Full Breakdown
Trump Pushes Powell to Resign Over Fed Renovation Cost Overruns
By Drooid · · How we work
The Inspector General’s Findings and Project Costs
On September 30 the Federal Reserve’s Office of Inspector General released a 120-page review of the renovation of the Fed’s two historic Washington, D.C., buildings. The report said the budget rose from the 2020 estimate of roughly $1.3 billion to about $2.4 billion, an increase of roughly $1 billion. It cited “extensive management shortfalls,” including the Board’s failure to obtain a total cost estimate until after construction began and the lack of a guaranteed-maximum-price contract. The IG found no reasonable grounds to believe a violation of federal criminal law occurred and did not identify administrative misconduct.
Political Fallout
President Donald Trump seized on the overruns as a focal point for his campaign against former Fed Chair Jerome Powell, warning that, if Powell does not step down, the United States Government should sue him for “corruption or incompetence.” The controversy revived a Justice Department investigation that had been suspended after a federal judge blocked grand-jury subpoenas in early 2026.
Official Statements & Responses
- President Trump called the renovation “over budget in record numbers” and reiterated his demand for Powell’s resignation.
- Jerome Powell declined to comment on the IG report but said the investigation was a pretext to pressure the Fed on monetary policy and pledged to stay on the Board.
- Kevin Warsh, who succeeded Powell as Fed chair, said the Fed would adopt all IG recommendations, appoint an independent auditor, and have the General Services Administration serve as project executive.
- Todd Blanche was tasked by the president to review the IG findings; no public comment was recorded.
- Federal Reserve spokespersons declined to comment beyond Warsh’s letter.
Data & Statistics
- Initial 2020 budget estimate: $1.3 billion.
- Board-approved budget as of December 17, 2024: $2.46 billion.
- Reported cost at time of IG release: $2.4 billion.
- Line-item overruns: plumbing, heating, ventilation, and air-conditioning costs rose 223 %; construction costs rose by $960 million.
- The Fed paid $346 million for plumbing and air-conditioning, roughly triple the original estimate.
Criticism & Opposition
- Republican Senator Tim Scott (Chair of the Senate Banking Committee) called the overruns “egregious,” saying inflation does not excuse imprudent resource management and promising “rigorous oversight” of the Fed.
Conflicting Reports & Gaps
Sources differ on the exact total cost: the IG report cites $2.4 billion, Reuters notes a $2.46 billion budget as of December 2024, and other outlets reference a $2.5 billion figure. All agree the project exceeded the original $1.3 billion estimate.
Timeline
- 2020 – Initial estimate of about $1.3 billion.
- December 17, 2024 – Board-approved budget rises to $2.46 billion.
- July 24, 2025 – President Trump and then-Chair Powell tour the site.
- January 12, 2026 – Construction continues at the Eccles Building.
- September 30 – IG releases report finding no criminal wrongdoing.
- October 1, 2026 – Trump publicly demands Powell’s resignation and orders Attorney General Blanche to review the report.
The IG’s conclusions have defused the most serious legal accusations against Powell but left open a debate over governance and fiscal oversight of large-scale federal projects. The Fed’s next steps—implementation of corrective actions, independent auditing, and GSA oversight—will determine whether the renovation’s cost trajectory can be contained and whether political pressure on the central bank will subside.
