GAO's Assessment of the Costs of Deferred Maintenance Across the Federal Government

Legislative Branch Budget RequestsHouse Appropriations Subcommittee on Financial Services and General Government · April 9, 2025 · 119th Congress
The House Appropriations Subcommittee on Financial Services and General Government held this hearing to examine a GAO report on the federal government's growing deferred maintenance backlog. Begins at ▶ 0:05:15
Transcript
Highlights

Title

GAO reports federal deferred maintenance backlog surges past $370 billion

Purpose

The House Appropriations Subcommittee on Financial Services and General Government held this hearing to examine a GAO report on the federal government's growing deferred maintenance backlog. GAO witness Dave Marroni testified on the scope of the problem across GSA and other agencies, its causes, and options for consolidating or disposing of underused federal buildings, while several Democratic members used the hearing to press for broader oversight of the Trump administration's DOGE-driven agency cuts. Begins at▶ 0:05:15

Who spoke

• Chairman Mr. Joyce▶ 0:05:15: Opened by noting GAO has kept federal property management on its high-risk list for 22 years▶ 0:06:03, citing 285,000 federal buildings worth $1.2 trillion in replacement value▶ 0:06:31 and GSA's deferred maintenance rising from $2.53B (FY2020) to $6.1B (FY2024)▶ 0:06:31; later questioned Marroni on the definition and stakes of deferred maintenance▶ 0:15:43.

• Rep. Mark Pocan (D-WI), Ranking Member▶ 0:08:48: Argued the hearing topic was less urgent than oversight of DOGE, citing Elon Musk receiving $6 billion in new federal contracts atop $20 billion already held▶ 0:09:45 and HHS having to rehire 20% of mistakenly fired staff▶ 0:10:09; questioned Marroni on who is "running the show" between GSA, agencies, and DOGE on building disposals▶ 0:18:35, and pressed on the new GSA buildings commissioner's stated 50% footprint-reduction goal made after four days on the job▶ 0:19:28.

• Dave Marroni, GAO Director of Physical Infrastructure▶ 0:12:32: Testified the federal deferred maintenance backlog has more than doubled to about $370 billion, with GSA's backlog quadrupling to over $6 billion▶ 0:13:26; identified building age (~50 years average), inflation, and funding constraints as drivers▶ 0:13:55, and recommended risk-based prioritization and disposing of underused, poor-condition buildings▶ 0:14:23.

• Rep. Andy Amodei (R-NV)▶ 0:22:43: Asked whether GAO or GSA has done state-by-state or regional analysis of leased versus owned property to identify consolidation opportunities▶ 0:23:12; Marroni confirmed GSA performs portfolio analysis but data quality varies▶ 0:24:51.

• Rep. Mike Bishop (R-MI)▶ 0:26:11: Questioned whether staffing and budget cuts would make deferred maintenance worse▶ 0:26:11 and pressed Marroni on whether the current administration has articulated a transparent plan or end-state for reducing federal property▶ 0:27:37; had Marroni confirm the prior administration's disposal plan was data-driven, with a notional goal of reducing owned space by up to 30%▶ 0:28:34▶ 0:29:01.

• Rep. Ashley Hinson (R-IA)▶ 0:29:50: Noted GSA's deferred maintenance backlog exceeded $17 billion as of March▶ 0:31:12 and had Marroni walk through the three-tranche federal property disposal process (federal agencies, then states/localities, then public sale)▶ 0:31:39, which he said can take 1 to 5 years and is often "slow and bureaucratic"▶ 0:32:55▶ 0:34:13.

• Rep. Glenn Ivey (D-MD)▶ 0:34:43: Cited 2024 GSA testimony supporting the FBI headquarters relocation to Greenbelt as most cost-advantageous▶ 0:35:32; read from a letter signed by Reps. Hoyer, Pocan, Bishop, Ivey, Kuster, and Camp-Perez requesting oversight hearings on DOJ, Elon Musk, and OMB actions▶ 0:36:51, and raised court rulings on OPM layoffs and impacts on Social Security Administration offices▶ 0:37:57▶ 0:39:18.

