Fed hands HQ renovation to another agency amid scrutiny

The Federal Reserve this week handed over management of renovation of its Washington, D.C., headquarters to the General Services Administration (GSA) in the wake of an Inspector General report showing the project had suffered from managerial shortcomings.

“GSA fully supports Chairman Kevin Warsh’s efforts to bring greater accountability, cost discipline, and effective project management to major renovation work across Federal Reserve facilities,” GSA Administrator Edward C. Forst said in a statement. 

“As the federal government’s primary real estate and building management agency, GSA will work closely with the Chairman and bring its expertise in construction, project management, and federal real estate to get these projects back on track," it added. "Together, we will focus on delivering better value for taxpayers and ensuring the Federal Reserve’s facilities are positioned to better serve the American people.”

The Federal Reserve's renovation has suffered from cost overruns and long delays. The Trump administration at one point investigated the matter and President Donald Trump himself previously suggested that former Chairman Jerome Powell was engaged in wrongdoing.

The Inspector General found no evidence of misconduct in its investigation.

Ben Whedon is the Chief Political Correspondent at Just the News. Follow him on X.