Press Releases

Opening remarks, as prepared, of Economic Development, Public Buildings, and Emergency Management Subcommittee Chairman Scott Perry (R-PA) from today’s hearing, entitled, “Cutting Costs, Adding Value: The Future of Federal Property”:

Earlier this year, this subcommittee held a hearing to discuss how we could make federal real estate work for the American taxpayer.

Legislation that Congress has enacted, like the USE IT Act and the Federal Asset Sale and Transfer Act (FASTA), are intended to operate in lockstep to improve abysmal space utilization rates, hold agencies accountable for the amount of space they use, and right-size the federal footprint.

As the Public Buildings Reform Board continues to deliberate its next round of recommendations, I look forward to hearing about the progress that’s been made since our last hearing and ensuring that reforms we passed last year are helping. With an anticipated $5.4 billion in savings from its “Second Round” recommendations, this next round serves as an opportunity to realize even more savings for the taxpayer.

I am also pleased that the GSA is taking aggressive action to reduce costs, including taking steps to move HUD, to allow for the sale of the Weaver Building. Shaving off excess, however, will not unilaterally rectify the numerous challenges we face in federal property, as the maintenance of the buildings is becoming increasingly costly to keep up.

The deferred maintenance liability grew from a mere $1 billion in fiscal year 2017 to a whopping $6 billion by fiscal year 2022; and that’s just what the GSA reported. In fiscal year 2022 civilian agencies reported a collective deferred maintenance liability of $80 billion.

We need to get a handle on these costs. The Administration is moving to reduce taxpayer liability and costs, but there are critical authorities and tools we provided to the GSA in reforms signed into law in January of this year. To ensure those tools can effectively be used, it’s important that the GSA ensures key deadlines are met.

For example, in January of 2026, all federal agencies should be reporting to the GSA, the OMB, and Congress the data on their space occupancy, methodology used, utilization rates, and the costs associated with any excess space. Also, by next month, all federal office space is required to have an actual building utilization rate of at least 60 percent, and those buildings that don’t have one year to correct or the agencies are moved out and the space sold or relinquished.

Finally, next January, the OMB and the GSA are to submit a plan to consolidate federal agency headquarters in the national capital area to meet the minimum 60 percent building occupancy rate. The GSA was required to amend its occupancy agreements with its tenant agencies to ensure those agencies agree to provide the data that the GSA needs. The GSA’s proposed capital investment projects are required to prioritize buildings that meet or exceed the 60 percent utilization threshold. There are additional requirements on the information provided to the Committee in prospectuses, and the GSA is now required to report on key milestones on all prospectus-level projects. It is critical for the GSA to meet these deadlines and requirements, not only to save taxpayer dollars, but to ensure accountability and transparency over the long-term.

I look forward to hearing from the GSA on where we are on right-sizing the portfolio and implementing these reforms. While the state of federal real estate continues to face an uphill battle, the policies of this Congress and the Trump Administration have, and will continue to, accelerate this important corrective work.

Click here for more information from today’s hearing, including video and witness testimony.