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White House budget office tells agencies to draft mass firing plans ahead of potential shutdown

Summary

  • memo orders agencies to prepare
  • Shutdown would permanently cut federal positions
  • Democrats reject Trump’s short-term funding bill demands
  • Schumer, Jeffries vow legal and political pushback

WASHINGTON (AP) — The White House is telling agencies to prepare large-scale firings of federal workers if the government shuts down next week.

In a memo released Wednesday night, the Office of Management and Budget said agencies should consider a reduction in force for federal programs whose funding would lapse next week, is not otherwise funded and is “not consistent with the President’s priorities.” That would be a much more aggressive step than in previous shutdowns, when federal workers not deemed essential were furloughed but returned to their jobs once Congress approved government spending.

A reduction in force would not only lay off employees but eliminate their positions, which would trigger yet another massive upheaval in a federal workforce that has already faced major rounds of cuts this year due to efforts from the Department of Government Efficiency and elsewhere in the .

Once any potential ends, agencies are asked to revise their reduction in force plans “as needed to retain the minimal number of employees necessary to carry out statutory functions,” according to the memo, which was first reported by Politico.

This move from OMB significantly increases the consequences of a potential government shutdown next week and escalates pressure on Senate Minority Leader and House Minority Leader . The two leaders have kept nearly all of their Democratic lawmakers united against a clean funding bill pushed by President Donald Trump and congressional Republicans that would keep the federal government operating for seven more weeks, demanding immediate improvements to health care in exchange for their votes.

In statements issued shortly after the memo was released, the two Democrats showed no signs of budging.

“We will not be intimidated by your threat to engage in mass firings,” Jeffries wrote in a post on X. “Get lost.”

Jeffries called Russ Vought, the head of OMB, a “malignant political hack.”

Schumer said in a statement that the OMB memo is an “attempt at intimidation” and predicted the “unnecessary firings will either be overturned in court or the administration will end up hiring the workers back.”

OMB noted that it held its first planning call with other federal agencies earlier this week to plan for a shutdown. The budget office plays point in managing federal government shutdowns, particularly planning for them ahead of time. Past budget offices have also posted shutdown contingency plans — which would outline which agency workers would stay on the job during a government shutdown and which would be furloughed — on its website, but this one has not.

The memo noted that congressional Democrats are refusing to support a clean government funding bill “due to their partisan demands,” which include an extension of enhanced health insurance subsidies set to expire at the end of the year, plus a reversal of Medicaid cuts that were included in Republicans’ big tax and spending cuts law.

“As such, it has never been more important for the Administration to be prepared for a shutdown if the Democrats choose to pursue one,” the memo reads, which also notes that the GOP’s signature law, a major tax and border spending package, gives “ample resources to ensure that many core Trump Administration priorities will continue uninterrupted.”

OMB noted that it had asked all agencies to submit their plans in case of a government shutdown by Aug. 1.

“OMB has received many, but not all, of your submissions,” it added. “Please send us your updated lapse plans ASAP.”

Starbucks to close stores, cut more jobs as CEO deepens restructuring

Summary

(Reuters) –Starbucks said on Thursday it would shutter underperforming stores in North America and cut 900 jobs in a $1 billion restructuring effort, as CEO Brian Niccol presses ahead with his plan to revive the company’s fortunes.

In his first year on the job, Niccol has zeroed in on investing in Starbucks‘ stores to reduce service times and restore a coffee house environment, while also trimming management layers.

The company has posted six straight quarters of sales decline in the U.S. as demand for its pricey lattes took a hit from consumers turning picky and competition ramping up.

“During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed,” Niccol said in a letter to employees.

The company expects a majority of the to be completed by the end of this fiscal year, taking its company-operated store count in North America down by about 1%.

The CEO said the company would end the fiscal year with nearly 18,300 total Starbucks locations – company operated and licensed – across the U.S. and Canada. This compares to the 18,734 locations disclosed in a July regulatory filing.

Niccol has enjoyed the confidence of investors since taking over after his leadership at Chipotle Mexican Grill where he is credited with leading a turnaround at the burrito chain.

Starbucks said on Thursday the would be in its support teams and added the company would also close many open positions.

The company employed about 10,000 people in non-coffee house roles in the U.S., as of September 29, 2024.

“This is a more significant action that we understand will impact partners and customers,” Niccol said.

