Federal Judge allows DOGE to take over $500 Million USIP headquarters

 April 3, 2025

In a significant ruling, US District Judge Beryl Howell affirmed the transfer of the US Institute of Peace (USIP) headquarters to the General Services Administration (GSA), despite legal challenges.

Wired reported that this decision follows the controversial dismissal of USIP's board by the Department of Government Efficiency (DOGE), marking a major institutional shake-up under the Trump administration.

The drama began to unfold when the Trump administration, on March 14, dismissed all 10 voting members of USIP’s board. This dramatic action was part of broader efforts by the Department of Government Efficiency to overhaul the institution.

USIP staff resisted initially, denying access to DOGE employees. However, access was gained shortly after using a key provided by a former security contractor.

New Leadership Installs Amid Institutional Upheaval

Amidst the administrative chaos, Kenneth Jackson was initially appointed as the president of USIP by DOGE. His tenure was short-lived as Nate Cavanaugh replaced him on March 25.

In the week that followed, a sweeping series of terminations was issued to most of the USIP staff, further intensifying the internal strife.

The legal entanglement took a public turn when former USIP staff filed a lawsuit against various defendants, including DOGE and former President Donald Trump. The lawsuit, which became public on Monday, disclosed that the headquarters' transfer had been executed at no cost—a decision that would soon lead to judicial review.

By Saturday, just days before a hearing, the USIP headquarters had already been transferred to the GSA. Judge Howell's Tuesday ruling noted that the transaction's completion rendered any requested injunctions moot, as the property had already changed hands.

The building, valued aat round $500 million, was central to the legal dispute and questions about USIP's future operational capacity.

USIP, an independent entity funded by Congress, found its property and operations under scrutiny. Notably, the USIP property, built with a mix of private donations and public funds, contradicted government claims that it was a wholly-owned government corporation.

During the court proceedings, Judge Howell expressed that the ambiguity around USIP's legal status as either an 'independent establishment' or a 'government corporation' complicated the matter.

The physical move of USIP to GSA ownership was predicated on the latter's need for additional governmental space. Michael Peters from GSA commented on the practicality of the transfer, citing federal budget constraints as a barrier to purchasing the property at market value.

The Reaction to the Headquarters Transfer

Responses to the ruling were mixed. Nate Cavanaugh argued that the transfer served the interests of USIP, the federal government, and the nation.

Meanwhile, George Foote, representing a differing view, likened the situation to a theft, saying that legal intervention became ineffectual since the transfer was already complete.

As the building's future remains under GSA control, further complications could arise. Foote speculated that potential sales or changes in property title could hinder efforts to reclaim or restore the building's original status.

His concerns depict a scenario where the legal and operational complexities could extend well beyond the current disputes.

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