The Government Accountability Office’s Assessment of the Federal Buildings Fund

Legislative Branch Budget RequestsHouse Appropriations Subcommittee on Financial Services and General Government · March 26, 2026 · 119th Congress
The House Appropriations Subcommittee on Financial Services and General Government held this hearing to examine the General Services Administration's management of the Federal Buildings Fund (FBF), which supports maintenance and operations for over 360 million square feet of federal real property. Begins at ▶ 0:08:49
Transcript
Highlights

Title

GAO reviews GSA's Federal Buildings Fund and deferred maintenance crisis

Purpose

The House Appropriations Subcommittee on Financial Services and General Government held this hearing to examine the General Services Administration's management of the Federal Buildings Fund (FBF), which supports maintenance and operations for over 360 million square feet of federal real property. GAO witness David Marroni testified on the fund's persistent roughly $1 billion annual funding gap, a deferred maintenance backlog estimated between $6 billion and $50 billion, and options for disposing of underused properties. Members also raised concerns about the proposed FBI headquarters relocation to the Reagan Building, historic preservation of art in federal buildings slated for sale, and the HUD headquarters relocation to Virginia. Begins at▶ 0:08:49

Who spoke

• Chairman Joyce▶ 0:08:49: Opened the hearing, noting GSA manages more than 360 million square feet of space across 2,200 communities▶ 0:08:49, and that real property management has been on GAO's high-risk list since 2003 amid a $50 billion deferred-maintenance liability▶ 0:09:38; later questioned Marroni on why GSA can't get a handle on the problem▶ 0:19:03 and on lease-to-own arrangements like the DOT headquarters▶ 0:56:06.

• Rep. Steny Hoyer (D-MD), Ranking Member▶ 0:10:38: Cited an Inspector General report finding GSA is not consistently addressing deficient security fixtures at its facilities▶ 0:11:53, criticized the plan to move FBI headquarters to the Reagan Building as inadequate for security needs▶ 0:12:20, and referenced former FBI Director Robert Mueller's 2009 request for a secure consolidated FBI campus▶ 0:13:04; later pressed on the share of federal space outside DC▶ 1:02:37 and on telework productivity data▶ 1:15:07.

• David Marroni, GAO Director of Physical Infrastructure▶ 0:15:52: Testified the FBF has run roughly a $1 billion annual gap between rent collected and Congress-authorized spending for 15 years▶ 0:16:42, said deferred maintenance estimates range from GAO's $6 billion figure to the administrator's $26 billion to the Public Buildings Reform Board's $50 billion▶ 0:19:53, and noted government-wide deferred maintenance liability (including DOD) more than doubled since 2017 to about $370 billion▶ 0:22:16.

• Rep. Ashley Hinson (R-IA)▶ 0:28:08: Asked how funding constraints prevent GSA from terminating underused leases, noting relocation and restoration costs as barriers▶ 0:28:36, and pressed on whether GSA is actually running cost-benefit analyses before terminating leases▶ 0:30:20.

• Rep. Mark Pocan (D-WI)▶ 0:31:45: Raised concerns about the William J. Cohen Federal Building, called the "Sistine Chapel of New Deal art," being marked for accelerated disposal and possible demolition▶ 0:32:12, asked about DOGE placing GSA fine-art and historic preservation staff on leave▶ 0:33:39, and questioned costs tied to the White House ballroom and the HUD headquarters relocation to Virginia▶ 0:34:39▶ 0:35:06.

• Rep. Chuck Edwards (R-NC)▶ 0:35:59: Asked about GSA's prioritized list of core assets for disposal▶ 0:36:28 and noted he authored the USE IT Act, asking when its required utilization data reports are due (March 31)▶ 0:37:44; asked whether there is a strategy to relocate agencies outside the DC area▶ 0:39:03.

• Rep. Glenn Ivey (D-MD)▶ 0:40:51: Asked about strategies for the $8.3 billion courthouse repair backlog and the worst-condition courthouses▶ 0:41:20, and about whether the Competition in Contracting Act applies to DHS detention-facility construction like "Alligator Alcatraz"▶ 0:44:36; later asked about remote work's effect on federal office-space needs▶ 1:09:54.

• Rep. Mark Alford (R-MO)▶ 0:45:50: Criticized fragmentation across more than 100 separate federal real-property data systems▶ 0:46:19 and asked what progress GAO has seen in the past year, including USE IT Act implementation and recent property disposals▶ 0:47:32; also asked about the sale status of a USDA building in DC▶ 0:49:50.

• Rep. Sanford Bishop (D-GA)▶ 0:50:49: Questioned the decision to sell USDA's South Building given its location near the National Mall and potential future space needs▶ 0:50:49, and asked how GSA will address the broader deferred-maintenance backlog in the near term▶ 0:53:36.

• Rep. Ashley Hinson (R-IA)▶ 1:07:03: Followed up on security considerations for public-private space-sharing partnerships▶ 1:07:29 and asked why GSA hasn't more aggressively pursued alternative financing mechanisms▶ 1:08:54.

Key moments

• Marroni testified the FBF has faced a roughly $1 billion annual gap between rent collected and appropriated spending for the past 15 years▶ 0:16:42.

• Deferred-maintenance cost estimates varied widely among sources: GAO's own figure of about $6 billion, the GSA administrator's recent testimony of $26 billion, and the Public Buildings Reform Board's $50 billion▶ 0:19:53.

• Hoyer read from a redacted Inspector General report stating GSA "is not consistently addressing deficient security fixtures at GSA controlled facilities"▶ 0:11:53, and argued the proposed FBI move to the Reagan Building — designed for "access and permeability" as a trade center, not a secure law-enforcement facility — would cost at least $1.5 billion to retrofit▶ 0:14:08▶ 0:14:36.

• GAO's 2023 review found headquarters buildings for 24 CFO Act agencies occupy over 20 million square feet in the DC area, while GSA alone controls more than 360 million square feet overall▶ 1:02:37.

• GSA is spending roughly $250 million per year just to maintain (not improve) the FBI's J. Edgar Hoover headquarters building, according to Hoyer▶ 1:21:17.

• Pocan raised concern that DOGE placed most of GSA's fine art and historic preservation staff on administrative leave last April, jeopardizing tracking of integrated artwork like that in the William J. Cohen Building slated for disposal▶ 0:33:39.

• Marroni said GAO has just begun work, at Senate Appropriations' request, examining the legality and process behind relocating HUD headquarters to Virginia▶ 0:35:29.

• Under the USE IT Act, GSA and OMB are required to report federal building utilization data nationwide by March 31, and after two years must act on any space under 60% utilized▶ 0:37:13▶ 1:17:28.

• Marroni recommended Congress reconsider GSA's $4 million prospectus threshold, which subjects even routine repair projects (e.g., elevator replacements) to lengthy review, adding time and cost▶ 1:17:51.

• Hoyer noted the USE IT Act was signed by President Biden as part of the Water Resources Development Act and passed with near-unanimous support▶ 1:04:38.

Metadata

CommitteeHouse Appropriations Subcommittee on Financial Services and General Government
Chamber / CongressHouse · 119th Congress
DateMarch 26, 2026
TypeHearing
Witnesses
Mr. David Morroni — Director, Physical Infrastructure, U.S. Government Accountability Office
Mr. David Marroni — Director, Physical Infrastructure, U.S. Government Accountability Office
Videoyoutube
Transcript165 caption blocks · 13,799 words · 1:22:27 runtime
EventCongress.gov 119084