Trump Orders Federal Offices Away From Downtowns

Donald Trump is turning his focus back towards the federal government’s office holdings.

On Tuesday, the president signed an executive order rolling back directives issued regarding office locations during both Jimmy Carter and Bill Clinton’s presidencies, Bloomberg reported. The latest executive order doesn’t appear to have any immediate effect.

Trump’s order eliminated the prioritization of federal offices in downtown and historic districts. The administration argued that the emphasis failed to deliver on needs such as cost efficiency and effectiveness.

While rescinding directives of former presidents, the order does not impair “the authority granted by law to an executive department or agency, or the head thereof.” In other words, department leaders are still making calls on office locations.

But Trump is clearly laying out the guidelines to remake the federal government’s office portfolio in his image. This past Monday marked a deadline for federal agencies to pitch plans to downsize their workforces and relocate offices out of Washington, D.C. to less costly areas of the country.

Meanwhile, Elon Musk’s Department of Government Efficiency has crusaded against the federal government’s real estate holdings and workforce. As of Monday, DOGE claims to have canceled more than 650 leases, resulting in approximately $350 million in savings, far less than DOGE reported a month ago.

At the start of the year, the federal government had more than 174 million square feet under lease, paying nearly $5.8 billion annually on rent. The General Services Administration has 18.4 million square feet of leases set to expire this year and another 54 million square feet under lease with termination rights.

Last month, the GSA posted an inventory of 443 “non-core” assets within its portfolio that appeared to be available for sale, only for it to be immediately pulled down.

The GSA also launched Space Match, a program designed to help federal agencies find office space available outside of their own properties.

— Holden Walter-Warner