At the same time, Starbucks is investing to improve staffing and incorporate technology to more efficiently sequence orders at its coffee shops to enhance customer experience.

The company said earlier this year it would eliminate 1,100 corporate roles. In August, it also announced a modest 2% hike to all salaried employees in North America this year.

(Reporting by Juveria Tabassum in Bengaluru; Editing by Leroy Leo and Sriraj Kalluvila)

Trump’s workforce purge batters DC’s job market and leads to rise in homes for sale, report finds

Summary

  • DC region rate highest in U.S. at 6%
  • Federal under slash thousands of positions
  • 13,231 federal contracts terminated, saving $59 billion
  • Housing supply in DMV up 64% since June 2024

WASHINGTON (AP) — The Department of Government Efficiency’s remaking of the federal workforce has battered the Washington job market and put more households in the metropolitan area in financial distress, according to a report released Wednesday.

The number of homes for sale in the District of Columbia, Maryland and Virginia region, also known as the DMV, is up by 64% since June 2024, and the region’s unemployment rate is the highest in the nation, according to the DMV Monitor, a real-time data interactive created by the with the Metropolitan Washington Council of Governments.

Washington has had the nation’s highest seasonally adjusted unemployment rate for four straight months. The unemployment rate was 5.3% in January and ticked up to 6% in August, compared with the 4.3% national average, according to Bureau of Labor Statistics data.

From the start of President Donald Trump’s second term in January, DOGE, led by his then-adviser Elon Musk, instigated purges of federal agencies with the expressed mission of rooting out fraud, waste and abuse. DOGE led to tens of thousands of job cuts, including and people who accepted financial incentives to quit. Some people were rehired, a reflection of the haphazard process. Although losses were felt around the country, the Washington area was particularly hard hit.

Scott Kupor, director of the U.S. Office of Personnel Management, said last month that there will be 300,000 fewer federal workers on the payroll nationwide by the end of the year. The government has about 2.5 million workers, including military members.

Contractors have been affected, too. DOGE’s website states that 13,231 federal government contracts have been terminated, totaling $59 billion in savings. In fiscal year 2024, more than 100,000 companies received contracts, totaling roughly $774 billion.

Besides the mass layoffs, the Republican president’s other actions to remake the image of the nation’s capital — including deploying National Guard troops and federalizing the city’s local Metropolitan Police Department — “could shape consumer spending and investment in the local economy,” the report says.

The report also says private-sector job growth is stagnating, “with many new jobs not aligned with the skills and experiences of most laid-off federal workers.”

“As a result,” it says, “job postings were not as robust as they were in peer regions, which is concerning when unemployment has soared, especially in the suburbs.”

Taylor Rogers, a White House spokeswoman, said D.C. “has often had the highest unemployment rate in the nation, even during Joe Biden’s federal hiring frenzy.” D.C.’s unemployment rate hit 11.3% at the height of the COVID-19 pandemic and fell to 5.3% at the end of Biden’s presidency. “This longstanding problem is due to an overreliance on federal bloat and sky-high crime, two problems that President Trump is quickly and successfully fixing by cracking down on crime in the Nation’s capital and implementing supply-side reforms that have already created over half a million private-sector jobs for American-born workers,” Rogers said.

The DMV region is home to the second highest share of college graduates of any major U.S. metropolitan area, and one-fifth of federal workers are concentrated in the area.

In July, the Supreme Court cleared the way for Trump’s Republican administration to downsize the federal workforce further, despite warnings that critical government services would be lost. The ruling does not apply to every agency, and other legal challenges to federal worker firings continue.

Additionally, hundreds of who lost their jobs in Musk’s cost-cutting blitz are being asked to return to work.

“The DMV region’s economy has grown even weaker than the nation in many categories due to the ‘s seismic actions to shrink the federal government,” the report reads.

And given proposed additional cuts in the future, the DC Fiscal Policy Institute predicts it’s likely more Washington residents and others from around the region who work in Washington will lose their federal jobs over the coming months and years.

The latest Washington Office of Revenue Analysis figures show that initial unemployment insurance claims have jumped by 33.7% compared with this time last year.

US implements EU trade deal, 15% autos tariffs retroactive to Aug 1

Summary

  • finalizes U.S.-EU trade agreement
  • Auto and auto parts tariffs cut from 25% to 15% retroactive to Aug. 1
  • Exemptions include aircraft, generic drugs, and raw materials
  • German automakers’ shares rose after tariff confirmation

WASHINGTON (Reuters) -President Donald Trump’s administration said on Wednesday it was formally implementing the U.S. trade agreement with the European Union, confirming that a 15% duty rate for EU autos and auto parts began on August 1 and listing tariff exemptions for generic pharmaceuticals, aircraft and aircraft parts.

