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

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

A recent Government Accountability Office (GAO) study published last October found 17 of 24 surveyed federal agencies, on average, used an estimated 25 percent or less of the capacity of their headquarters buildings. In 2023 alone, federal agencies reported over 5,000 buildings as either underutilized or unutilized altogether. This longstanding problem has been worsened by agencies’ embrace of remote, telework policies.

In his opening statement, Cramer explained, while these recent numbers are shocking, this is not a new problem. “In 2003, the GAO placed the management of federal buildings on its High-Risk List due to the high financial cost of underutilized space and the complex, seemingly unworkable process of actually disposing of these properties. Put more simply, like most things, the federal footprint is too big and it’s nearly impossible to shrink it. […] The current practice of spending billions of taxpayer dollars each year to operate federal buildings, regardless of their utilization, must come to an end. I remain committed to working in a bipartisan way on this committee to find solutions, because this problem cannot go on unaddressed.  I understand more than 50% of GSA’s managed leases are set to expire by 2027, and I encourage the agency to take full advantage of this opportunity to right-size the federal real estate portfolio. In fact, I think it would be derelict not to.”

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

Referencing the GAO utilization report, Cramer asked Commissioner Doomes to explain his agency’s actions to ensure better usage of federal buildings.

“To me, at least, and arguably the most concerning finding of this report was the revelation that a majority of federal agencies were using 25 percent or less of their headquarters building space,” stated Cramer. “But equally concerning to me was that the highest average of utilization was still less than 50 percent, and that paints a pretty troubling picture of mismanagement. […] Following the release of the report, can you give me some GSA actions that you’ve taken within this capacity to ensure better usage of federal office space, where possible and then, trying to find ways to eliminate the waste of taxpayer dollars, and where it’s not possible, what actions or what suggestions would you have going forward?”

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

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

“The Public Buildings Reform Board concluded that billions of dollars are being spent on buildings that should be disposed of, given the new normal of low occupancy,” asked Cramer. “But we do have an opportunity. I mentioned in my opening statement, over 50 percent of the leases are going to expire in 2027. So, presuming it’s a high number coming due, you’re on a trajectory for more consolidation, and disposal sounds like a good idea. But I have a rather basic market question: Is there a market? […] What can you tell me about the market for buildings that might be able to be disposed of if there was just a buyer?”

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

Congress passed the Federal Assets Sale and Transfer Act (FASTA) in 2016. To save taxpayer money, it aimed to streamline the disposal of unneeded federal buildings, land, and structures. After completing the first two rounds of disposals, the Public Buildings Reform Board (PBRB) identified numerous challenges impacting FASTA's overall effectiveness. In October, Ranking Member Cramer and EPW T&I Chairman Mark Kelly (D-AZ) introduced the FASTA Reform Act to address existing issues with FASTA and help facilitate a successful final round. Their bill passed out of the EPW Committee in May.