GSA set to absorb $400B in procurement under sweeping Trump executive order

GSA is preparing to take on an unprecedented role in federal procurement, centralizing as much as $400 billion in annual contract spending under a new executive order signed by President Trump, according to internal comments obtained by Nextgov/FCW.

Josh Gruenbaum, head of GSA’s Federal Acquisition Service, told employees Thursday that the agency will “quadruple in size” as it takes over domestic commercial acquisitions from other federal agencies. GSA has already begun onboarding the OMB and OPM, the latter of which laid off its entire procurement staff last month.

While the text of the executive order has not been released, GSA Acting Administrator Stephen Ehikian framed the move as a cost-saving measure, emphasizing the power of “one buyer on behalf of the government.” GSA currently oversees the schedules program and several major contract vehicles, but this marks a dramatic expansion.

GSA is simultaneously shrinking its workforce and deploying AI tools to streamline operations. Employees are being offered early retirements, and several offices within its Technology Transformation Services were shut down this week.

As the agency shifts into what leadership calls a “build back phase,” it also plans to overhaul FedRAMP and consolidate real estate holdings—having already canceled nearly 700 leases.