Overview
- Jerome Powell said the Justice Department served subpoenas and warned a criminal indictment could follow tied to his Senate testimony on the renovations.
- OMB director Russell Vought has called the overrun "$700 million and counting," with Fed budget documents showing an increase from $1.88 billion in 2024 to $2.46 billion.
- The work covers the Eccles headquarters and the 1951 Constitution Avenue building transferred to the Fed in 2018, with a planned third-building renovation dropped to save about $510 million.
- Cited drivers of higher costs include preservation requirements, higher labor and materials prices, and unforeseen lead contamination and asbestos, while the Fed denies features such as VIP dining rooms or governors-only elevators.
- The Fed says it controls capital spending by law, the Fed OIG has begun a fresh review with ongoing monthly reporting, and planning bodies were consulted throughout the project.