Government agencies to cancel hundreds of leases amid budget cuts
- Hundreds of federal office leases are set to be terminated, covering millions of square feet of space.
- GSA and DOGE are spearheading efforts to cut costs amidst divided public opinion.
- The cancellations aim to save taxpayer money, although many officials fear negative consequences on government services.
In the United States, by the end of 2025, numerous federal agencies are set to discontinue their leases, resulting in a reduction of approximately two million square feet of office space. The General Services Administration (GSA), in conjunction with the Department of Government Efficiency (DOGE), aims to cut at least $500 million in leasing costs. This initiative will encompass various agencies, including the Internal Revenue Service, Social Security Administration, and Department of Agriculture, some of which will begin closing as early as June 2025. The terminations are expected to come in waves, with the first sites to shut down in Massachusetts, Idaho, and Iowa. Mixed public responses have arisen regarding these actions, as a recent poll indicates substantial opposition to DOGE's decision-making and its approach to federal workforce management. Many constituents remain concerned that the cuts may hinder government services and agency efficacy. However, DOGE maintains that these lease terminations will ultimately benefit taxpayers by saving on unnecessary property expenses. Nonetheless, the subsequent backlash from certain lawmakers and federal officials has resulted in the reversal of over 100 lease terminations, highlighting the contentious nature of the administration's real estate decisions.