In a Federal Register notice, the Commerce Department and the U.S. Trade Representative’s office said they have amended the tariff schedule to implement the framework agreement reached with the EU in July that lowers the Republican president’s tariffs to 15% on most imports from the EU, including autos.

The deal was subsequently modified to make the duty rate retroactive to August 1, but European automakers have been waiting for weeks for the formal U.S. notice.

The U.S. notice also specifies hundreds of products from the EU that are exempt from Trump’s new tariffs, including natural resources such as cork lacking in the United States, all aircraft and aircraft parts, and generic pharmaceuticals and their ingredients and chemical precursors.

The notice is in line with a previous Trump executive order that offered certain exemptions from his “reciprocal” tariffs and so-called Section 232 national security duties to countries that negotiate trade deals with the United States.

Among items that would be exempted for EU exporters are graphite, nickel, rare earths, magnesium and certain other metals, as well as hundreds of electronic and mechanical components that are used in aircraft production.

For EU autos and auto parts, the tariff rate dropped to 15% from 25% effective August 1, easing anxiety in an industry that had been waiting for the long-delayed confirmation in order to make sourcing decisions.

Shares in German automakers rose following the confirmation, reflecting relief over the formal implementation of a move announced almost two months ago.

Oliver Blume, of , Europe’s largest carmaker, had said last week that the actual lowering of U.S. auto import tariffs from August was still subject to talks between the United States and EU, and could take several weeks.

Shares in luxury sportscar maker Porsche , which has no production sites outside Europe, were up about 2.2%, while and rose 1.4% and 1.1%, respectively.

(Reporting by David Lawder, additional reporting by Christoph Steitz and David ShepardsonEditing by Marguerita Choy and Will Dunham)

 

Capital One $425 million settlement with depositors should be rejected, US states say

Summary

  • 18 states oppose ‘s $425M
  • Deal covers account holders since 2019
  • States say depositors get just $54 of $717 in losses
  • Bank could avoid more than $2.5B in payouts

(Reuters) -A bipartisan group of 18 U.S. states told a federal judge that Capital One’s $425 million settlement with depositors who felt cheated out of high interest rates should be rejected, because it lets the bank continue short-changing customers.

Led by New York Attorney General , the states objected in a filing made public on Wednesday in in Alexandria, Virginia, where U.S. District Judge David Novak granted preliminary settlement approval in June.

Capital One and a lawyer for the depositors had no immediate comment.

Capital One did not admit wrongdoing under the settlement.

The May 16 settlement addressed claims that Capital One froze rates at 0.3% on its “high interest” 360 Savings accounts, while quietly offering rates exceeding 4% to new customers on similarly named 360 Performance Savings accounts.

Capital One, based in McLean, Virginia, agreed to pay 360 Savings depositors $300 million to cover interest they missed out on, plus another $125 million in interest if the depositors still held their accounts.

STATES SAY SETTLEMENT WOULD SAVE BANK MORE THAN $2.5 BILLION

But the states told Novak that 360 Savings depositors would earn just 0.78% under the settlement, below the 3.5% that Capital One now offers 360 Performance Savings depositors.

The states said this would save the sixth-largest U.S. commercial bank more than $2.5 billion, while providing typical depositors just $54 of the $717 in interest lost.

They also complained that Capital One wouldn’t have to change its behavior. They said Novak should reject Capital One’s claim that the settlement preempted James’ own lawsuit on behalf of 360 Savings depositors in her state.

The settlement covers depositors with 360 Savings accounts at any time since September 18, 2019. A hearing to consider final settlement approval is scheduled for November 6.

Other states objecting to the settlement include Arizona, California, Colorado, Connecticut, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, Ohio, Oregon, Rhode Island and Washington.

The U.S. Consumer Financial Protection Bureau filed a similar lawsuit against Capital One in January.

It dropped that case in February, after President Donald Trump took office and the White House largely ended the ‘s enforcement activity.

The case is In re Capital One 360 Savings Account Interest Rate Litigation, U.S. District Court, Eastern District of Virginia, No. 24-md-03111.

