H. Rpt. 119-562 accompanies the "Smart Space Act of 2026" — legislation that falls within the Transportation and Infrastructure Committee's jurisdiction. Committee reports serve as the official legislative history of a bill, documenting what the legislation would do and why the committee recommends passage. Reports of this kind include the committee's section-by-section analysis, any amendments adopted during markup, the Congressional Budget Office cost estimate, dissenting views from minority members, and the legal basis for the legislation. Courts and agencies consult committee reports when interpreting enacted laws, making these documents important beyond the immediate legislative moment.
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House Report 119-562 - SMART SPACE ACT OF 2026
[House Report 119-562]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 119-562
=======================================================================
SMART SPACE ACT OF 2026
---------------
March 20, 2026.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
---------------
Mr. Graves, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H.R. 7388]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 7388) to direct the Administrator
of General Services to convene consultation meetings to
identify alternative financing solutions for the construction
of new public buildings that will reduce costs to the Federal
Government, and for other purposes, having considered the same,
reports favorably thereon with an amendment and recommends that
the bill as amended do pass.
CONTENTS
Page
Purpose of Legislation........................................... 2
Background and Need for Legislation.............................. 3
Hearings......................................................... 5
Legislative History and Consideration............................ 5
Committee Votes.................................................. 5
Committee Oversight Findings and Recommendations................. 6
New Budget Authority and Tax Expenditures........................ 6
Congressional Budget Office Cost Estimate........................ 6
Performance Goals and Objectives................................. 7
Duplication of Federal Programs.................................. 7
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 7
Federal Mandates Statement....................................... 7
Preemption Clarification......................................... 7
Advisory Committee Statement..................................... 7
Applicability to Legislative Branch.............................. 8
Section-by-Section Analysis of the Legislation................... 8
Changes in Existing Law Made by the Bill, as Reported............ 8
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Smart Space Act of 2026''.
SEC. 2. PROJECT RECOMMENDATIONS.
(a) Meetings and Consultations.--Not later than 90 days after the
date of enactment of this Act, the Administrator of General Services
shall convene consultation meetings to identify alternative financing
solutions for the construction or renovation of public buildings, or
necessary work to prepare such buildings for disposal that will reduce
costs to the Federal Government.
(b) Meetings.--In convening consultation meetings under subsection
(a), the Administrator shall include--
(1) experts related to private commercial real estate;
(2) experts related to Federal real estate; and
(3) if available, State, including the District of Columbia,
real estate experts experienced with leveraging private
financing for public buildings and facilities.
(c) Report and Recommendations.--Not later than 120 days after the
date of enactment of this Act, the Administrator shall submit to the
President--
(1) recommendations on types of public-private partnerships
and alternative financing methods best suited for meeting the
public building needs of the Federal Government; and
(2) a list of recommended projects related to public
buildings for which such methods should be used with details on
which methods and types of public-private partnerships are
recommended for each project.
(d) Recommended Project List.--In submitting a list of recommended
projects under subsection (c)(2), the Administrator shall submit
projects that the Administrator determines--
(1) serve core missions of the Federal Government for which
maintaining the functions in federally owned space over the
long-term is critical;
(2) will result in either consolidations or relocations of
Federal departments or agencies out of costly, inefficient, and
underutilized space that the Administrator intends to sell or
dispose of once vacated; and
(3) with respect to standard office space, will result in
meeting a minimum building utilization of 60 percent or greater
as defined in section 2302 of the Thomas R. Carper Water
Resources Development Act of 2024 (40 U.S.C. 584 note).
(e) Transparency.--
(1) Report.--The Administrator shall submit the report under
subsection (c) to the Committee on Transportation and
Infrastructure in the House and the Committee on Environment
and Public Works in the Senate and make such report publicly
available on the website of the General Services
Administration.
(2) Timeline.--The Administrator of General Services shall
maintain on the website of the General Services Administration
information on the process under this Act, including any
timelines and milestones.
(3) Delays.--The Administrator shall report directly to the
President and Congress any delays with respect to the timing
and milestones described in paragraph (2).
(4) Meetings.--Meetings pursuant to subsection (a) shall be
noticed and open to the public and shall not be subject to
chapter 10 of title 5, United States Code.
(f) Definitions.--In this Act:
(1) Alternative financing; public-private partnership.--The
terms ``alternative financing'' and ``public-private
partnership'' may include--
(A) agreements that reflect an obligation by a non-
Federal entity to design, build, finance, operate, and
maintain an asset, or a combination thereof; and
(B) a ground-lease to a non-Federal party with a
subsequent lease back of the improvements.
