NW Kentucky News

The Subcommittee on Delivering on Government Efficiency (DOGE) recently convened a field hearing titled "Federal Foreclosure: Reducing the Federal Real Estate Portfolio," highlighting an ongoing issue of federal real estate management. Held at an underutilized federal building in Washington, D.C., the hearing addressed the federal government's extensive spendings on outdated and underutilized office spaces and praised efforts deployed by the Trump Administration to curb this trend.

Federal real property management has remained on the Government Accountability Office’s (GAO) High-Risk List for over two decades due to prior failures to reduce unneeded real estate. David Marroni, the Acting Director of Physical Infrastructure at the GAO, testified, “According to the most recent official statistics from fiscal year 2023, the federal government owns about 420 million square feet of office space that cost nearly two billion dollars annually to occupy, operate, and maintain.”

Marjorie Taylor Greene, Chairwoman of the Subcommittee and Representative for Georgia, criticized previous administrations’ inaction and emphasized the rising costs associated with deferred maintenance on federal buildings. From 2022 to 2024, the maintenance backlog increased significantly from $216 billion to $370 billion.

A notable point in the hearing was presented by John Hart, Chief Executive Officer at Open the Books, who highlighted lavish spending on office furniture during low occupancy periods in the pandemic. He said, “Since fiscal year 2021, executive agencies have spent more than $4.6 billion on furniture alone. That amount could buy 9.2 million American families a modest $500 kitchen table.”

The Trump Administration’s decisive actions to streamline federal real estate holdings were acknowledged. In early 2025, the General Services Administration (GSA) was instructed to sell underutilized federal properties. The administration’s efforts resulted in the termination of 657 leases, saving at least $350 million.

David Marroni pointed out areas needing better management, adding, “Better management of the federal government’s real property portfolio is needed to effectively dispose of underused buildings, collect reliable real property data, enhance the security of federal facilities, and improve the condition and configuration of federal buildings.”

Rep. Greene, emphasizing the importance of the administration’s role, stated the need for a partner in the White House to implement changes to the federal real estate footprint and save taxpayer dollars by reducing unnecessary federal properties.

Rep. Fallon and Rep. Jack were among the members who questioned federal expenditures and underutilization of federal buildings. Discussions at the hearing indicated significant savings could be achieved through strategic real estate management. As Marroni noted, “It’s about $8 billion a year on owned and leased office space.”

The hearing underscored the need for continued efforts to manage federal real estate efficiently, with the DOGE Subcommittee committing to work alongside the administration for sustainable results.

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