 

(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler)

 

Area Development ranks Virginia No. 1 for workforce training

The Virginia Partnership’s has been ranked the top workforce training program in the nation by magazine.

Area Development is an executive magazine that has been covering corporate site selection and relocation since 1965. Its 15th annual Top States for Doing Business report was based on results from a survey of expert consultants advising companies on site location.

The Virginia Talent Accelerator Program (VTAP) is a workforce initiative that accelerates new facility startups by providing fully customized recruitment and training services. The program services, meant to incentivize job creation, are provided at no cost to qualified new and expanding companies.

Area Development says Virginia’s workforce training program was followed by Georgia, South Carolina, Tennessee and North Carolina, which it said were “all states with well-regarded, state-supported programs that align closely with employer needs.”

Virginia ranked seventh overall in the 2025 Top States for Doing Business report, up two spots from its ranking the previous year.

“Virginia doesn’t follow, we lead, and our Virginia Talent Accelerator Program is leading the nation in workforce training,” said in a statement. “For many companies, this program is a major factor in choosing to invest in Virginia, because it provides tailored training that equips employees with the right skills from day one. More Virginians are stepping into the workforce and we’re making sure they are prepared to seize the incredible opportunities available in the commonwealth.”

The talent accelerator program’s latest recognition comes on the heels of also being ranked No. 1 in the nation in the annual Business Facilities Rankings Report for the third consecutive year.

“By collaborating directly with companies to provide fully tailored recruitment and training solutions, we give employers the certainty to grow and thrive in every region of the commonwealth,” said President and Jason El Koubi in a statement. “Area Development’s acknowledgement of the Talent Accelerator affirms the program’s impact and showcases the dedication of our team to making Virginia the premier destination for business.”

Launched in 2019, the Virginia Talent Accelerator Program was created by the VEDP in collaboration with the . Since its launch, it has helped secure more than 17,000 jobs across the state.

Hillsville manufacturer to close, leaving 68 out of work

SUMMARY:

  • to close facility Oct. 9
  • 68 workers will lose jobs Oct. 24
  • Rising energy costs cited as reason for shuttering

Parkdale, a manufacturer that bills itself as one of the world’s largest providers of spun yarns, plans to close its Hillsville facility, with 68 employees losing their jobs by Oct. 24, according to a notice sent to the state in compliance with the Worker Adjustment and Retraining Notification Act.

The facility will close Oct. 9 “as a result of the declining economic environment created by rapidly rising energy costs,” which created “an unsustainable business model,” Karen Menting, vice president of human resources for Parkdale, wrote in a letter to Virginia Works, also known as the Virginia Department of and Advancement.

Parkdale did not respond to a request for comment. Carroll County Administrator Michael Watson confirmed the Wednesday.

On Oct. 9, 2023, Parkdale closed three of four Carroll County facilities, according to news reports. That time, 326 employees lost their jobs.

For July, Carroll County had a 4.2% rate, a historically low figure. “So, a lot of them, they’ll be able to find jobs within the area,” Watson said of the laid-off Parkdale workers.

In February, U.K. business development firm Oasthouse Ventures, which specializes in environmentally sustainable endeavors, announced plans to invest $104.8 million to build its first U.S.-based controlled environment agriculture operation in Carroll, a project expected to create 118 jobs initially. The venture, which now goes by the name Pluck’d, expects to begin harvesting tomatoes at a 65-acre sustainable greenhouse in January, according to the company website.

Watson said he has not been told what Parkdale plans to do with its facilities.

“It’s about a million dollars’ worth of tax revenue to the county that we no longer will collect,” he said. “It’s a pretty good hit to [the county] budget.”

Founded in 1916, Parkdale is headquartered in Gastonia, North Carolina. The company purchased U.S. Cotton in 2008 and has facilities in the United States, Mexico and South America.

15 Virginia schools make U.S. News’ 2026 universities list

 

SUMMARY:

  • 15 Va. schools made U.S. News and World Report’s 2026 Best National list
  • U.Va. was the highest-ranked Virginia school on the list
  • 16 Va. schools made the Best National Liberal Arts Colleges list, led by

Fifteen Virginia schools ranked on the U.S. News & World Report’s 2026 Best National Universities list released Tuesday. Multiple Virginia schools were noted on other from the media company, including 16 on the Best National Liberal Arts Colleges list.

The led Virginia schools in the national universities rankings for at least the sixth consecutive year, although it dropped from No. 24 to No. 26. It tied with the University of North Carolina at Chapel Hill.

