Federal Reserve HQ Construction Project Plagued by Cost Overruns and Mismanagement
The Federal Reserve's headquarters construction project has been plagued by cost overruns and mismanagement. The total budget for the project has more than doubled, from $921 million in February 2020 to $2.381 billion today. According to a report released on September 29 by the Fed's inspector general, the board failed to effectively manage its contract with the general contractor, deviating from cost-control provisions and not enforcing a guaranteed maximum price.
The project, which includes renovating the Eccles Building and constructing a new building at 1951 Constitution Avenue, has been delayed multiple times. The original completion date was set for the second quarter of 2024, but it is now expected to be finished in December 2027. The inspector general's report found no reasonable basis to believe that a federal crime had been committed or any administrative misconduct.
Donald Trump, who visited the construction site in July 2025 with Federal Reserve Chair Jerome Powell, has blamed Powell for the cost overruns and demanded his resignation. However, the report by the inspector general concluded that there was no evidence to support Trump's claims of wrongdoing by Powell.