The Trump administration’s leadership at the General Services Administration (GSA) is pushing forward with a bold plan to slash the agency’s total budget by 50%, with importent reductions in staffing and operational costs. This move aligns with President Trump’s broader directives to streamline the federal workforce and eliminate redundancies across government agencies.
A Drastic Budget Cut Plan
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GSA leaders have instructed staff to prepare plans to reduce total spending across all programs and personnel by half. These plans are due to Acting GSA Administrator Stephen Ehikian by Friday, February 6. During a town hall meeting on January 31, the Federal Acquisition Service (FAS) informed employees that senior leadership is actively developing strategies to achieve this goal. Potential areas for cuts include personnel, payroll, and contracts.
Ehikian emphasized the seriousness of the situation in an email to employees, stating, “Per President Trump’s directives concerning the federal workforce, there will be a multi-step approach to reducing the size of the federal workforce and consolidating redundant operations.” He warned employees that those who do not accept the Office of Personnel Management’s “deferred resignation offer” should expect further changes, including a performance-based evaluation system and office consolidations.
Reduction in Force and Return-to-Office Mandate
A nonvoluntary Reduction in Force (RIF) is expected shortly after the February 6 deadline. Additionally, GSA’s return-to-office mandate will take effect on March 3, requiring employees to work five days per week at a federal facility. This move is part of a broader effort to centralize functions and improve efficiency.
The Elimination of 18F
In a surprising development, Elon Musk, head of the White House’s Department of Government Efficiency, announced on X that GSA’s 18F—a team of designers, software engineers, and product designers—has been “deleted.” A source familiar with the situation revealed that 18F engineers have deleted large portions of internal code under the direction of Thomas Shedd, director of GSA’s Technology Transformation Services.
Real Estate and Space Utilization
Michael Peters, commissioner of GSA’s Public Buildings Service, outlined plans to reduce non-Defense Department federal building space—both owned and leased—by at least 50%.“This reduction will come from more efficient space utilization,as well as an overall downsizing of the federal workforce,” Peters wrote. He added that the lower operating and maintenance costs will enable GSA to deliver higher-quality work environments over a smaller footprint.
Peters also highlighted a “gross excess of space” in GSA’s real estate portfolio and significant levels of deferred maintenance.The agency plans to transition from an “agency-centric model of space utilization” to a “whole of government” approach, assessing requirements and availability across agencies.
Key Points at a Glance
| Aspect | Details |
|—————————–|—————————————————————————–|
| Budget Cut | GSA aims to reduce total spending by 50%. |
| Staffing Reductions | Nonvoluntary RIF expected after February 6. |
| Return-to-Office Mandate| Effective March 3, requiring five days per week in federal facilities. |
| 18F Elimination | Team deleted; internal code removed under direction of Thomas Shedd. |
| Real Estate Reduction | Non-DoD federal building space to be cut by 50%. |
Looking Ahead
The Trump administration’s aggressive approach to reducing the federal workforce and consolidating operations is poised to reshape the GSA significantly. As Ehikian noted, “GSA is going to be a substantially smaller association.” employees and stakeholders are bracing for the impact of these sweeping changes,which aim to create a leaner,more efficient federal government.
For more insights into the Trump administration’s federal workforce strategies, explore Brookings’ analysis.
GSA Faces Major restructuring and Downsizing Under new Plans
The General Services Administration (GSA) is undergoing a significant transformation, with plans to downsize its workforce, consolidate operations, and restructure its Public Buildings Service (PBS). These changes, announced by GSA Administrator Robin Peters, aim to streamline the agency’s operations and set an example for other federal agencies. though, the proposed cuts have raised concerns about the GSA’s ability to fulfill its mission without impacting customer agencies.
A Leaner GSA: Downsizing and Consolidation
Peters revealed that the majority of the workforce reductions would come from the Washington, D.C. metro area, including the relocation of GSA’s headquarters at 1800 F St. NW. The restructuring of PBS will focus on consolidating space, reducing support staff, and transitioning away from an outdated model of 11 regional offices across the country.
“In the immediate future, we will effectuate a restructuring along functional reporting lines rather than the current matrix of regions and functions,” Peters stated. “This more streamlined organization will allow the majority of our remaining personnel the flexibility to provide service across the entire geographic footprint in response to surges in demand and provide improved resource utilization and efficiency.”
While the plans are still not fully formed, Peters emphasized the need for hard work and difficult decisions to “right size PBS.” He urged employees to join him in this mission to transform how PBS functions.
concerns Over Mission-Critical Infrastructure
The proposed cuts have sparked concerns about the GSA’s ability to maintain its role as the federal government’s landlord, tech hub, and contracting nerve center. A former GSA official described the agency as a “force-multiplier for really good cross-governmental efficiencies.”
