GAO finds funding gaps hinder FASTA property disposals as Board winds down

The Government Accountability Office reports that limited congressional appropriations to the Asset Proceeds and Space Management Fund have constrained the General Services Administration's ability to cover disposal costs for federal civilian real property under the Federal Assets Sale and Transfer Act (FASTA) as the Public Buildings Reform Board prepares to cease operations in December 2026.

FASTA created a temporary process to accelerate the sale of surplus federal buildings. The Board recommends properties for disposal, and GSA implements the sales. The statute also established a fund to offset disposal expenses, subject to annual congressional appropriation.

As of August 2026, 14 of the 23 properties recommended and approved by the Board have been sold, generating about $576 million in proceeds. Most of those sales stem from the 2019 round, while the timeline for completing disposals from the 2025 round remains uncertain.

Congress appropriated $90 million to the fund from 2016 through 2022, but provided no FASTA appropriations for 2023-2025. In 2026, Congress appropriated an additional about $143 million in FASTA proceeds, leaving GSA unable to access the full amount of sales proceeds. Agency officials said the funding uncertainty hampers planning and budgeting, and relocating federal tenants continues to be a challenge.

The Board's final round is expected before it ceases operations in December 2026. Stakeholders have suggested that extending FASTA beyond that date should include broader access to sales proceeds to improve future disposal funding.