Smart Space Act of 2026

Floor Speech

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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.

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Mr. TAYLOR. 7388, as amended.

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.

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.

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