Emily Murphy, former head of the General Services Administration (GSA) who served throughout President Donald Trump’s first term, shared with Fox News Digital that the GSA plans to “rightsize its portfolio” by selling or leasing government buildings that are underutilized, aiming to save taxpayer money and make government operations more efficient.
Murphy explained that there is a significant opportunity for the GSA to cut costs by “right-sizing its portfolio” and collaborating with Elon Musk’s Department of Government Efficiency (DOGE) to identify “vacant or underused federal spaces.” This initiative is part of a broader effort by the Trump administration to reduce wasteful spending.
“Right now, the GSA is losing money,” Murphy remarked. “The federal buildings they own have over $370 billion in deferred maintenance. This liability continues to grow because these properties aren’t being maintained. By eliminating unused space, it removes that financial burden from the government’s books and also creates opportunities for communities. Vacant buildings aren’t beneficial for the cities or states they are located in.”
Murphy noted that many of these empty buildings are in prime downtown areas, which could be valuable assets for revitalizing local communities and generating revenue. “The GSA needs to adjust its lease portfolio or it will keep paying rent for spaces it isn’t using, and it doesn’t have the budget for that,” she added.
The GSA’s efforts to cut costs have already led to the termination of 794 leases, canceling over $500 million in lease obligations, a source familiar with GSA’s actions told Fox News Digital. Murphy believes that terminating leases and selling unused properties will benefit the government in two ways: short-term funding for agencies and the reduction of long-term financial commitments.
“No taxpayer should want the government paying for space it doesn’t use,” Murphy said. “It’s billions of dollars in rent and real estate costs every year. This is a significant opportunity for the GSA to save money and reduce long-term obligations while freeing up funds for other government needs.”
Murphy, who led the GSA during her tenure, highlighted that the agency’s mission is to “cut down on waste,” and under her leadership, the GSA managed to return about $21.6 billion in savings. She supports DOGE’s ongoing efforts to eliminate waste and improve efficiency, stating that this issue should have bipartisan support.
“Efficiency and waste reduction in government should be a bipartisan priority,” she noted. “Government real estate and contracting shouldn’t have a political divide. DOGE is working to ensure that taxpayers can trust that their money is being spent wisely.”
Murphy explained that the GSA, created 75 years ago, manages the federal government’s property portfolio and procurement needs. “It was designed to streamline government operations so agencies wouldn’t duplicate tasks,” she said.
On Inauguration Day, Stephen Ehikian took office as acting administrator and deputy administrator of the GSA, promising to return the agency to its core mission. “Under the Trump-Vance administration, I will focus on making government operations smarter and faster,” Ehikian said, emphasizing the need for efficiency and lower costs.
According to DOGE’s official website, the GSA has already achieved the most savings across federal agencies. The GSA is currently working to identify and dispose of buildings that are not essential to government functions. A webpage on the GSA’s site notes, “We are identifying non-core properties for disposal, which helps eliminate expensive maintenance costs and allows us to reinvest in spaces that better support agency missions.”
The Associated Press reported that dozens of federal leases will be terminated by June 20, with more expected in the following months. The GSA has also published a list of federal properties it plans to sell, which was later revised to include around 320 buildings. The webpage has since been updated with a “coming soon” notice.
Musk, who has expressed concerns about unused office spaces, has shared his views on the issue both on his personal social media and through DOGE’s official account.
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