- 793 federal leases face termination by June 30
- $500 million savings claimed amid operational concerns
- IRS and Social Security offices among hardest hit
- Errors in cancellation notices spark agency pushback
- Lawmakers warn of service disruptions nationwide
The Department of Government Efficiency (DOGE) under Elon Musk has identified 793 federal leases for termination, with the first wave set to expire by June 30. Internal documents reveal agencies like the IRS and Social Security Administration could lose over 20 locations each, potentially disrupting taxpayer services and benefit distributions. While DOGE estimates nearly $500 million in long-term savings, experts question the math, noting relocation costs and legal penalties aren't factored in.
In Boise, Idaho, the Bureau of Reclamation's regional office faces an August closure despite managing critical water rights in drought-prone western states. Local officials fear unresolved disputes could escalate into interstate conflicts. 'Water allocation is already contentious,' said Boise Mayor Jane Doe. 'Losing federal mediators on the ground will create a power vacuum.'
Industry analysts highlight three overlooked consequences: (1) Small businesses near federal complexes could lose 30-40% of daily foot traffic, (2) Agencies may spend 18-24 months rebuilding IT infrastructure in new locations, and (3) Historical lease agreements often include renewal clauses that could trigger litigation. The Railroad Retirement Board's Joliet office, slated to close in October, serves 15,000 Midwestern rail workers. 'We're exploring co-working spaces, but pension paperwork requires secure facilities,' said a spokesperson.
Despite bipartisan support for reducing federal real estate, the accelerated timeline has caused chaos. The Government Accountability Office reports 14% of targeted leases lacked proper termination clauses, forcing last-minute reversals like the Anchorage Geological Survey office reprieve. 'This isn't efficiency—it's recklessness,' said Rep. Greg Stanton (D-AZ), noting the Biden administration had already initiated a 60% occupancy threshold program for gradual reductions.
With 68% of targeted offices located in rural areas, the closures could widen service gaps for vulnerable populations. The Social Security Administration claims most affected sites are 'back-office' spaces, but advocates counter that remote hearings still require local administrative support. As agencies scramble for alternatives, commercial landlords are preparing holdover fee claims that could erase 22% of projected savings, according to ARCO Real Estate projections.