USDA Announces Disposal of the South Building and Relocation of FNS—But the Broader Reorganization Plans Remain Unknown

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    The U.S. Department of Agriculture (USDA) has officially begun what it calls a “right-sizing” of its operations, starting with two major moves in the National Capitol Region (NCR): the disposal of the USDA South Building in Washington, D.C., and the local relocation of the Food and Nutrition Service (FNS). While they have shared these immediate steps, USDA officials are keeping the broader reorganization plan tightly held for now.

     

     

    Secretary of Agriculture Brook Rollins, Deputy Secretary Stephen Vaden, Senator Joni Ernst (R-Iowa), and General Services Administration (GSA) Administrator Edward Forst addressed these developments during a February 25th press conference held outside the South Building in Washington, D.C. USDA also streamed the press conference via their YouTube Channel.

     

     

    Reorganization Within a Broader Vision

     

    Secretary Rollins reaffirmed the administration’s focus on fiscal restraint and government reform. According to Secretary Rollins, USDA’s workforce has expanded by 8% since the first Trump administration and employee salaries have risen by almost 15%, without a corresponding increase in services provided to key constituents. She explained USDA’s reorganization, first announced in July 2025, is guided by four core pillars:

        • Aligning USDA’s workforce size with available resources and agricultural priorities.

        • Bringing USDA operations closer to the citizens and producers they serve.

        • Eliminating unnecessary management layers and bureaucracy.

        • Consolidating redundant support functions across USDA.

      In line with its plans, Secretary Rollins announced USDA’s first step in the reorganization process to “right-size” its real estate footprint, as the government has become “too big, too bloated, and too disconnected from its citizens.”

       

      Scaling Down the NCR Footprint

       

      As the first publicly announced step in this process, USDA is turning over the South Building—once considered “the beating heart of the USDA”—to GSA. Today, over 80% of the South Building remains vacant despite last year’s return to office mandate. It carries an estimated $1.6 billion in delinquent maintenance costs and costs tens of millions of dollars annually to operate.

       

      GSA Administrator Forst confirmed that the South Building is GSA’s largest federal property liability but noted that the agency will work closely with USDA and other stakeholders to repurpose the property for potential economic benefit. The Jamie L. Whitten Building will remain under USDA control and operate independently once “delinked” from the South Building.

       

      Senator Ernst provided remarks and praised the decision as “the culmination of years of work” between USDA and GSA. She further emphasized USDA’s commitments to bring federal workers and decision-making closer to the agricultural communities they represent, especially in the Midwest and rural America.

      Deputy Secretary Vaden stated that every building the USDA has in the NCR fails the USE IT Act of 2023 minimum occupancy threshold of 60%. USDA aims to vacate the South Building by the end of 2026 fully. USDA expects to coordinate relocations to minimize disruptions for employees with school-aged children. Deputy Secretary Vader mentioned transitions to new hub locations should be completed by the start of the new school year.

       

      FNS on the Move

       

      Deputy Secretary Vaden disclosed during the press conference that USDA is also turning over to GSA its leased space in Alexandria, Virginia, that housed FNS. FNS employees will be moved locally to D.C. offices, specifically in the Yates Building and the George Washington Carver Center. FNS is the first of eight USDA mission areas being relocated, and USDA will be making “mission area-by-mission area” announcements in the weeks ahead for the remaining seven D.C.-based USDA agencies.

       

      What Comes Next

       

      While USDA has shared a few details about the next phases of its reorganization, the February 25th announcement underscores a clear trajectory toward leaner, regionally distributed operations. For now, USDA’s larger plans and how deeply they may reshape USDA’s structure remain closely held.

       

      About This Series


      This post is part of our USDA Reorganization Seriesa continuing analysis of the Department’s structural and policy reforms. Future installments will examine statutory frameworks, workforce implications, and compliance mechanisms as USDA proceeds with its multi-phase restructuring.

       

      References: Rollins, Vaden, and Forst Announce Disposal of Dilapidated USDA Facilities: USDA Official Press Release (February 25, 2026)

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