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One year into President Donald Trump’s second term, the U.S. General Services Administration (GSA) reports achieving over $60 billion in federal contract savings, marking significant progress in the administration’s government efficiency initiatives.
The GSA announced Tuesday that its efforts to reduce federal real estate holdings, streamline procurement processes, and modernize government operations have yielded substantial taxpayer savings since January 2025. These initiatives align with the administration’s Department of Government Efficiency (DOGE) program, which aims to cut bureaucratic waste and improve government performance.
Over the past 12 months, the agency has disposed of 90 federal properties, eliminating more than 3 million square feet from its portfolio. This reduction has avoided an estimated $415 million in repair and operating costs. Property sales generated an additional $182 million in revenue, while renegotiated leases and portfolio reductions prevented approximately $730 million in future expenditures.
The agency isn’t stopping there. GSA officials have identified 45 additional high-cost, underutilized properties for accelerated sale, which could save taxpayers more than $3 billion in repairs and operational expenses once completed. As the manager of over 360 million rentable square feet nationwide, the GSA’s portfolio decisions have far-reaching financial implications.
“Under President Trump’s leadership, we’re delivering on our promise to create a leaner, smarter, and more accountable government,” GSA Administrator Edward C. Forst said in a statement. “GSA is right-sizing our federal real estate portfolio, streamlining operations, and using the buying power of the United States government to get the best deals in procurement for American taxpayers.”
Federal contracting has undergone significant transformation as well. Working in collaboration with the Office of Management and Budget, the Department of Defense, and NASA, the GSA completed what it calls a “historic rewrite” of the Federal Acquisition Regulation (FAR), the comprehensive rulebook governing federal purchasing.
This rewrite eliminated approximately one-quarter of the FAR, cutting 484 pages and 230,000 words while removing more than 2,700 “shall” and “must” mandates that officials say previously slowed procurement processes and discouraged competition. The agency also canceled over $500 million in what it described as unnecessary or underperforming contracts and reduced the federal vehicle fleet by more than 1,000 vehicles.
Small businesses have been a focal point of these reforms. The GSA reports reducing the Federal Management Regulation by approximately 72% and streamlining the Federal Travel Regulation by roughly 50%, while eliminating 84 outdated policy bulletins from the Federal Register. For small businesses specifically, compliance burdens have reportedly been cut by 70%, and vendor onboarding—which previously took up to 30 days—has been reduced to same-day approval in many cases.
According to agency projections, these regulatory changes will save approximately $900 million over the next decade.
The federal government has also modernized payment systems and citizen access to federal services. The GSA highlighted the expanded use of Login.gov as part of broader efforts to combat improper federal payments, an issue estimated to cost taxpayers roughly $200 billion annually. The system now blocks thousands of suspected fraudulent identity verification attempts daily and has upgraded major partner agencies to enhanced identity assurance protocols, including biometric facial matching, to better protect access to federal benefits and services.
Technological innovation has played a key role in these efficiency gains. The GSA pointed to expanded use of artificial intelligence and automation to modernize federal operations without increasing the size of government. The agency has developed a new USAi platform to support federal AI testing and deployment, allowing agencies to evaluate and adopt emerging technologies while maintaining security and oversight.
This technology-forward approach comes as the administration has been actively pursuing partnerships with major AI companies to bring cutting-edge tools into government operations, a strategy that represents a significant shift in how federal agencies approach technological modernization.
In its announcement, the GSA expressed confidence that these first-year accomplishments align with Trump’s vision of streamlined government and “set the tone for a results-driven second term.”
“The results speak for themselves,” Forst stated in the agency’s press release.
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14 Comments
It’s encouraging to see the government finding ways to cut costs and improve efficiency. I’m curious to learn more about how these changes will impact the mining, energy, and commodities sectors.
Disposing of underutilized properties and renegotiating leases are smart moves, but it will be important to ensure that critical government functions and oversight in these industries are not compromised.
$60 billion in savings is a substantial amount. I’m curious to learn more about the specific initiatives that led to these reductions in federal expenditures.
It will be important to ensure that these cuts don’t compromise critical government functions, especially those related to mining, energy, and natural resource oversight.
Streamlining government operations is a worthy goal, but it’s important to ensure that critical oversight and support for the mining, energy, and commodities industries are maintained.
The revenue generated from property sales is a nice bonus, but the long-term savings from reduced operating costs and future expenditures are likely more impactful.
The disposal of underutilized federal properties is an interesting approach to reducing government costs. I wonder if any of these properties could be repurposed for mining, energy, or related industrial uses.
Streamlining procurement and modernizing operations are also important steps. Curious to see how these changes will impact the various industries the government interacts with.
Interesting to see the government finding ways to reduce its real estate footprint and cut costs. I wonder if this will impact any federal agencies or services in the mining/energy sectors.
The focus on streamlining operations and improving efficiency is a positive step. Curious to see how the property disposals and lease renegotiations will impact the mining and energy industries.
Reducing bureaucratic waste and improving government performance are laudable goals. It will be important to ensure these initiatives don’t negatively impact vital services or oversight in the mining and energy sectors.
The revenue generated from property sales is a nice bonus, but the long-term savings from reduced operating costs and future expenditures are likely more impactful.
The Department of Government Efficiency (DOGE) program seems to be yielding some impressive results. I’m curious to learn more about how these changes will affect the mining, commodities, and energy industries.
Disposing of underutilized properties and renegotiating leases are smart ways to cut costs. Hopefully, these efforts won’t compromise important regulatory or support functions in key sectors.