New Legislation Could Sell Off Major Federal Buildings in D.C., Saving Billions

A bold new proposal from Sen. Joni Ernst (R-Iowa) could reshape Washington, D.C.’s real estate footprint and inject hundreds of millions of dollars into federal coffers. The bill, titled the Federal Office Realignment and Sale of Assets for Leveraging Efficiency (FOR SALE) Act, aims to put several high-profile federal buildings on the auction block.

Six iconic federal office buildings in the heart of the nation’s capital including the Department of Agriculture’s South Building and the Hubert H. Humphrey Federal Building are among those marked for sale. If passed, the FOR SALE Act could generate over $400 million in revenue while wiping out as much as $2.9 billion in backlogged maintenance costs tied to these aging properties.

Cutting Dead Weight in Federal Real Estate

Sen. Ernst, chair of the Senate’s DOGE (Department of Government Efficiency) Caucus, said the time has come for the government to trim its bloated real estate holdings especially as remote work has left many office spaces nearly deserted.

“Uncle Sam might be the country’s biggest landlord, but he’s certainly not the smartest,” said Ernst. “Taxpayers are stuck footing the bill for buildings the government doesn’t even use. It’s time to clear out the cobwebs, list these money pits for sale, and stop playing a losing game of Washington-opoly.”

The bill highlights six government-owned facilities that could soon be on the market:

• Department of Agriculture South Building
• Hubert H. Humphrey Federal Building
• Frances Perkins Federal Building
• James V. Forrestal Building
• Theodore Roosevelt Federal Building
• Robert C. Weaver Federal Building

All six are located in the Washington, D.C. metro area and are either outdated, underutilized, or both.

The Scope of the Problem

The proposal follows a December 2023 report from Sen. Ernst, where she revealed that some federal agencies were operating at just a fraction of their office space capacity. At the top of her “naughty list” were the Department of Housing and Urban Development (HUD) and the Social Security Administration, both using just 7% of their available office space.

An August 2024 Report to Congress on Telework and Real Property Utilization from the Office of Management and Budget (OMB) found that federal agencies continue to spend over $81 million annually maintaining tens of thousands of vacant or barely-used properties. That includes nearly 7,700 completely empty buildings and another 2,265 classified as “significantly underutilized.”

Even the General Services Administration (GSA) the agency responsible for managing government real estate acknowledged the issue earlier this year by announcing a plan to cut 3.5 million square feet of federal office space, saving taxpayers more than $1 billion over time.

Remote Work’s Lasting Impact on Real Estate

The shift to hybrid and remote work has dramatically reduced the need for traditional office space in the public and private sectors alike. Ernst’s proposal leverages this shift by pushing the federal government to reduce its real estate holdings rather than maintain unnecessary overhead.

“While many private companies have adapted and downsized, the federal government continues to cling to buildings that are practically empty,” said Ernst. “This bill is about recognizing that times have changed and our approach to real estate should change with them.”

Potential Windfall for Taxpayers and Developers

In addition to trimming billions in upkeep costs, the FOR SALE Act opens the door to repurposing valuable land in prime locations. Many of the buildings listed in the bill sit on high-demand real estate in the D.C. area, meaning private developers could transform them into housing, commercial space, or mixed-use projects offering both tax revenue and new infrastructure.

Urban planning experts suggest that selling underused federal buildings could also help alleviate some of the region’s housing crunch if new residential development is prioritized.

Next Steps

The FOR SALE Act will head to committee in the coming weeks, with bipartisan support seen as possible, given the growing awareness of government inefficiency and real estate waste. However, critics may raise concerns about historic preservation or displacement of federal workers.

Still, supporters argue that with the federal debt now topping $37 trillion, tough choices are needed. “We can’t afford to keep pouring money into ghost buildings,” Ernst said. “Let’s put these properties to better use—and give taxpayers the break they deserve.” For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.