(2) Public building.--The term ``public building'' has the
meaning given such term in section 3301 of title 40, United
States Code.
PURPOSE OF LEGISLATION
The purpose of H.R. 7388, the Smart Space Act of 2026, as
amended, is to direct the Administrator of General Services to
convene consultation meetings to identify alternative financing
solutions for the construction and renovation of public
buildings that will reduce costs to the Federal Government, and
for other purposes.
BACKGROUND AND NEED FOR LEGISLATION
The General Services Administration (GSA) currently manages
363 million square feet of space in 8,397 owned and leased
assets.\1\ The Government Accountability Office (GAO) reports
that operating, maintaining, and leasing office space costs
more than $8 billion annually.\2\
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\1\U.S. Gen. Servs. Admin., GSA Properties (last updated Sep. 19,
2024), available at https://www.gsa.gov/real-estate/gsa-properties.
\2\U.S. Gov't Accountability Off., GAO-24-106919, Federal Real
Property: Actions Needed to Better Assess Office Sharing Pilot's
Broader Applicability (Sept. 11, 2024), available at https://
www.gao.gov/products/gao-24-106919.
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In recent years, there have been increasing reports\3\ of
``shadow'' or ``dark'' space in Federal buildings and leases
which is unassigned, unused space.\4\ The concerns about
``shadow'' or ``dark'' space were emphasized during the
Subcommittee on Economic Development, Public Buildings, and
Emergency Management of the Committee on Transportation and
Infrastructure's Roundtable on ``The State of Federal Real
Estate,'' held on March 22, 2023, where participants noted that
30 percent of Federal employees plan to retire within the next
five years and nearly 30 percent of Federal employees with
remote work agreements live outside their assigned region.\5\
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\3\The State of Federal Real Estate: Roundtable Before the H. Comm.
of Transp. and Infrastructure, 118th Cong. (Mar. 22, 2023).
\4\U.S. Gen. Servs. Admin., Unused & Underused Space (Last reviewed
Mar. 4, 2022), available at https:// www.gsa.gov/real-estate/gsa-
properties/unused-underused-space.
\5\The State of Federal Real Estate, supra note 3.
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During the 117th Congress, the Committee requested that GAO
conduct a study on office space utilization rates across the 24
Chief Financial Officer (CFO) Act agency headquarters to better
understand how the Federal Government is utilizing its real
estate portfolio.\6\ In order to assess space utilization, GAO
collected building size and attendance data from all 24
agencies for one week each in January, February, and March of
2023. Utilization was then calculated by dividing in-office
attendance by the building's useable square footage or
capacity.\7\ GAO found that on average, 17 of the 24 CFO agency
headquarters were at 25 percent or less utilization.\8\ GAO
found the headquarters buildings for certain agencies,
including GSA, the Department of Agriculture, the Department of
Housing and Urban Development, the Office of Personnel
Management, the Small Business Administration, and the Social
Security Administration were as low as a nine percent space
utilization.\9\
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\6\Letter from Peter DeFazio, Chairman, H. Comm. on Transp. and
Infrastructure, et al. to Gene Dodaro, Comptroller General, GAO (Nov.
10, 2021) (on file with Comm.).
\7\Briefing from Staff, U.S. Gov't Accountability Off., to Staff,
H. Comm. on Transp. and Infrastructure (June 26, 2023, 11:00 AM EST).
\8\U.S. Gov't Accountability Off., GAO-24-107006, Federal Real
Property: Agencies Need New Benchmarks to Measure and Shed
Underutilized Space (Oct. 2023) available at https://www.gao.gov/
assets/d24107006.pdf.
\9\Id.
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In response to the concern raised in the GAO report,
Subcommittee Chairman Perry introduced the Utilizing Space
Efficiency and Improving Technologies (USE IT) Act of 2023.\10\
This legislation mandates GSA and Office of Management and
Budget (OMB) establish standardized methods for measuring
office occupancy across Federal agencies.\11\ The Act
introduced a minimum government-wide 60 percent occupancy
metric, directing Federal agencies to consolidate, repurpose,
or sell underused office space to increase operational
efficiency and reduce real estate costs.\12\ The USE IT Act
also specifically directs that department and agency
headquarters buildings in the National Capital Region be
consolidated and excess space sold to meet the minimum 60
percent occupancy metric.\13\ On January 4, 2025, the USE IT
Act was signed into law as part of the larger Thomas R. Carper
Water Resources Development Act (WRDA) of 2024.\14\
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\10\Utilizing Space Efficiency and Improving Technologies Act of
2023, Pub. L. No. 118-272.
