US Fed, GSA Pauses Federal Property Sales Amid Backlash, Lawmaker Criticism

Rep. Rick Larsen (D-Wash.) criticized the General Services Administration’s (GSA) plan to sell hundreds of federal properties, though a U.S. News article mistakenly attributed his comments to Rep. John Larson (D-Conn.). The GSA initially listed about 440 federal buildings, totaling nearly 80 million square feet, for sale as part of the Trump administration’s efforts to reduce government size and spending. However, following backlash from workers, officials, and others, the GSA paused the sales and removed the listings from its website.

The properties included aging buildings and high-profile sites like the FBI headquarters and offices for the Departments of Health and Human Services and Labor. The GSA later reduced the list to 330 properties before removing it entirely, stating it would republish after further evaluation. This pause marked a rare setback for the administration’s efficiency efforts, led by the Department of Government Efficiency (DOGE), which has been cutting costs through buyouts and layoffs.

At a House Transportation Committee hearing, Rep. John Larson (D-Conn.) questioned the rushed sales process, while Rep. Rob Bresnahan (R-Pa.) expressed surprise about cuts affecting his district. The sales, when resumed, could impact office markets already struggling with high vacancy rates and declining values due to remote work trends.

The Trump administration aimed to accelerate property sales and lease terminations, targeting over 740 leases for cutbacks. Commercial real estate investors are already eyeing federal buildings and privately owned spaces where leases may be canceled, particularly in Washington, D.C., which faces high office vacancies and low return-to-office rates.