[Congressional Record Volume 172, Number 55 (Tuesday, March 24, 2026)]
[House]
[Pages H2650-H2651]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SMART SPACE ACT OF 2026
Mr. TAYLOR. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 7388) to direct the Administrator of General Services to
convene consultation meetings to identify alternative financing
solutions for the construction of new public buildings that will reduce
costs to the Federal Government, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 7388
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Smart Space Act of 2026''.
SEC. 2. PROJECT RECOMMENDATIONS.
(a) Meetings and Consultations.--Not later than 90 days
after the date of enactment of this Act, the Administrator of
General Services shall convene consultation meetings to
identify alternative financing solutions for the construction
or renovation of public buildings, or necessary work to
prepare such buildings for disposal that will reduce costs to
the Federal Government.
(b) Meetings.--In convening consultation meetings under
subsection (a), the Administrator shall include--
(1) experts related to private commercial real estate;
(2) experts related to Federal real estate; and
(3) if available, State, including the District of
Columbia, real estate experts experienced with leveraging
private financing for public buildings and facilities.
(c) Report and Recommendations.--Not later than 120 days
after the date of enactment of this Act, the Administrator
shall submit to the President--
(1) recommendations on types of public-private partnerships
and alternative financing methods best suited for meeting the
public building needs of the Federal Government; and
(2) a list of recommended projects related to public
buildings for which such methods should be used with details
on which methods and types of public-private partnerships are
recommended for each project.
(d) Recommended Project List.--In submitting a list of
recommended projects under subsection (c)(2), the
Administrator shall submit projects that the Administrator
determines--
(1) serve core missions of the Federal Government for which
maintaining the functions in federally owned space over the
long-term is critical;
(2) will result in either consolidations or relocations of
Federal departments or agencies out of costly, inefficient,
and underutilized space that the Administrator intends to
sell or dispose of once vacated; and
(3) with respect to standard office space, will result in
meeting a minimum building utilization of 60 percent or
greater as defined in section 2302 of the Thomas R. Carper
Water Resources Development Act of 2024 (40 U.S.C. 584 note).
(e) Transparency.--
(1) Report.--The Administrator shall submit the report
under subsection (c) to the Committee on Transportation and
Infrastructure in the House and the Committee on Environment
and Public Works in the Senate and make such report publicly
available on the website of the General Services
Administration.
(2) Timeline.--The Administrator of General Services shall
maintain on the website of the General Services
Administration information on the process under this Act,
including any timelines and milestones.
(3) Delays.--The Administrator shall report directly to the
President and Congress any delays with respect to the timing
and milestones described in paragraph (2).
(4) Meetings.--Meetings pursuant to subsection (a) shall be
noticed and open to the public and shall not be subject to
chapter 10 of title 5, United States Code.
(f) Definitions.--In this Act:
(1) Alternative financing; public-private partnership.--The
terms ``alternative financing'' and ``public-private
partnership'' may include--
(A) agreements that reflect an obligation by a non-Federal
entity to design, build, finance, operate, and maintain an
asset, or a combination thereof; and
(B) a ground-lease to a non-Federal party with a subsequent
lease back of the improvements.
(2) Public building.--The term ``public building'' has the
meaning given such term in section 3301 of title 40, United
States Code.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Ohio (Mr. Taylor) and the gentleman from Arizona (Mr. Stanton) each
will control 20 minutes.
The Chair recognizes the gentleman from Ohio.
General Leave
Mr. TAYLOR. Mr. Speaker, I ask unanimous consent that Members have 5
legislative days in which to revise and extend their remarks and insert
extraneous material into the Record on H.R. 7388, as amended.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Ohio?
There was no objection.
Mr. TAYLOR. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, H.R. 7388, the Smart Space Act of 2026, directs the
Administrator of General Services to consult with real estate experts
on how alternative financing and public-private partnerships can be
used for public building projects to reduce costs to the taxpayer.
Last year, the Thomas R. Carper Water Resources Development Act of
2024 was signed into law. That legislation included significant public
buildings reforms that have the potential to save billions of dollars
for taxpayers.
As the GSA and other executive agencies have implemented these
reforms to reduce costly space, a key challenge agencies have faced is
funding activities that may be needed before buildings can be sold and
agencies relocated to less expensive space.
In addition, recent hearings held by the Committee on Transportation
and Infrastructure, as well as reports by the Government Accountability
Office and the Public Buildings Reform Board, have revealed billions of
dollars in liabilities associated with our owned real estate assets due
to deferred maintenance accumulated over the years.
