Fed Renovation Costs Soar as GSA Takes Over Troubled Project

The Federal Reserve's costly renovation project has hit another snag after it was revealed that mistakes were made in its management, contributing to significant cost overruns and delays. The project, which aims to renovate the Marriner S. Eccles and 1951 Constitution Avenue NW buildings, has seen its costs surge from $1.317 billion in February 2020 to $2.381 billion in December 2024.

In a bid to get the project back on track, Fed Chair Kevin Warsh has tasked the General Services Administration (GSA) with managing the completion of the renovation. The GSA will work closely with the Chairman and bring its expertise in construction, project management, and federal real estate to ensure the project's success.

Warsh said that he sought the advice of GSA Administrator Edward Forst and has confidence in his expertise in handling large-scale construction projects. Forst noted that GSA will work closely with the Fed to figure out how to get the project completed quickly without any further delays, as well as determine ways in which they can save costs when possible.