$800K and Parties and Empty Office Buildings: Can GSA Cuts Help Balance the Budget?

Washington, D.C. – With the national debt continuing to surge past $34 trillion, policy experts are hunting for realistic ways to trim federal spending. One target? The General Services Administration (GSA), a little-known but powerful agency responsible for managing government buildings, contracts, and services. 

While the GSA’s $61 billion annual budget may seem modest compared to giants like the Department of Defense at $852 billion, it still presents opportunities for savings, particularly when you look at its past missteps. 

One infamous example: an $800,000 Las Vegas conference that raised eyebrows in Congress and beyond. “It included such fun things as $30,000 for a pool party, hiring a mind reader for entertainment, and putting an employee up in a 2,400-square-foot suite,” said Jeremiah Mosteller, Policy Director for Americans for Prosperity. “That is five times the size of the place that I live every single day.” 

The spending scandal led to intense scrutiny from lawmakers, many of whom questioned why an agency that owns or leases more than 360 million square feet of office space couldn’t find a more responsible way to hold a meeting. 

But the waste hasn’t stopped with poolside conferences. 

The GSA has also struggled with long-term real estate projects, particularly the redevelopment of St. Elizabeths Hospital in D.C. into the new Department of Homeland Security headquarters. Announced in 2007, the project has already cost taxpayers $3 billion, with no clear timeline or final cost estimate. “The Government Accountability Office has repeatedly warned Congress that neither DHS nor GSA has provided the kind of transparency this project requires,” Mosteller said. 

Adding to the concern is the sheer volume of underused federal buildings. Mosteller noted that even in occupied buildings, only about 25% of space is actually in use on average. In response, the GSA has identified 34 buildings, many in downtown D.C., for potential sale. If sold at market value, those buildings alone could net $1.8 billion over the next decade. 

“These aren’t theoretical savings, they’re real dollars that could help reduce waste,” Mosteller said. “And the GSA is finally moving in the right direction, now that they’ve been empowered to streamline the process.” 

With waste like this in plain view, reforming the GSA may be one small, but meaningful, step toward smarter government spending.