Fed Watchdog Finds No Crimes in $2.4B Building Renovation, Cites Mismanagement
The Federal Reserve's internal watchdog has released a report finding that the agency broadly mismanaged its $2.4 billion building renovation project, but did not uncover any criminal violations as alleged by Trump administration prosecutors.
The inspector general's review found that the Fed's Board of Governors and staff made several missteps in managing the contract, including failing to secure a comprehensive cost estimate at the beginning of the project.
Construction costs for the renovation more than doubled from an original estimate of $921 million in February 2020 to $2.018 billion by December 2024. The project was originally slated to be completed by mid-2024 but is now expected to last until December 2027.
The report also found that a design change made by the Fed in 2023 contributed significantly to the cost overruns, as it delayed the project's design and prevented the Fed from seeking a maximum cost ceiling for the project at that time.