President Trump’s new executive order allows federal agencies to abandon costly downtown offices for more economical locations, saving taxpayers billions while bringing government services closer to the communities they serve.
At a Glance
- Trump’s executive order rescinds Carter and Clinton era mandates that required federal agencies to lease office space in expensive downtown areas
- The order aims to reduce government waste by allowing agencies to select locations based on cost-effectiveness and mission requirements
- Federal agencies can now move closer to the communities they serve, improving service delivery
- The Department of Government Efficiency (DOGE) has already canceled numerous costly federal leases, working toward $155 billion in savings by 2026
Overturning Decades of Wasteful Spending
On April 15, President Donald Trump signed an executive order that fundamentally changes how the federal government approaches office space leasing and acquisition. The order revokes previous directives issued by Presidents Jimmy Carter and Bill Clinton that had required federal agencies to establish their offices in central business districts and historic properties.
These outdated policies had effectively forced agencies into some of the most expensive real estate markets, regardless of whether such locations were necessary for fulfilling their missions or financially prudent for American taxpayers.
Carter’s 1978 order was initially intended to revitalize urban business districts, while Clinton’s 1996 directive encouraged agencies to occupy historic buildings. While perhaps well-intentioned, these policies created a costly mandate that prevented federal agencies from pursuing more economical alternatives, even as government spending and national debt continued to climb.
The General Services Administration (GSA), which manages over 363 million square feet of space across more than 8,397 buildings nationwide, currently faces deferred maintenance liabilities exceeding $17 billion.
— Zerocool2020 (@B_ZEROCOOL) April 6, 2025
Community-Focused Approach to Government
Under the new executive order, federal agencies will have the flexibility to select locations that not only reduce costs but also better serve the American public. Rather than clustering government offices in expensive downtown areas far removed from the citizens they serve, agencies can now position themselves closer to the communities where their services are needed most. This shift represents a fundamental change in philosophy, prioritizing practical effectiveness and accessibility over the old Washington model of centralized bureaucracy.
The Department of the Treasury has already demonstrated the benefits of this approach by improving IRS service centers, reducing wait times, expanding in-person assistance, and digitalizing tax processes. Similarly, the Department of Veterans Affairs has integrated digital services across its platforms to better serve veterans wherever they live, while the Small Business Administration has implemented customer feedback surveys and launched a streamlined disaster assistance application system to better respond to community needs.
— Ronald Reagan Institute (RRI) (@ReaganInstitute) June 10, 2024
Delivering Substantial Taxpayer Savings
A key component of the executive order is its focus on fiscal responsibility. The Department of Government Efficiency (DOGE) has already been working to cancel unnecessary and expensive federal leases, with the ambitious goal of saving $155 billion by fiscal year 2026. This initiative represents one of the most significant efforts to reduce wasteful government spending in recent memory, addressing the fundamental issue of how and where the federal government operates.
The GSA has been directed to update its regulations to align with the new policy, requiring all federal agencies to comply with these cost-saving measures when acquiring or using federally owned or leased space. By freeing agencies from restrictive location requirements, the government can negotiate more favorable leasing terms, reduce overhead costs, and ultimately deliver more value to American taxpayers without compromising service quality.
Modernizing Government Service Delivery
Beyond the cost savings, Trump’s executive order represents a broader effort to modernize how government services are delivered. Several federal agencies have already made significant strides in this direction, with the Department of State developing an online passport renewal system that processed 24 million passports in 2023, and the Department of Labor expanding digital submission for workers’ compensation claims. The Department of Homeland Security has launched a streamlined online disaster assistance application, while the Social Security Administration has updated service processes and introduced electronic form submission.
By allowing these agencies to relocate to more strategic and cost-effective locations, the executive order enhances their ability to fulfill their missions while adapting to the changing needs of the American public. This approach recognizes that modern government service delivery doesn’t necessarily require expensive downtown real estate, particularly as digital services continue to expand and remote work becomes more mainstream throughout the federal workforce.
