President Trump said a Federal Reserve inspector general report found "project
management deficiencies" in the Fed’s Washington DC headquarters renovation and
accused the project of severe cost overruns. Trump cited the report saying final
costs will be at least $2.5 billion and could rise to $3.5–4.0 billion, and said
the project has already exceeded the budget by several hundred million dollars.
The report, Trump said, shows the Federal Reserve Board did not receive a
construction manager cost estimate until January 2026 — roughly 3½ years after
work began — despite the award of more than $2 billion in construction
contracts. As of July 2026, more than four years into construction, the Fed had
not set a guaranteed maximum price, leaving the final cost undetermined and risk
unattributed to the construction manager, the report found. Trump asked Attorney
General Todd Blanch to review the report and decide next steps, and renewed his
call for Fed Chair Powell to resign, saying the government should consider legal
action if Powell refuses.
