The Trump administration has instructed all federal agencies to submit plans by April 14 detailing how they will relocate offices outside Washington, D.C. in an effort to reduce costs and decentralize government operations.
Key Takeaways:
- Federal agencies must propose office relocations to “less-costly” parts of the country.
- Agencies have seven days to provide a full inventory of real property they control.
- Government-owned buildings deemed unnecessary must be sold off within 60 days.
- D.C.’s commercial real estate market could take a major financial hit.
- No details provided on the costs of relocation or the long-term impact on efficiency.
This move is part of the administration’s broader effort, led by Elon Musk’s Department of Government Efficiency (DOGE), to shrink the federal workforce, cut contracts, and reduce government spending.
Federal Agencies Ordered to Submit Relocation Plans by April 14
In a Wednesday directive, the Office of Management and Budget (OMB) and the Office of Personnel Management (OPM) ordered agency heads to submit proposals to relocate offices from Washington, D.C. to lower-cost areas.
Trump’s Argument for Relocation:
“You go around Washington and see all these buildings with the Department of Education. We want to move education back to the states, where it belongs.”
New Executive Order Requirements:
- Agencies must inventory all government real estate within 7 days.
- Agencies must identify lease termination options within 30 days.
- The General Services Administration (GSA) has 60 days to submit a plan to sell off unnecessary government-owned properties.
Trump has repeatedly argued that decentralizing federal offices will increase efficiency, reduce waste, and cut costs.
The Real Cost of Relocating Federal Agencies
Major concerns include:
- Massive moving expenses – Selling D.C. real estate and leasing or buying new properties elsewhere could be costly.
- Operational inefficiencies – Federal employees and agencies could face logistical challenges in coordinating across multiple locations.
- Economic impact on D.C. – Losing federal offices could devastate D.C.’s real estate market and local economy.
Diana Parks, Chair of the National Federal Development Association, warned:
“For all of it to hit the market in a short time, it’s just a supply-and-demand issue that’ll drive down the value of that real estate considerably.”
Critics argue that while the plan is meant to cut costs, the upfront expenses and long-term inefficiencies may outweigh any potential savings.
The First Phase of the Plan: Workforce and Budget Cuts
This relocation order is Phase 2 of a broader plan to overhaul the federal government.
Phase 1 (March 13 deadline):
Agency heads must submit reorganization plans detailing job cuts, contract reductions, and spending reductions.
Phase 2 (April 14 deadline):
Agencies must propose office relocations to lower-cost regions.
These steps are part of Musk’s DOGE-led initiative to “eliminate waste, bloat, and insularity” in the federal government.