For U.S. News & World Report’s lists, researchers evaluated more than 1,500 using up to 17 measures of academic quality and graduate success for its national universities list and 13 indicators for the national liberal arts colleges list. Measures include graduation rates, first-year retention rates, peer assessment and other data.

Here are the 15 Virginia universities on the 2026 Best National Universities list:

  • No. 26 U.Va. (tie)
  • No. 51 (tie)
  • No. 51 (tie)
  • No. 117 George Mason University (tie)
  • No. 139 Virginia Commonwealth University (tie)
  • No. 151 James Madison University (tie)
  • No. 273 (tie)
  • No. 273 Marymount University (tie)
  • No. 293 Old Dominion University (tie)
  • No. 301 Shenandoah University (tie)
  • No. 329 Radford University (tie)
  • No. 329 University of Lynchburg (tie)
  • No. 373 Regent University (tie)
  • No. 384 Mary Baldwin University (tie)
  • No. 395-434 Liberty University

The University of Virginia tied for fourth on U.S. News & World Report’s Top Public Schools list, maintaining its ranking from last year, and tied with UNC Chapel Hill.

“U.Va. continues to offer a world-class education that provides exceptional value and return on investment for our graduates,” Paul Mahoney, U.Va.’s interim president, said in a statement.

Virginia Tech and William & Mary tied for 21st in the top public schools rankings. George Mason University was No. 57, tied with Arizona State University, Iowa State University of Science and Technology, San Diego State University, University of Central Florida and University of New Hampshire.

Virginia Commonwealth University tied with California State University, Fullerton, for No. 72, and James Madison University made No. 79, tying with Colorado State University, University of Massachusetts Lowell, University of Rhode Island and University of Utah.

Old Dominion University ranked No. 159 (tied with Bowling Green State University, University of Puerto Rico, Rio Piedras Campus, University of Toledo and Western Michigan University), and Radford University was 178th and tied with eight schools.

Four Virginia schools made U.S. News & World Report’s Historically Black Colleges and Universities list. Hampton University ranked No. 7 again this year. Virginia State University tied with Bowie State University in Maryland for 11th, a jump from 23rd last year. Norfolk State University was No. 26, while Virginia Union University tied for the 43rd slot. VUU tied with Southern University and A&M College in Louisiana.

Sixteen Virginia colleges made the Best National Liberal Arts Colleges list:

  • No. 21 Washington and Lee University
  • No. 22 University of Richmond (tie)
  • No. 65 Virginia Military Institute (tie)
  • No. 96 Randolph-Macon College (tie)
  • No. 107 Hampden-Sydney College (tie)
  • No. 107 Patrick Henry College (tie)
  • No. 126 Roanoke College (tie)
  • No. 131 University of Mary Washington (tie)
  • No. 135 Hollins University (tie)
  • No. 156 Randolph College (tie)
  • No. 164 Sweet Briar College (tie)
  • No. 167 Bridgewater College (tie)
  • No. 167 University of Virginia’s College at Wise (tie)
  • No. 178 Virginia Wesleyan University (tie)
  • No. 183-201 Southern Virginia University
  • No. 183-201 Virginia Union University

Redhorse taps new CEO

Arlington County and data science service provider is promoting its president, , to .

Redhorse serves federal agencies, the U.S. (also known as the Department of War), homeland security and the intelligence community, providing data insights and cyber analytics. The company leverages artificial intelligence and helps agencies integrate digital technology into their business.

In a Monday LinkedIn post announcing the promotion, Redhorse said Klemm has more than 20 years of experience in national security, data exploitation, artificial intelligence and machine learning. Klemm joined Redhorse in 2022 as chief delivery officer, and became its president in January, following the retirement of previous Redhorse CEO John Zangardi.

“The demand for trusted partners who can apply advanced data and AI technologies to mission challenges has never been greater,” Redhorse Founder and Chairman David Inmon said in the LinkedIn post. “Noah’s experience leading complex organizations and executing growth strategies makes him the right leader for Redhorse’s next phase.”

Before Redhorse, Klemm spent more than two decades at Novetta, which was acquired by Accenture Federal Services in 2021. He has a bachelor’s degree in international affairs and international politics from James Madison University.

Founded in 2008, Redhorse has between 201-500 employees, according to its company LinkedIn profile.