\11\Id.
\12\Id.
\13\Id.
\14\Thomas R. Carper Water Resources Development Act of 2024, Pub.
L. No. 118-272.
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The GSA identified as an agency priority goal the
optimization of its real estate portfolio.\15\ Specifically,
GSA determined to increase the disposal of underperforming
assets and focus resources to ``core'' assets that align with
the long-term needs and mission of the Federal Government.\16\
Strategically selling Federal real estate is critical to saving
taxpayer dollars over the long-term. Not only does it avoid
paying for space not used or that is not critical for core
missions of agencies, but it also avoids billions of dollars in
liability to the taxpayer.
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\15\U.S. Gen. Servs. Admin., Optimize GSA's Real Estate Portfolio,
Agency Priority Goal, Action Plan, FY2024-Q2 Progress Update (Jun. 24,
2024), available at FY2024_Q2_
GSA_Progress_Optimize_GSAs_Real_Estate_Portfolio.pdf.
\16\Id.
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The GSA reported a $6.1 billion deferred maintenance and
repair backlog in fiscal year (FY) 2024, restoration projects
that are on the GSA's docket but have yet to be addressed. This
backlog grew from $1.39 billion in FY 2017.\17\ While
officially $6.1 billion, civilian agencies collectively
reported a deferred maintenance liability of $80 billion in FY
2022.\18\ Most recent budget documents do not communicate the
amount of time or finance required to address the ballooning
bottleneck.\19\ The GAO, in its most recent Priority Open
Recommendations publication to the GSA, recommends the
inclusion of an action plan in the GSA's budget materials. As
of February 2025, GSA continues to develop a model to project
the GSA's portfolio 10 years into the future, with anticipated
completion in March 2026.\20\
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\17\U.S. Gov't Accountability Off., GAO-25-108060, Priority Open
Recommendations: General Services Administration (May 16, 2025)
[hereinafter GAO-25-108060] available at https://www.gao.gov/products/
gao-25-108060.
\18\Library of Congress, Deferred Maintenance and Repair at
Civilian Agencies: Causes, Risks, and Policy Options (2024) available
at https://www.congress.gov/crs-product/R48211.
\19\GAO-25-108060 supra note 16.
\20\Id.
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On top of the billions in deferred maintenance, there are
reports that the liability is much higher given many Federal
buildings require much more than maintenance to continue
operating safely and efficiently.\21\ In addition, at times, it
costs money to make an underperforming, non-core asset
available for sale. For example, a Federal building may be
identified as a core asset due to agency mission and determined
as one for which the tenant agency should remain in owned
space. However, it may be cheaper for the taxpayer for a new,
more efficient building to be constructed or another Federal
building to be reconfigured than it would be to invest funds in
the existing building. Or, in some cases, a building may
already be empty, but utilities shared with other nearby
Federal buildings make selling the building challenging.
Examining solutions that leverage private financing to address
some of these issues, has the potential of saving significant
costs to the taxpayer.
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\21\America Builds: Making Federal Real Estate Work for the
Taxpayer: Hearing Before the H. Comm. on Transp. and Infrastructure,
119th Cong. (Mar. 5, 2025)(statement of David Winstead, Board Member,
Public Buildings Reform Board).
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H.R. 7388, as amended, is intended to ensure the GSA
consults with real estate experts to identify such solutions
and make recommendations to the President, Congress, and the
public.
HEARINGS
For the purposes of rule XIII, clause 3(c)(6)(A) of the
119th Congress, the following hearings were used to develop or
consider H.R. 7388:
On March 5, 2025, the Subcommittee on Economic Development,
Public Buildings, and Emergency Management of the Committee on
Transportation and Infrastructure held a hearing entitled,
``America Builds: Making Federal Real Estate Work for the
Taxpayer.'' The Subcommittee received testimony from Mr. David
Marroni, Director, Physical Infrastructure, GAO and Mr. David
Winstead, Board Member, Public Buildings Reform Board.
On December 11, 2025, the Subcommittee on Economic
Development, Public Buildings, and Emergency Management of the
Committee on Transportation and Infrastructure held a hearing
entitled, ``Cutting Costs, Adding Value: The Future of Federal
Property.'' The Subcommittee received testimony from Mr. Andrew
Heller, Acting Public Buildings Service Commissioner, GSA, Mr.
