Federal office relocations deepen uncertainty for DC economy

The Trump administration is advancing plans to relocate federal offices from the Washington metropolitan area to lower-cost regions of the country, a move that could severely impact the region’s economy, reports the Washington Business Journal. Agencies have until 14 April 2025 to propose relocations, and GSA must submit a plan within 60 days to shed unneeded federal real estate. The White House is also preparing for mass firings as part of a broader effort to shrink the federal workforce.

DC Mayor Muriel Bowser has urged the administration to consider the area's infrastructure advantages and has advocated repurposing underutilized federal buildings for residential use. However, an influx of government-owned properties onto the market could depress real estate values. Similar relocation attempts, such as the Bureau of Land Management’s short-lived move to Colorado during Trump’s first term, have faced logistical challenges.

With more than 370,000 federal workers in the DC metro area, this policy shift raises concerns about the city’s economic future and the long-term stability of the federal presence in Washington.