Senator Cramer questions federal witness on unused federal property, highlights solutions to stop wasteful policies

WASHINGTON – U.S. Senator Mark Kelly (D-AZ), Chairman, and U.S. Senator Kevin Cramer (R-ND), Lead Member, today held a hearing of the Senate Environment and Public Works (EPW) Committee on Transportation and Infrastructure focusing on the General Services Administration (GSA) Public Buildings Service (PBS).

Commissioner Elliot Doomes testified before the subcommittee on behalf of GSA. The oversight hearing focused on GSA’s management of the federal government’s vast real estate portfolio, which encompasses more than 363 million square feet nationwide in nearly 8,400 buildings.

A recent Government Accountability Office (GAO) study released last October found that 17 of 24 federal agencies surveyed were using an average of about 25 percent or less of their headquarters building capacity. In 2023 alone, federal agencies reported more than 5,000 buildings as underutilized or underutilized. This long-standing problem has worsened as agencies have adopted remote and telework policies.

In his opening statement, Cramer explained that while the latest numbers are shocking, this is not a new problem. “In 2003, GAO has placed the management of federal buildings on its high-risk list because of the high financial costs of unused space and the complex, seemingly impossible process of actually disposing of these properties. Simply put, like most things, the federal footprint is too large and nearly impossible to reduce. … The current practice of spending billions of taxpayer dollars per year to operate federal buildings, regardless of their use, must end. I remain committed to working in a bipartisan manner on this committee to find solutions because this problem cannot go unaddressed. I understand that more than 50 percent of GSA’s managed leases expire by 2027, and I encourage the agency to take full advantage of this opportunity to properly adjust the size of its federal property portfolio. In fact, I believe it would be remiss not to do so.”

***Click here to watch his opening remarks. Click here for audio.***

Citing the GAO report on building utilization, Cramer asked Commissioner Doomes to explain the actions his agency has taken to ensure better use of federal buildings.

“For me at least, and probably the most disturbing finding of this report was the revelation that most federal agencies were using 25 percent or less of their central building space.” he stated Cramer. “But what was equally disturbing to me was that the highest average utilization was still below 50 percent, which paints a pretty disturbing picture of mismanagement. … Since the report was released, can you tell me some of the actions that GSA has taken in that capacity to make sure that federal office space is better utilized where possible, and then trying to find ways to eliminate waste of taxpayer dollars, and if that’s not possible, what actions or suggestions you would have for the future?”

***Click here to download video. Click here to download audio.***

He also discussed the possibility of disposing of unneeded assets in the coming years and asked Commissioner Doomes about the potential market for such properties.

“The Public Housing Reform Board has concluded that billions of dollars are being spent on buildings that should be thrown out, given the new norm of low occupancy rates.” Cramer asked. “But we have an opportunity. I mentioned in my opening statement that over 50 percent of leases expire in 2027. So assuming that’s a high number of upcoming expirations, you’re on a path toward more consolidation, and divestment seems like a good idea. But I have a pretty basic market question: Is is there a market? (…) What can you tell me about the market for buildings that could be sold if a buyer were found for them?”

***Click here to download video. Click here to download audio.***

Congress passed Federal Asset Sale and Transfer Act (FASTA) in 2016. In an effort to save taxpayers money, efforts were made to streamline the process of disposing of unneeded federal buildings, land, and structures. After completing the first two rounds of disposal, the Public Buildings Reform Board (PBRB) identified numerous challenges affecting Fast as overall effectiveness. In October, Cramer Ranking Member and EPW T&I Chairman Mark Kelly (D-AZ) presented FASTA Reform Act to solve existing problems QUICK and help facilitate a successful final round. Their bill was adopted by the EPW Committee in May.