David Marroni, Director, Physical Infrastructure, GAO and the
Honorable Michael E. Capuano, Board Member, Public Buildings
Reform Board.
LEGISLATIVE HISTORY AND CONSIDERATION
H.R. 7388 was introduced in the United States House of
Representatives on February 5, 2026, by Mr. Burlison of
Missouri and referred to the Committee on Transportation and
Infrastructure. Within the Committee on Transportation and
Infrastructure, H.R. 7388 was referred to the Subcommittee on
Economic Development, Public Buildings, and Emergency
Management. The Subcommittee on Economic Development, Public
Buildings, and Emergency Management was discharged from further
consideration of H.R. 7388 on February 11, 2026.
The Committee considered H.R. 7388 on February 11, 2026,
and ordered the measure to be reported to the House with a
favorable recommendation, with amendment, by voice vote.
The following amendments were offered:
An Amendment in the Nature of a Substitute to H.R. 7388,
offered by Mr. Burlison of Missouri was AGREED TO by voice
vote.
An Amendment to the Amendment in the Nature of a Substitute
to H.R. 7388, offered by Ms. Norton of the District of Columbia
was AGREED TO by voice vote.
COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against.
No record votes were requested during consideration of H.R.
7388.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
NEW BUDGET AUTHORITY AND TAX EXPENDITURES
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
With respect to the requirement of clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
402 of the Congressional Budget Act of 1974, the Committee has
received the enclosed cost estimate for H.R. 7388 from the
Director of the Congressional Budget Office:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 7388 would direct the General Services Administration
(GSA) to consult with real estate experts to identify
alternative financing solutions for the construction or
renovation of federal buildings. Such solutions include long-
term contractual agreements in which a private entity provides
financing to build or renovate a federal facility. The bill
also would require GSA to report its findings to the President
and the Congress and publish that information on its website
within 120 days of enactment. The report would include a
recommended list of options to consolidate, relocate, and
dispose of federal properties.
Based on the cost of similar reporting requirements, CBO
estimates that implementing the bill would cost less than
$500,000 over the 2026-2031 period. Any related spending would
be subject to the availability of appropriated funds.
The CBO staff contact for this estimate is Matthew
Pickford. The estimate was reviewed by H. Samuel Papenfuss,
Deputy Director of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
PERFORMANCE GOALS AND OBJECTIVES
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goal and objective of this legislation is to amend
title 40, United States Code, to direct the Administrator of
General Services to convene consultation meetings to identify
alternative financing solutions for the construction and
renovation of public buildings that will reduce costs to the
Federal Government.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee finds that no provision
of H.R. 7388 establishes or reauthorizes a program of the
Federal government known to be duplicative of another Federal
program, a program that was included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS,
AND LIMITED TARIFF BENEFITS
In compliance with clause 9 of rule XXI of the Rules of the
House of Representatives, this bill, as reported, contains no
Congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule
XXI.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
PREEMPTION CLARIFICATION
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee finds that H.R. 7388 does not
preempt any state, local, or tribal law.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the definition of Section
5(b) of the appendix to Title 5, United States Code, are
created by this legislation.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
This section cites the bill as ``Smart Space Act of 2026''.
Section 2. Project recommendations
This section directs GSA, not later than 90 days after
enactment of the Act, to convene consultation meetings to
identify alternative financing solutions for the construction
or renovation of public buildings, or necessary work to prepare
such building for disposal to reduce costs to the Federal
Government.
This section requires GSA to include in the consultation
meetings real estate experts, including experts familiar with
commercial real estate, experts related to Federal real estate
and, if available, experts from states and the District of
Columbia with experience in leveraging private financing for
public buildings.
This section further requires that, not later than 120 days
of enactment of the Act, GSA submits to the President
recommendations on the types of public-private partnerships and
alternative financing methods and a list of recommended
projects. Such project must serve the core missions of the
Federal Government, result in the consolidation or relocation
of Federal agencies that will result in property sales and will
result in meeting at a minimum the 60 percent building
utilization metric established by WRDA of 2024.
This section requires GSA to submit the report also to the
House Committee on Transportation and Infrastructure and the
Senate Committee on Environment and Public Works as well as
make such report publicly available on its website.
The section further includes requires reporting on
timelines, milestones and delays as well as defines the terms
``alternative financing'' and ``public-private partnership.''
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
As reported by the Committee, H.R. 7388 makes no changes in
existing law.
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