“It is indeed a prerogative of the president to set the budgets, to make sure that the government is functioning in a reflection of the way they want. I’m not trying to take that away from the administration. But to come in and just do mass layoffs and without really understanding the potential consequences — there’s mission-critical infrastructure run out of GSA,” the official said.
GSA’s Unique Funding Model
Unlike many federal agencies, much of GSA’s funding does not come from congressional appropriations. Instead, it operates on a working capital fund, especially in its IT division, which is responsive to the buyers of technology within the agency.
“It’s mostly not an appropriated agency. Even the IT shop at GSA runs off a working capital fund, which is responsive to the buyers of tech within the agency,” the former official explained. “If there is a place in government that is run like a company, it is indeed GSA.So to dismiss it, and say it’s ‘deleted,’ you’re either missing the point or there’s something else at play here.”
Key Changes at GSA
| Aspect | Details |
|————————–|—————————————————————————–|
| Workforce Reductions | Majority from the Washington, D.C.metro area, including HQ relocation. |
| PBS Restructuring | Shift from 11 regional offices to functional reporting lines. |
| Funding Model | Primarily non-appropriated, with IT division running on a working capital fund. |
| Goals | Streamline operations, improve efficiency, and set an example for other agencies. |
Looking Ahead
As the GSA moves forward with its restructuring plans, the agency faces the challenge of balancing efficiency with its mission-critical responsibilities. The proposed changes underscore the administration’s focus on reducing federal spending,but they also highlight the unique role the GSA plays in supporting government operations.
For more updates on federal agency restructuring, visit Federal News Network.
What are your thoughts on the GSA’s restructuring plans? Share your insights in the comments below.
GSA Faces Major Restructuring and Downsizing Under New Plans
The General Services Management (GSA) is undergoing a notable conversion, wiht plans to downsize its workforce, consolidate operations, and restructure its Public Buildings Service (PBS).These changes, announced by GSA Administrator Robin Peters, aim to streamline the agency’s operations and set an example for other federal agencies. However, the proposed cuts have raised concerns about the GSA’s ability to fulfill its mission without impacting customer agencies.
A Leaner GSA: Downsizing and Consolidation
Peters revealed that the majority of the workforce reductions would come from the Washington, D.C. metro area, including the relocation of GSA’s headquarters at 1800 F St. NW. The restructuring of PBS will focus on consolidating space, reducing support staff, and transitioning away from an outdated model of 11 regional offices across the country.
“In the immediate future, we will effectuate a restructuring along functional reporting lines rather than the current matrix of regions and functions,” Peters stated. “This more streamlined organization will allow the majority of our remaining personnel the flexibility to provide service across the entire geographic footprint in response to surges in demand and provide improved resource utilization and efficiency.”
While the plans are still not fully formed, Peters emphasized the need for hard work and difficult decisions to “right size PBS.” He urged employees to join him in this mission to transform how PBS functions.
Concerns Over Mission-Critical Infrastructure
The proposed cuts have sparked concerns about the GSA’s ability to maintain its role as the federal government’s landlord, tech hub, and contracting nerve center. A former GSA official described the agency as a “force-multiplier for really good cross-governmental efficiencies.”
“It is indeed indeed a prerogative of the president to set the budgets, to make sure that the government is functioning in a reflection of the way they want.I’m not trying to take that away from the administration. But to come in and just do mass layoffs and without really understanding the potential consequences — there’s mission-critical infrastructure run out of GSA,” the official said.
GSA’s Unique Funding Model
Unlike many federal agencies, much of GSA’s funding does not come from congressional appropriations. Instead, it operates on a working capital fund, especially in its IT division, which is responsive to the buyers of technology within the agency.
“It’s mostly not an appropriated agency. Even the IT shop at GSA runs off a working capital fund, which is responsive to the buyers of tech within the agency,” the former official explained. “If there is a place in government that is run like a company, it is indeed GSA. So to dismiss it, and say it’s ‘deleted,’ you’re either missing the point or there’s something else at play here.”
Key Changes at GSA
| Aspect | Details |
|---|---|
| Workforce Reductions | Majority from the Washington, D.C. metro area, including HQ relocation. |
| PBS Restructuring | Shift from 11 regional offices to functional reporting lines. |
| Funding Model | Primarily non-appropriated, with IT division running on a working capital fund. |
| Goals | Streamline operations, improve efficiency, and set an example for other agencies. |
Looking Ahead
As the GSA moves forward with its restructuring plans,the agency faces the challenge of balancing efficiency with its mission-critical responsibilities. The proposed changes underscore the administration’s focus on reducing federal spending, but they also highlight the unique role the GSA plays in supporting government operations.
For more updates on federal agency restructuring, visit Federal News Network.
What are your thoughts on the GSA’s restructuring plans? Share your insights in the comments below.
