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USDA says it will begin transferring vacant South Building to GSA, citing $1.6 billion in repairs

U.S. Department of Agriculture (USDA) press conference · February 25, 2026
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Summary

USDA announced it has started the process of turning the South Building back to the General Services Administration for disposition, citing heavy vacancy and roughly $1.0–1.6 billion in deferred or delinquent maintenance; GSA said it will consult stakeholders and explore reuse for Southwest D.C.

The U.S. Department of Agriculture announced on Thursday that it is beginning the process of returning the South Building to the General Services Administration for disposition, citing extensive vacancy and large deferred maintenance costs. "Today, we are officially starting the process of turning the South Building back over to the General Services Administration," the department said.

The announcement, delivered at a USDA press conference, framed the move as part of a broader reorganization intended to "right size" USDA's federal footprint and reduce taxpayer exposure to underused and deteriorating property. USDA officials said the building is currently largely empty and imposes high annual operating costs and a backlog…

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