House BillHR 6675Government Operations and Politics
DISPOSAL Act
INTRO DEC 11· LAST ACTION FEB 2
READING
8MIN
COSPONSORS
12
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
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This bill aims to tackle the issue of federal government inefficiency in managing its vast property portfolio. Many federal buildings, especially older ones, are costly to maintain and may not be fully utilized. By mandating the sale or lease of specific high-value properties and creating a pathway to dispose of other underused assets, the bill intends to reduce the financial burden on taxpayers associated with property upkeep and generate substantial revenue for the U.S. Treasury.
If this bill becomes law, it could lead to significant redevelopment and repurposing of iconic federal buildings in Washington D.C., transforming parts of the city. While it promises a more cost-effective federal real estate strategy, it also raises concerns among some about the waiver of environmental and historic preservation reviews, as well as the removal of judicial oversight for GSA's decisions. If the bill does not pass, these buildings would likely remain under federal ownership, continuing to incur operational costs and potentially hindering opportunities for urban revitalization or deficit reduction.
KEY PROVISIONS
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PROVISION 01
The General Services Administration (GSA) is required to dispose of six specific federal buildings in Washington D.C., including the Frances Perkins and James V. Forrestal Buildings.
This directly reduces the federal government's physical footprint in prime D.C. real estate, potentially yielding significant revenue and changing the urban landscape.
PROVISION 02
Disposals under this bill are exempt from certain federal laws, including the McKinney-Vento Homeless Assistance Act, the National Environmental Policy Act, and the National Historic Preservation Act.
This allows for quicker sales without typical social, environmental, and historical reviews, but removes protections often applied to federal property decisions.
PROVISION 03
The GSA Administrator can add up to 20 additional federal buildings to the disposal list per modification if they have been less than 60% occupied for at least a year.
This expands the scope beyond the initial six buildings, allowing for broader federal property portfolio optimization and cost savings.
PROVISION 04
No federal building disposed of under this Act can be sold or ground leased to foreign persons, foreign entities, or entities with foreign beneficial owners.
This ensures that strategically important or symbolic federal properties remain under domestic ownership or control.
PROVISION 05
Net proceeds from disposals first cover implementation costs (including agency relocation) and then go to the U.S. Treasury to reduce the deficit; GSA's actions under this bill are not subject to judicial review.
This directs funds towards specific government priorities and removes a layer of external oversight for GSA decisions related to these disposals.
This bill aims to tackle the issue of federal government inefficiency in managing its vast property portfolio. Many federal buildings, especially older ones, are costly to maintain and may not be fully utilized. By mandating the sale or lease of specific high-value properties and creating a pathway to dispose of other underused assets, the bill intends to reduce the financial burden on taxpayers associated with property upkeep and generate substantial revenue for the U.S. Treasury.
If this bill becomes law, it could lead to significant redevelopment and repurposing of iconic federal buildings in Washington D.C., transforming parts of the city. While it promises a more cost-effective federal real estate strategy, it also raises concerns among some about the waiver of environmental and historic preservation reviews, as well as the removal of judicial oversight for GSA's decisions. If the bill does not pass, these buildings would likely remain under federal ownership, continuing to incur operational costs and potentially hindering opportunities for urban revitalization or deficit reduction.
KEY PROVISIONS
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high
The General Services Administration (GSA) is required to dispose of six specific federal buildings in Washington D.C., including the Frances Perkins and James V. Forrestal Buildings.
This directly reduces the federal government's physical footprint in prime D.C. real estate, potentially yielding significant revenue and changing the urban landscape.
high
Disposals under this bill are exempt from certain federal laws, including the McKinney-Vento Homeless Assistance Act, the National Environmental Policy Act, and the National Historic Preservation Act.
This allows for quicker sales without typical social, environmental, and historical reviews, but removes protections often applied to federal property decisions.
med
The GSA Administrator can add up to 20 additional federal buildings to the disposal list per modification if they have been less than 60% occupied for at least a year.
This expands the scope beyond the initial six buildings, allowing for broader federal property portfolio optimization and cost savings.
med
No federal building disposed of under this Act can be sold or ground leased to foreign persons, foreign entities, or entities with foreign beneficial owners.
This ensures that strategically important or symbolic federal properties remain under domestic ownership or control.
high
Net proceeds from disposals first cover implementation costs (including agency relocation) and then go to the U.S. Treasury to reduce the deficit; GSA's actions under this bill are not subject to judicial review.
This directs funds towards specific government priorities and removes a layer of external oversight for GSA decisions related to these disposals.
Not later than 30 days before the date on which the Administrator publicly announces the relocation
Administrator must provide notice to Congress 30 days before announcing relocation of a Federal agency to a location outside of D.C.
On providing 30 days advance notice
Administrator must provide notice to Congress 30 days before including additional Federal buildings to the disposal list.
not more than 5 years
Leaseback of a Federal building is limited to a period of not more than 5 years.
GLOSSARY
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Administrator of General Services (GSA)
The head of the U.S. government agency that manages federal property and provides supplies and services to other agencies. Think of them as the government's landlord and procurement manager.
Dispose of
To sell, lease, or otherwise transfer ownership or control of a property.
Ground Lease
A long-term rental agreement for a piece of land, where the renter typically constructs and owns the building on that land. This bill specifies a term of up to 99 years.
Fair Market Value
The price an asset would sell for on the open market when both a buyer and seller are willing, have reasonable knowledge of the asset, and are not under pressure to buy or sell.
Beneficial Owner
The real person or entity who ultimately owns or controls a company or property, even if it's legally held by someone else (like a corporation or trust).
Federal Buildings Fund
A self-sustaining fund managed by the GSA that collects rent from federal agencies occupying GSA-managed space and uses that money for building operations, maintenance, and construction.
Build-to-suit Lease
ACTION TIMELINE
3 EVENTS
FEB 2
Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
COMMITTEE
DEC 11, 25
Introduced in House
INTROREFERRAL
DEC 11, 25
Referred to the House Committee on Transportation and Infrastructure.
A type of lease agreement where a developer designs and constructs a new building specifically tailored to the unique needs and specifications of a tenant (in this case, a federal agency).
Judicial Review
The process by which courts examine the actions of the legislative and executive branches to determine if they are constitutional or within legal bounds.