The rehab of the Eccles building is ‘the most expensive project in D.C. history,’ according to the director of the National Economic Council.
The Federal Reserve updated its frequently asked questions section in an apparent response to the Trump administration’s criticism of its multi-billion-dollar building renovation plan amid brewing tensions over interest rates.
The Federal Reserve is undertaking a major rehaul of facilities and structural work of the Marriner S. Eccles Building, with current cost estimates at around $2.5 billion, according to Office of Management and Budget (OMB) Director Russ Vought.
The OMB, which oversees federal budgetary expenses, has criticized the project. Vought called it an “ostentatious overhaul” in a July 10 post on social media platform X. A letter addressed to Federal Reserve Chair Jerome Powell was attached to the post.
“While continuing to run a deficit since FY23 (the first time in the Fed’s history), the Fed is way over budget on the renovation of its headquarters,” Vought said. “Now up to $2.5 billion, roughly $700 million over its initial cost.”
Kevin Hassett, director of the National Economic Council, was asked in a media interview about Vought’s criticism and whether it was grounds for firing Powell.
“This is the most expensive project in D.C. history, $2.5 billion with a $700 million cost overrun,” Hassett said. “To put that in perspective, the cost overrun for this Federal Reserve project is about the same size as the second biggest building overhaul in American history, which was the FBI building. And so, the Fed has a lot to answer for.”
Amid rising criticisms, the Fed updated its website FAQ section, justifying the renovation expenses.
“Major systems in both buildings were obsolete and in need of replacement for health and safety reasons,” the website states. “They included plumbing, electrical, fire suppression, water connections, and HVAC. Some systems dated to the construction of the buildings in the 1930s.”
The project will remove hazardous materials such as asbestos and lead and will bring the buildings up to modern code, while interior spaces will be made more accessible for people with disabilities, according to the Fed.
The agency stands to save costs on leasing spaces in commercial office buildings once the renovation is completed, states a response to a question about costs.
“This project allows the Board to consolidate its operations and reduce expenses on leased space elsewhere,” it states.
