Senate Passes Peters Bipartisan Bill to Create Leasing Program for Underutilized Space Held by Federal Agencies

WASHINGTON, D.C. – The U.S. Senate passed bipartisan legislation authored by U.S. Senator Gary Peters (MI), Chairman of the Homeland Security and Governmental Affairs Committee, to create a program that allows federal agencies to lease underutilized properties with approval from the Administrator of the General Services Administration (GSA), and to use the rent payments to help fund capital projects and facilities maintenance. Currently, many federal agencies hold underused property that they need and cannot sell – but could be fully utilized by other public or private entities.  

“The federal government has a duty to limit wasteful spending and use taxpayer dollars effectively. By leasing underused space at federal properties, we can ensure the government is considering every opportunity to generate additional revenue,” said Senator Peters. “This commonsense, bipartisan bill will help save taxpayer dollars and help agencies reduce costs.” 

Federal agencies routinely hold property that could be used more effectively by other public and private entities. For example, an agency campus could have extra space they cannot sell, but could provide an optimal home for solar panels. Some agencies could also have space and equipment they need part time, but could otherwise be well-suited to university or private partnerships. Peters’ bipartisan legislation would allow federal agencies to explore ways to fully utilize their property, and generate revenue to fund other projects such as long-needed maintenance, revitalization, and other improvements, as well as deficit reduction. 

The Saving Money and Accelerating Repairs Through Leasing (SMART Leasing) Act would create a pilot program to allow federal agencies to sublease underutilized non-excess real property and related personal property to any person or entity at fair market value, including another department or agency of the federal government or an entity of a state or local government. The legislation requires the GSA Administrator to certify that any lease will not have a negative impact on the mission of the federal agencies, and that the terms and conditions of the lease protect the interests of the country. The bill limits the number of leases to six per year for the first two years after enactment to determine the impacts of this program, at which point GSA can advise Congress on whether the program should be extended or expanded. The legislation would provide 50 percent of revenue generated from leases to capital improvements and maintenance, and the other 50 percent would go towards reducing the deficit. The legislation was modeled on a similar program used by the National Aeronautics and Space Administration (NASA) – which has generated millions of dollars in revenue for the agency to use on capital projects and facilities maintenance.

As Chairman of the Homeland Security and Governmental Affairs Committee, Peters has led several efforts to save taxpayer dollars. His bipartisan bill directing the General Services Administration (GSA) to install the most cost effective and energy-efficient lighting in public buildings was signed into law last Congress. Peters’ bipartisan legislation to save taxpayer dollars by ensuring federal property and assets are disaster resilient was also signed into law. 

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