• Rep. Mark Alford (R-MO)▶ 0:39:46: Cited the deferred maintenance backlog rising from $208 billion (2020) to $370 billion▶ 0:40:09 and read a list of chronically underused federal buildings from a 2023 Public Building Reform Board report, including the James Forrestal Building at less than 1% occupancy and multiple buildings at 12% occupancy▶ 0:40:37; pressed Marroni on why consolidation is taking so long▶ 0:42:30 and criticized SBA Administrator Guzman for using only 4-6% of the agency's headquarters▶ 0:43:00.

• Rep. Marie Gluesenkamp Perez (D-WA)▶ 0:45:09: Asked how many GAO/GSA staff have trades backgrounds versus college degrees▶ 0:45:35; described environmental review delays contributing to a property seller's death during an SBA loan transaction▶ 0:46:30, and urged consideration of rural post offices as community "third spaces" in disposal decisions▶ 0:48:00.

• Rep. Mike Loud (R-MO), Vice Chair▶ 0:50:24: Clarified Marroni's role reviewing rather than managing federal property▶ 0:50:53; used a home-renovation analogy to ask whether maintaining buildings before disposal yields higher sale prices▶ 0:52:51, and asked whether GAO prioritizes maintenance spending toward buildings intended for disposal▶ 0:53:51.

Key moments

• GAO's federal deferred maintenance backlog has more than doubled to roughly $370 billion, with GSA's own backlog quadrupling to over $6 billion▶ 0:13:26.

• Building condition was newly added to GAO's high-risk list this year due to sharply rising deferred maintenance costs▶ 0:13:26.

• Rep. Alford read a list of major federal buildings sitting at around 12% occupancy or less, including the James Forrestal Building (DOE) at under 1% occupancy, and pressed Marroni on why consolidation isn't happening faster▶ 0:40:37.

• Marroni testified agencies will be required to collect building utilization data starting this summer under a law passed in January (the WRDA/USA Act), with GSA and OMB required to consider disposal for buildings below a 60% utilization threshold after a two-year check-in period▶ 0:43:28.

• Pocan pressed Marroni on GSA's new public buildings commissioner announcing a goal to cut non-defense federal building space by at least 50% after only four days on the job, without supporting utilization data▶ 0:19:28; Marroni said he was not aware of data justifying that figure▶ 0:19:59.

• Bishop got Marroni to confirm the prior administration's property-reduction plan (up to 30% of owned space) was based on systematic portfolio data analysis, contrasting with uncertainty about the current administration's methodology▶ 0:28:34.

• Hinson established that federal property disposal takes 1 to 5 years across a three-step process (federal agencies, then states/localities, then public sale), which Marroni called "slow and bureaucratic"▶ 0:32:55▶ 0:34:13.

• Ivey cited a March 24, 2025 letter from six Democratic members requesting subcommittee oversight hearings on DOJ, Elon Musk/DOGE, and OMB actions, and referenced a federal court ruling on OPM's attempted termination of roughly 16,000 employees▶ 0:36:51▶ 0:37:35.

• Marroni testified GAO has had no direct contact with DOGE despite GSA's lead role in announcing property disposals and lease reductions▶ 0:18:35.

• Marroni said poorly maintained buildings are "penny wise, pound foolish," and that maintaining a building before sale typically yields a higher sale price and lower ongoing operations costs▶ 0:52:21▶ 0:53:20.

Metadata

CommitteeHouse Appropriations Subcommittee on Financial Services and General Government
Chamber / CongressHouse · 119th Congress
DateApril 9, 2025
TypeHearing
Witnesses
Mr. Dave Marroni — Director, Physical Infrastructure, U.S. Government Accountability Office
Videoyoutube
Transcript113 caption blocks · 9,632 words · 0:56:18 runtime
EventCongress.gov 118108