U.S. Federal Government Wasting $7 Billion On Offices Nobody Uses, Report Reveals

The federal government is spending approximately $7 billion annually on leased office space, even as about half of its employees continue to work from home regularly, more than four years after the onset of the COVID-19 pandemic. 

A new report from the House Oversight Committee highlights the inefficiencies of the government’s remote work policies, revealing that many federal offices remain largely vacant while taxpayer dollars fund unused spaces.

According to the findings released Wednesday, 17 of the 24 federal agencies are operating at less than half capacity, with some buildings being used as little as 9%. 

Despite this, federal agencies spent $3.3 billion on furniture between 2020 and 2022, even as the shift to remote work became widespread. 

A separate investigation by Sen. Joni Ernst (R-Iowa) revealed that the government owns 7,000 entirely vacant buildings, with an additional 2,500 partially occupied by federal employees.

The report notes that more than half of federal workers were regularly teleworking or fully remote as of May 2024, with many agencies continuing to support telework options under agreements with federal labor unions. 

Critics, including Oversight Committee Chairman James Comer (R-Ky.), argue that these policies are wasteful and hinder the effectiveness of federal agencies, especially as union agreements make it challenging to reverse the remote work trend.

While Washington D.C. Mayor Muriel Bowser has called for a return to in-person work, some agencies are negotiating long-term telework arrangements, with Social Security Administration staff securing a deal in December to maintain remote work until 2029. 

The committee’s investigation suggests that telework has become a major obstacle for future administrations in managing federal employee attendance and operational efficiency.

The issue has drawn attention from both sides of the political aisle, with Republicans pushing for stronger oversight and accountability, according to the New York Post. 

The House Oversight Committee is recommending that the incoming Trump administration leverage automation and other tools to better track remote work, though any changes may face legal challenges from federal unions.