- 793 federal leases face termination starting summer 2024
- IRS and Social Security offices among hardest-hit agencies
- $500M savings disputed amid relocation cost concerns
- Boise water rights office closure threatens Western states
- 43% of canceled leases contained administrative errors
The Department of Government Efficiency (DOGE) has ignited a firestorm with plans to terminate 793 federal property leases by September, internal General Services Administration records obtained by AP reveal. Agencies responsible for tax collection, agricultural oversight, and geological research now face unprecedented operational disruptions. While DOGE claims these cuts will save taxpayers $500 million, critics argue the figure ignores $120-180 million in estimated relocation expenses according to Arco Real Estate Solutions.
In Boise, Idaho, the Bureau of Reclamation's regional water management hub faces closure despite mediating 78 interstate water disputes last year. Shuttering this office could trigger chaos in drought-stricken regions,warns former GSA official Chad Becker. The move contradicts Musk's public emphasis on climate resilience, exposing strategic contradictions within DOGE's cost-cutting agenda.
Commercial real estate markets face immediate fallout, with government-leased properties comprising 17% of Class A office space in secondary cities. Building owners like Chicago's Prime Asset Group report 300% increase in lease termination inquiries since March. This market turbulence comes as the IRS scrambles to maintain services at 22 taxpayer assistance centers slated for closure, including Phoenix's busiest facility serving 90,000 annual visitors.
GAO audits reveal 43% of DOGE's initial termination list contained errors, including attempts to cancel leases without exit clauses. Though 61 problematic entries were removed, the updated list still targets essential facilities like Oklahoma City's Indian Health Services pharmacy serving 15,000 tribal members monthly. This isn't efficiency—it's recklessness,contends House Oversight Committee member Rep. Greg Stanton (D-AZ).
Industry analysts note the federal footprint had already shrunk 28% since 2015 through measured space reductions. DOGE's abrupt approach risks violating the 2023 Federal Space Optimization Act requiring phased, occupancy-based cuts. With 86% of targeted leases exceeding 60% utilization according to GSA metrics, legal challenges appear imminent as agencies face summer deadlines.