DISPOSAL Act
- Bill Number
- H.R. 6675
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-02-02: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
- Last Updated
- 2026-02-03T09:05:40Z
AI-Generated Summary
Purpose of the Legislation
The DISPOSAL Act aims to require the sale or long-term leasing of underutilized federal buildings in Washington, DC, to reduce government expenses, optimize property use, and generate revenue for deficit reduction. It promotes efficient management of federal real estate by mandating disposals and allowing flexibility for agency relocations.
Key Provisions
- Specified Buildings for Disposal: The Administrator of General Services (GSA) must dispose of six named federal buildings in Washington, DC, including the Frances Perkins Federal Building (200 Constitution Avenue NW), James V. Forrestal Building (1000 Independence Avenue SW), and others housing agencies like the Department of Labor and Department of Agriculture.
- Methods of Disposal: GSA can sell buildings at fair market value based on their "highest and best use" (most beneficial future purpose) or enter ground leases (leasing the land while allowing development) for up to 99 years. Transactions can include relocating occupying agencies to other federal spaces or short-term leasebacks (up to 5 years) for the agencies.
- Prohibitions and Restrictions: Sales or leases cannot go to foreign persons, foreign entities, or entities with foreign beneficial owners (defined under existing law to prevent foreign control). GSA cannot use "build-to-suit" leases, where a new building is custom-designed for a specific agency's needs during relocation.
- Relocation of Agencies: GSA has full authority to choose new locations for relocated agencies, after consulting with agency heads on mission needs. For moves outside Washington, DC, GSA must notify relevant congressional committees 30 days in advance. Relocations are exempt from certain procurement laws (e.g., competition requirements and public building site approvals).
- Exemptions from Other Laws: Disposals are exempt from:
- McKinney-Vento Homeless Assistance Act (requirements to offer properties for homeless use).
- National Environmental Policy Act (NEPA; environmental impact reviews).
- National Historic Preservation Act (historic site protections).
- Certain federal procurement and advertising rules.
- For any additional buildings added later, exemptions apply only if the building exceeds 100,000 square feet (for homeless act) or is a National Historic Landmark (for preservation act).
- Net Proceeds Handling: Proceeds from sales/leases fund relocation costs via the Federal Buildings Fund (with future congressional appropriation required); excess goes to the U.S. Treasury to reduce the federal deficit.
- Adding More Buildings: GSA can add up to 20 additional underutilized federal buildings (average use below 60% over the prior year) per calendar year, after 30 days' notice to congressional committees. Additions are subject to congressional disapproval under the Congressional Review Act (a process allowing Congress to block rules).
- Other Details: Existing GSA funds for federal buildings are available without expiration for relocations. The act sunsets (ends) on December 31, 2028, but does not affect prior actions, rights, or ongoing processes.
Significant Changes to Existing Law
- Mandatory Disposals: Unlike prior laws allowing voluntary GSA disposals, this mandates action on specific buildings and enables adding others, streamlining the process.
- Broad Exemptions and Discretion: Introduces exemptions from environmental, historic, and homeless-related reviews, which typically delay disposals. It also grants GSA "sole and absolute" relocation authority and precludes judicial review (court challenges under administrative law or budget acts), overriding standard oversight.
- Foreign Ownership Ban: Codifies restrictions from the Secure Federal LEASEs Act, extending them to sales and ground leases.
- Fiscal Mechanisms: Requires deficit reduction from proceeds and makes funds available until spent, altering how federal building funds are typically appropriated and limited.
- Congressional Oversight: Adds a disapproval mechanism for new building additions, treating notices as "rules" under review laws, while limiting it to 20 per year.
Potential Impacts
- Government Agencies: Agencies in affected buildings (e.g., Departments of Labor, Energy, Agriculture, Health and Human Services) may face relocations, potentially disrupting operations but leading to more efficient spaces. Costs are covered, but moves outside DC could affect coordination with other federal entities.
- Citizens and Local Communities: Could free up prime Washington, DC, land for private development (e.g., commercial or residential), boosting local economy and tax revenue. However, exemptions from homeless and environmental reviews might limit community input on reuse, potentially affecting public access or green spaces.
- Federal Budget: Generates revenue for relocation (estimated implementation costs) and deficit reduction, promoting fiscal savings from underused properties (valued in billions collectively).
- International Relations: Minimal direct impact, though the foreign ownership prohibition reinforces U.S. security policies by preventing foreign influence over former federal sites.
Main Stakeholders Affected
- GSA and Federal Agencies: GSA leads implementation; occupying agencies (e.g., DOL, DOE, USDA, HHS) must adapt to relocations.
- Congressional Committees: Senate Environment and Public Works and House Transportation and Infrastructure oversee notices and can disapprove additions.
- Potential Buyers/Lessees: U.S.-based developers, businesses, or entities seeking high-value DC properties, excluded if foreign-linked.
- Washington, DC, Residents and Local Government: Impacted by property redevelopment, potential job creation, and changes to federal presence in the city.
- Homeless Advocacy and Environmental Groups: Indirectly affected by exemptions, reducing opportunities for property use in social programs or environmental protections.
Notable Legal, Constitutional, or Political Implications
- Legal: Preclusion of judicial review limits challenges to GSA decisions, potentially raising due process concerns but streamlining efficiency. Exemptions from NEPA and historic laws could invite future lawsuits over unaddressed impacts, though the act shields most actions.
- Constitutional: Broad executive discretion (via GSA) with congressional notice/disapproval balances powers but might test separation of powers if seen as delegating too much without checks. The foreign ownership ban aligns with national security but could face equal protection scrutiny if applied unevenly.
- Political: Signals a push for shrinking the federal footprint in DC, appealing to fiscal conservatives by cutting costs and reducing bureaucracy. The 2028 sunset allows temporary authority, possibly for testing, while the list of buildings (named after prominent figures) may spark debate over symbolic federal heritage. No partisan bias is evident in the bill text, but sponsors (mostly Republicans) suggest motivations tied to government efficiency.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Steube, W. Gregory [R-FL-17]
Cosponsors (12)
Rep. Clyde, Andrew S. [R-GA-9], Rep. Bice, Stephanie I. [R-OK-5], Rep. Bean, Aaron [R-FL-4], Rep. Feenstra, Randy [R-IA-4], Rep. Moore, Barry [R-AL-1], Rep. Biggs, Sheri [R-SC-3], Rep. Self, Keith [R-TX-3], Rep. Harrigan, Pat [R-NC-10], Rep. Norman, Ralph [R-SC-5], Rep. Hageman, Harriet M. [R-WY-At Large], Rep. Roy, Chip [R-TX-21], Rep. Gill, Brandon [R-TX-26]
Recent Actions
- 2026-02-02: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
- 2025-12-11: Referred to the House Committee on Transportation and Infrastructure.
- 2025-12-11: Introduced in House
- 2025-12-11: Introduced in House
Bill Versions
- Disposing of Inactive Structures and Properties by Offering for Sale And Lease Act — issued 2025-12-11 — PDF (11 pages)