A dispute arose during a recent House Oversight Committee hearing regarding the Trump administration’s strategy for reducing federal real estate holdings, with Democrats accusing the administration of hastily selling off government properties.
The effort, undertaken by the Department of Government Efficiency (DOGE) in collaboration with the General Services Administration (GSA), aims to streamline the federal portfolio and eliminate unnecessary expenditures. Republicans argue that this “rightsizing” initiative is crucial for reducing wasteful spending.
Representative Melanie Stansbury (D-N.M.), ranking Democrat on the DOGE subcommittee, voiced strong concerns about the approach taken by the previous administration.
“The Trump administration appears to be engaging in a rapid divestment of federal assets, effectively stripping them for parts to finance tax cuts,” she stated.
According to Representative Marjorie Taylor Greene (R-Ga.), chair of the subcommittee, the GSA’s cost-cutting measures have already yielded significant results.
- Nearly 700 lease terminations
- Elimination of 7.9 million square feet of federal office space
- Taxpayer savings of approximately $400 million
Experts further highlighted the potential for substantial savings. John Hart, CEO of Open the Books, testified that an estimated $1 billion could be saved annually by foregoing furniture lease renewals due in 2027.
David Marroni, director of physical infrastructure at the U.S. Government Accountability Office, underscored that many government agencies have historically demonstrated inefficient use of their existing facilities. “There’s a significant opportunity for savings through workspace reduction,” he said.
“It’s about $8 billion a year on owned and leased office space, so any reduction is going to generate a lot of money.”
Democrats also directed criticism toward Elon Musk, whose involvement in the DOGE initiative has become a point of contention. Representative Stansbury suggested that DOGE may be serving as a vehicle for private interests.
“There are concerns about potential conflicts of interest given Mr. Musk’s recent acquisition of substantial new federal contracts across agencies including the Department of Defense and NASA, along with proposals to install SpaceX’s Starlink Wi-Fi throughout federal buildings.”
Stansbury further alleged that Musk is seeking to deploy his artificial intelligence technology within federal agencies and potentially replace existing employees. Starlink, a subsidiary of SpaceX, reportedly has already been implemented at the White House.
DOGE currently claims to have saved Americans $140 billion – approximately $870 per taxpayer – as of Tuesday’s hearing.
