch in January off the Hill will be a scheduled January 28 meeting of the PBRB. Given the attention paid by Members of Congress to PBRB findings and activities, that meeting could unveil areas of additional, future Congressional oversight and incoming Administration interest.

ArentFox Schiff has a robust GSA and infrastructure practice, has assisted clients with federal building use and redevelopment, and is closely monitoring developments. The AFS Government Relations group includes former Republican Chief Counsel of the Senate Committee on Environment and Public Works (the Senate Committee with jurisdiction over federal buildings) Elizabeth L. Horner, former Democratic Staff Director of the House DC Subcommittee and Chief Counsel and Legislative Director to Congresswoman Eleanor Holmes Norton (D-DC) Jon S. Bouker, and former at-large DC Councilmember David P. Grosso. Please do not hesitate to contact us with any questions about this issue or any other matter that may affect you and your business.