The Federal Government Owns 250,000 Buildings. Changes Could Save Hundreds of Millions.
Description
On March 26, 2026, David Marroni, Director of Physical Infrastructure at the U.S. Government Accountability Office, delivered testimony before the Subcommittee on Financial Services and General Government, House Committee on Appropriations, U.S. House of Representatives.
This testimony examines how funding uncertainty affects the federal government's management of real property, including buildings and facilities managed by the General Services Administration (GSA). It focuses on the role of the Federal Buildings Fund and how budget constraints impact capital projects, maintenance, and property disposal.
GAO found that limits on how funding can be used have made it difficult for agencies to secure upfront funding for large capital projects, such as constructing or renovating federal buildings. As a result, agencies often prioritize immediate operational costs, which can increase long-term expenses.
The testimony also highlights a growing backlog of deferred maintenance and repair, which has increased by billions of dollars in recent years. Delaying maintenance can worsen building conditions and lead to higher replacement costs. In addition, funding uncertainty has limited agencies' ability to consolidate space and dispose of underused properties, resulting in missed opportunities to reduce costs.
GAO identified options for Congress and federal agencies to address these challenges, including improving the disposal of underutilized buildings and considering alternative budgetary approaches for funding real property projects. These changes could help agencies make more effective use of resources and reduce long-term costs.
GAO has made multiple recommendations to improve real property management and the use of existing funding. While some actions have been taken, additional efforts are needed to fully address these longstanding challenges.
This testimony examines how funding uncertainty affects the federal government's management of real property, including buildings and facilities managed by the General Services Administration (GSA). It focuses on the role of the Federal Buildings Fund and how budget constraints impact capital projects, maintenance, and property disposal.
GAO found that limits on how funding can be used have made it difficult for agencies to secure upfront funding for large capital projects, such as constructing or renovating federal buildings. As a result, agencies often prioritize immediate operational costs, which can increase long-term expenses.
The testimony also highlights a growing backlog of deferred maintenance and repair, which has increased by billions of dollars in recent years. Delaying maintenance can worsen building conditions and lead to higher replacement costs. In addition, funding uncertainty has limited agencies' ability to consolidate space and dispose of underused properties, resulting in missed opportunities to reduce costs.
GAO identified options for Congress and federal agencies to address these challenges, including improving the disposal of underutilized buildings and considering alternative budgetary approaches for funding real property projects. These changes could help agencies make more effective use of resources and reduce long-term costs.
GAO has made multiple recommendations to improve real property management and the use of existing funding. While some actions have been taken, additional efforts are needed to fully address these longstanding challenges.