The Biden administration is proposing a new budget plan for fiscal 2025 that would provide the General Services Administration (GSA) with $425 million to optimize the federal office footprint and reduce long-term costs. This initiative, if approved by Congress, would also grant GSA expanded authorities for disposing of excess property.
According to Federal News Network, GSA Administrator Robin Carnahan stated that this budget plan reflects targeted investments that will accelerate efforts to right-size the real estate portfolio. These investments are expected to yield significant returns for taxpayers.
In addition, the proposed budget builds upon GSA’s recent announcement of plans to dispose of 23 properties and potentially reduce over 3.5 million square feet and save more than $1 billion in costs over a span of ten years.
Furthermore, it grants GSA full access to revenues from rent payments collected from agencies using government-owned properties through the Federal Buildings Fund. Currently, Congress diverts $1 billion annually from this fund towards other expenses as reported by Federal News Network.
This post on Connect CRE discusses how funding sought by White House aims at optimizing federal office space usage through cost reduction measures implemented by GSA.