We need to identify new funding solutions to these problems that
don't rely on increasing taxpayer dollars for the space consolidation
efforts.
The Smart Space Act of 2026 directs the GSA, in consultation with
real estate experts, to recommend alternative financing solutions and
provide a list of projects for which those solutions would make sense.
This will provide the President and Congress with information on viable
options to address the challenge of acquiring the capital needed to
prepare buildings for sale and reduce the liability to the taxpayer.
Mr. Speaker, I thank the gentleman from Missouri (Mr. Burlison) for
his leadership on this important issue. I urge support of this
legislation, and I reserve the balance of my time.
{time} 1550
Mr. STANTON. I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 7388, the Smart Space Act, as
amended.
The General Services Administration's portfolio of owned buildings
are now, on average, over 52 years old, and many of the buildings have
not undergone any significant modernizations since they were
constructed.
In 2025, the GAO reported that GSA has a $6.1 billion deferred
maintenance and repair backlog.
In 2026, the Public Buildings Reform Board reported that GSA's
backlog was approximately $50 billion. Whether the cost to repair GSA's
buildings is $6.1 billion or $50 billion, GSA does not currently have
the funding. The Smart Space Act is intended to address this
[[Page H2651]]
funding shortfall by directing GSA to identify alternative financing
solutions for the construction, renovation, or, when necessary,
disposal of public buildings.
GSA already uses alternative financing in the form of public-private
partnerships, or ``P3s,'' to procure energy savings and facility
improvements with no upfront capital costs or appropriations from
Congress.
When used appropriately and when both partners are held accountable,
public-private partnership can help deliver high-cost, technically
complex projects more quickly, leverage private-sector resources and
expertise, and reduce construction and operational risks for the
Federal Government.
H.R. 7388, as amended, directs GSA to convene consultation meetings
with real estate experts to identify alternative financing solutions
for the construction or renovation of public buildings. Learning from
experts is always a good thing.
Mr. Speaker, I support this bill and urge my colleagues to do the
same.
Mr. Speaker, I reserve the balance of my time.
Mr. TAYLOR. Mr. Speaker, I yield 2 minutes to the gentleman from
Missouri (Mr. Burlison), the author of this legislation.
Mr. BURLISON. Mr. Speaker, I thank the gentleman for yielding.
Mr. Speaker, I rise today to support my bill, the Smart Space Act of
2026, legislation that modernizes how the Federal Government manages
its real estate portfolio.
Today, the Federal Government holds billions of dollars in
underutilized and outdated Federal buildings, while hardworking
American taxpayers are left to cover the costs of their repair, upkeep,
and maintenance.
If Congress is serious about being responsible stewards of taxpayer
dollars, then Congress must also be serious about how the Federal
Government manages its real estate.
This is exactly what the Smart Space Act is designed to do.
The Smart Space Act requires the General Services Administration to
convene real estate experts to identify alternative financing solutions
for acquisition of or disposal of Federal properties through leveraging
public-private partnership.
These partnerships have been used successfully by both the private
sector and State governments for years to modernize infrastructure
while keeping costs at bay.
Public-private partnerships are proven to lower long-run costs,
minimize taxpayer exposure, and deliver reliable infrastructure more
efficiently than traditional Federal procurement methods.
Importantly, this legislation does not mandate any new construction
or spend a single taxpayer dollar. Instead, it creates a framework for
disciplined decisionmaking while retaining full congressional and
Presidential oversight.
It also encourages the Federal Government to engage in public-private
partnerships, which is both a practical and responsible step toward
modernizing our Federal infrastructure while ensuring fiscal
discipline.
The Smart Space Act is about doing more with less, respecting the
taxpayer, and bringing common sense to how the Federal Government
finances its core assets.
Mr. Speaker, I thank Chairman Graves for his leadership and
commitment to advancing this legislation, and I urge my colleagues to
support this legislation.
Mr. STANTON. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I support H.R. 7388, the Smart Space Act, as amended,
and urge my colleagues to do the same.
Mr. Speaker, I yield back the balance of my time.
Mr. TAYLOR. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, in closing, this legislation will help identify
alternative financing solutions for real estate projects, thereby
reducing costs and liabilities to taxpayers.
H.R. 7388 is a commonsense solution that ensures agencies can
continue to responsibly reduce the Federal real estate portfolio.
Mr. Speaker, I urge support of H.R. 7388, and I yield back the
balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Ohio (Mr. Taylor) that the House suspend the rules and
pass the bill, H.R. 7388, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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