President Donald Trump has signed an executive order overturning decades-old policies requiring federal agencies to prioritize locating in downtown and historic districts. This move is part of the administration's broader effort to decentralize federal operations and encourage agencies to relocate to more cost-effective locations across the country.
The new directive rescinds previous mandates issued by Presidents Jimmy Carter in 1978 and Bill Clinton in 1996, which had emphasized placing federal offices within central business districts and historic properties. These earlier policies were intended to support urban centers and preserve historic buildings, but, according to the Trump administration, they have hindered cost efficiency and operational effectiveness.
The executive order argues that such restrictions have prevented agencies from seeking affordable office space and have failed to prioritize delivering efficient government services.
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“The American people are spread across more than 3.8 million square miles in urban, suburban, and rural areas,” the order states, adding that federal departments and agencies must be located where the population resides to provide high-quality, cost-effective services. This rationale underpins the administration’s push to move federal offices beyond the traditional confines of Washington, D.C.’s downtown core.
The order coincides with a recent deadline set by the administration for agencies to submit plans to relocate office space outside the D.C. metropolitan area. Early indications suggest that these plans could lead to substantial changes. The Departments of Housing and Urban Development and Agriculture are among the agencies preparing to overhaul their presence in Washington.
HUD is actively considering vacating its headquarters at the Robert C. Weaver Federal Building on the National Mall, a Brutalist structure that has housed the agency since 1968. The building’s design has drawn criticism from Housing Secretary Scott Turner, who publicly called it the “ugliest building in DC.” The facility also faces mounting deferred maintenance costs.
These financial pressures, coupled with a desire to foster a more appealing work environment, have driven HUD to explore relocating either within the broader Washington metropolitan area or potentially to cities such as Houston, Kansas City, or Akron, according to sources speaking with Bloomberg. However, a HUD spokesperson has denied rumors about moves outside the capital region, emphasizing that discussions remain ongoing.
Meanwhile, the USDA plans a more dramatic restructuring by dismantling its Washington headquarters presence altogether. Several officials familiar with the department’s plans have told Government Executive that thousands of headquarters staff will be relocated to three yet-to-be-determined hubs around the country.
This decentralization effort will involve closing some existing department facilities and not renewing many field office leases. Employees affected by these changes may be offered opportunities to transfer to the new hubs or apply for other positions within the department.
Additionally, USDA is expected to sell one of its two Washington headquarters buildings as part of this downsizing.
These developments reflect the General Services Administration's broader strategy to reduce the federal government’s real estate footprint and address more than $17 billion in deferred maintenance costs across older federal buildings. While earlier proposals to sell hundreds of federal properties—including some cabinet-level headquarters—were withdrawn, the administration continues to seek ways to optimize federal office space and cut costs.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
