Smart Space Act of 2026
- Bill Number
- H.R. 7388
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Government Operations and Politics
- Status
- Passed House
- Latest Action
- 2026-03-25: Received in the Senate and Read twice and referred to the Committee on Environment and Public Works.
- Last Updated
- 2026-06-11T23:41:28Z
AI-Generated Summary
Purpose
The "Smart Space Act of 2026" (H.R. 7388) aims to reduce costs to the Federal Government by directing the Administrator of the General Services Administration (GSA) to explore and recommend alternative financing options, such as public-private partnerships, for constructing, renovating, or preparing public buildings for disposal. It focuses on making federal real estate more efficient and cost-effective.
Key Provisions
- Consultation Meetings: Within 90 days of enactment, the GSA Administrator must convene meetings with experts in private commercial real estate, federal real estate, and (if available) state-level experts experienced in using private financing for public facilities. These meetings will identify financing solutions to lower federal costs for building construction, renovation, or disposal preparation.
- Report and Recommendations: Within 120 days of enactment, the Administrator must submit a report to the President including:
- Recommendations on suitable types of public-private partnerships (PPPs) and alternative financing methods for federal building needs.
- A list of specific recommended projects, detailing which financing methods or PPP types are best for each.
- Project Criteria: Recommended projects must:
- Support essential federal government missions where long-term use of federally owned space is vital.
- Enable consolidations or relocations from expensive, inefficient, or underused spaces that GSA plans to sell or dispose of after vacating.
- For standard office spaces, achieve at least 60% building utilization (a measure of how efficiently space is used, as defined in the Thomas R. Carper Water Resources Development Act of 2024).
- Transparency Requirements:
- The report must be sent to the House Committee on Transportation and Infrastructure and the Senate Committee on Environment and Public Works, and made publicly available on the GSA website.
- GSA must post updates on the process, timelines, and milestones on its website.
- Any delays in timelines must be reported directly to the President and Congress.
- Consultation meetings must be publicly noticed and open to the public, and they are exempt from the Federal Advisory Committee Act (FACA), which normally governs federal advisory committees to ensure openness and balance.
- Definitions:
- Alternative financing and public-private partnership (PPP): Broadly include arrangements where a non-federal entity designs, builds, finances, operates, maintains, or combines these for an asset; or ground-lease arrangements where the government leases land to a private party, who builds improvements, and the government leases them back.
- Public building: Defined as any federally owned or leased building used for federal purposes, per existing U.S. Code (40 U.S.C. § 3301).
Significant Changes to Existing Law
This act introduces a new, time-bound process for GSA to systematically evaluate and recommend private financing options for federal buildings, building on but not directly amending prior laws like the 2024 Water Resources Development Act's utilization standards. It exempts the required meetings from FACA (chapter 10 of title 5, U.S. Code), allowing more flexible public consultations without standard advisory committee rules. No other major statutory changes are specified, but it promotes innovative financing not previously mandated at this scale.
Potential Impacts
- On Government Agencies: GSA and federal departments may shift toward more efficient space use, reducing long-term costs through consolidations, relocations, and private financing. This could free up underutilized properties for sale, generating revenue, but might require agencies to adapt to new building standards or partnerships.
- On Citizens: Taxpayers could benefit from lower federal spending on real estate and more efficient government operations, potentially leading to better public services without increased budgets. Public transparency via websites and open meetings enhances accountability.
- On International Relations: No direct impacts; the act focuses on domestic federal property management.
Main Stakeholders Affected
- Federal Government Entities: Primarily GSA (leading implementation), federal agencies using public buildings, and Congress (via oversight committees).
- Private Sector: Commercial real estate experts and non-federal entities involved in financing, design, construction, or operations through PPPs.
- State and Local Governments: State real estate experts (including D.C.) may participate in consultations, potentially influencing how federal projects align with local needs.
- Public: Citizens and taxpayers, who gain from cost savings and transparency but may be indirectly affected by building changes in their communities.
Notable Legal, Constitutional, or Political Implications
- Legal: The FACA exemption streamlines consultations but could raise questions about advisory process fairness; however, public openness mitigates this. Broad definitions of PPPs and alternative financing provide flexibility but may invite future litigation over contract specifics or federal obligations.
- Constitutional: Aligns with Congress's spending power (Article I, Section 8) by promoting fiscal efficiency in federal property use, without infringing on executive authority—GSA reports directly to the President.
- Political: Encourages bipartisan goals of government efficiency and cost reduction, potentially appealing across ideologies by leveraging private sector innovation. It signals a push toward privatization in federal infrastructure, which could spark debates on public control versus cost savings, though the act's focus on core missions limits risks to essential functions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-03-25: Received in the Senate and Read twice and referred to the Committee on Environment and Public Works.
- 2026-03-24: Motion to reconsider laid on the table Agreed to without objection.
- 2026-03-24: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H2650)
- 2026-03-24: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
- 2026-03-24: DEBATE - The House proceeded with forty minutes of debate on H.R. 7388.
- 2026-03-24: Considered under suspension of the rules. (consideration: CR H2650-2651)
- 2026-03-24: Mr. Taylor moved to suspend the rules and pass the bill, as amended.
- 2026-03-20: Placed on the Union Calendar, Calendar No. 483.
- 2026-03-20: Reported (Amended) by the Committee on Transportation and Infrastructure. H. Rept. 119-562.
- 2026-03-20: Reported (Amended) by the Committee on Transportation and Infrastructure. H. Rept. 119-562.
- 2026-02-11: Ordered to be Reported (Amended) by Voice Vote.
- 2026-02-11: Committee Consideration and Mark-up Session Held
- 2026-02-11: Subcommittee on Economic Development, Public Buildings, and Emergency Management Discharged
- 2026-02-05: Referred to the Subcommittee on Economic Development, Public Buildings, and Emergency Management.
- 2026-02-05: Referred to the House Committee on Transportation and Infrastructure.
Bill Versions
- Smart Space Act of 2026 — issued 2026-03-24 — PDF (6 pages)
- Smart Space Act of 2026 — issued 2026-02-05 — PDF (5 pages)
- Smart Space Act of 2026 — issued 2026-03-25 — PDF (5 pages)
- Smart Space Act of 2026 — issued 2026-03-20 — PDF (8 pages)