Trump administration rehires hundreds of federal employees laid off by DOGE

Summary

  • Hundreds of laid-off federal workers offered
  • Employees must decide by week’s end on return offers
  • Recalled staff to report back on Oct. 6
  • Rep. questions cost savings from cuts

Hundreds of who lost their jobs in Elon Musk’s cost-cutting blitz are being asked to return to work.

The General Services Administration has given the employees — who managed government workspaces — until the end of the week to accept or decline reinstatement, according to an internal memo obtained by The Associated Press. Those who accept must report for duty on Oct. 6 after what amounts to a seven-month paid vacation, during which time the in some cases racked up high costs — passed along to taxpayers — to stay in dozens of properties whose leases it had slated for termination or were allowed to expire.

“Ultimately, the outcome was the agency was left broken and understaffed,” said Chad Becker, a former GSA real estate official. “They didn’t have the people they needed to carry out basic functions.”

Becker, who represents owners with government leases at Arco Real Estate Solutions, said GSA has been in a “triage mode” for months. He said the sudden reversal of the downsizing reflects how Musk and his Department of Government Efficiency had gone too far, too fast.

Rehiring of purged federal employees

GSA was established in the 1940s to centralize the acquisition and management of thousands of federal workplaces. Its return to work request mirrors rehiring efforts at in several agencies targeted by . Last month, the IRS said it would allow some employees who took a resignation offer to remain on the job. The Labor Department has also brought back some employees who took buyouts, while the National Park Service earlier reinstated a number of purged employees.

Critical to the work of such agencies is the GSA, which manages many of the buildings. Starting in March, thousands of GSA employees left the agency as part of programs that encouraged them to resign or take early retirement. Hundreds of others — those subject to the recall notice — were dismissed as part of an aggressive push to reduce the size of the federal workforce. Though those employees did not show up for work, some continue to get paid.

GSA representatives didn’t respond to detailed questions about the return-to-work notice, which the agency issued Friday. They also declined to discuss the agency’s headcount, staffing decisions or the potential cost overruns generated by reversing its plans to terminate leases.

“GSA’s leadership team has reviewed workforce actions and is making adjustments in the best interest of the customer agencies we serve and the American taxpayers,” an agency spokesman said in an email.

Democrats have assailed the ‘s indiscriminate approach to slashing costs and jobs. Rep. Greg Stanton of Arizona, the top Democrat on the subcommittee overseeing the GSA, told AP there is no evidence that reductions at the agency “delivered any savings.”

“It’s created costly confusion while undermining the very services taxpayers depend on,” he said.

DOGE identified the agency, which had about 12,000 employees at the start of the Trump administration, as a chief target of its campaign to reduce fraud, waste and abuse in the federal government.

A small cohort of Musk’s trusted aides embedded in GSA’s headquarters, sometimes sleeping on cots on the agency’s sixth floor, and pursued plans to abruptly cancel nearly half of the 7,500 leases in the federal portfolio. DOGE also wanted GSA to sell hundreds of federally owned buildings with the goal of generating billions in savings.

GSA started by sending more than 800 lease cancellation notices to landlords, in many cases without informing the government tenants. The agency also published a list of hundreds of government buildings that were targeted for sale.

DOGE’s massive produced little savings

Pushback to GSA’s dumping of its portfolio was swift, and both initiatives have been dialed back. More than 480 leases slated for termination by DOGE have since been spared. Those leases were for offices scattered around the country that are occupied by such agencies as the IRS, Social Security Administration and Food and Drug Administration.

DOGE’s “Wall of Receipts,” which once boasted that the lease cancellations alone would save nearly $460 million, has since reduced that estimate to $140 million by the end of July, according to Becker, the former GSA real estate official.

Meanwhile, GSA embarked on massive job cuts. The administration slashed GSA’s headquarters staff by 79%, its portfolio managers by 65% and facilities managers by 35%, according to a federal official briefed on the situation. The official, who was not authorized to speak to the media, provided the statistics on condition of anonymity.

As a result of the internal turmoil, 131 leases expired without the government actually vacating the properties, the official said. The situation has exposed the agencies to steep fees because property owners have not been able to rent out those spaces to other tenants.

The public may soon get a clearer picture of what transpired at the agency.

The Government Accountability Office, an independent congressional watchdog, is examining the GSA’s management of its workforce, lease terminations and planned building disposals and expects to issue findings in the coming months, said David Marroni, a senior GAO official.