GSA and USDA Announce Ag South Building Disposition
Summary
The GSA and USDA announced the planned disposition of the Ag South building in Washington, DC, which is over 85% vacant. This action is expected to save taxpayers $1.6 billion by avoiding delinquent maintenance costs and rightsizing USDA's federal real estate footprint.
What changed
The General Services Administration (GSA) and the U.S. Department of Agriculture (USDA) have announced the planned disposition of the Agriculture South (Ag South) building in Washington, DC. The building is currently over 85% vacant, representing a significant liability for taxpayers due to $1.6 billion in delinquent maintenance. This disposition aligns with the administration's goals to reduce the federal real estate portfolio and consolidate agency footprints, aiming to increase USDA's space utilization from 15% to 80% in a proposed new location.
This announcement is primarily informational and does not impose new direct compliance obligations on regulated entities outside of government agencies. However, it signals a broader trend in federal real estate management and potential future consolidations or relocations that could impact government contractors or entities interacting with these agencies. The disposition is framed as a cost-saving measure and an effort to improve the efficiency of federal operations.
Source document (simplified)
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February 25, 2026
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GSA and USDA Unlock $1.6 Billion in Savings for Americans with Ag South Disposition
WASHINGTON — Today, the U.S. Department of Agriculture (USDA) and the U.S. General Services Administration (GSA) announced the planned disposition of the Agriculture South (Ag South) building in Washington, DC. The Ag South disposition will deliver significant value to taxpayers while advancing the Trump Administration’s objectives to reinvigorate, consolidate, and better utilize the federal real estate portfolio.
“GSA is enthusiastically committed to executing President Trump’s vision of reducing the bloated federal real estate portfolio and turning the fiscal drain of empty space into economic opportunity,” said GSA Administrator Edward C. Forst. “I applaud Secretary Rollins, Deputy Secretary Vaden, and Senator Ernst **** for their efforts to save taxpayer money and make our federal workspaces great again.”
Currently, taxpayers are carrying a billion-dollar liability for a building that is more than 85 percent vacant. Disposition eliminates risk and avoids $1.6 billion in delinquent maintenance, while achieving President Trump’s goal of rightsizing USDA’s footprint. As a result, USDA’s average utilization will dramatically increase from its current average of 15 percent to 80 percent in their proposed location.
Through a deliberate planning process, USDA developed a comprehensive strategy to better align its workforce with contemporary space to meet their operational needs. USDA’s plan to dispose of unnecessary and excessive space aligns with the Administration’s goal to hone the federal real estate portfolio.
“This is a long overdue move to protect American taxpayer dollars from being wasted on expensive real estate inside the Washington, D.C. area when our government should be closer to the farmers and ranchers we serve,” said Secretary Brooke Rollins. **** “More than 85 percent of the South Building is unoccupied and there is a $1.6 billion backlog in delinquent maintenance. It is simply unacceptable to put these costs on the taxpayer. We are being strong stewards of taxpayer dollars while also ensuring top notch customer service and fulfilling our promises to American farmers.”
“President Trump made clear his second term would include relocating the sprawling federal bureaucracy to locations outside the National Capital Region,” said Deputy Secretary Stephen Alexander Vaden. **** “The prior administration not only burdened the taxpayer through questionable policymaking but also by maintaining a massive, underutilized real estate footprint that USDA’s budget could not sustain. Today’s announcement cements the beginning of USDA’s larger reorganization, ensuring this Department delivers on its mission to the American people within the bounds of its financial resources.”
This is an opportunity to catalyze economic development in Southwest DC and an important first step as we work to prioritize American tax dollars.
About GSA: GSA provides centralized procurement and shared services for the federal government. GSA manages a nationwide real estate portfolio of approximately 360 million rentable square feet, oversees more than $116 billion in products and services via federal contracts, and delivers technology services to millions of people across dozens of federal agencies. GSA’s mission is to deliver exceptional customer experience and value in real estate, acquisition, and technology services to the government and the American people. For more information, visit GSA.gov and follow us at @USGSA.
Contact
press@gsa.gov
Last updated: Feb 25, 2026
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