The renovation of the Federal Reserve in the DC headquarters in Washington, which has long been planned for a long time $ 2.5 billion political flashpoint. Initially estimated at 1.9 billion US dollars in 2021, the costs for the revision of the historic Marriner S. Eccles building of the FED and its adjacent Federal Reserve East Building rose by over 30%. Draw fire by President Donald Trump and its alliesAnd raise questions about the fiscal supervision of the nation of the nation of the nation.
The projectIt began in 2017 and became on the foundation stone in 2022, aims to bring the aging buildings into compliance with modern security and accessibility codes and add office space while maintaining its historical architecture. However, this effort has growing pain and costs.
The renovation of the Fed was never an easy task. In fact, FED chairman Jerome Powell admitted that the renovation work would probably confiscate controversy. “Nobody in office would like to carry out a large renovation of a historical building during their term.” he said In June. But Powell sees the project necessary.
According to the Fed Information page In the project, neither the Eccles building nor the east building were ever completely renovated, although they were built almost a century ago, with some large mechanical, electrical and sanitary systems that are on their construction and its lead and asbestos.
The original budget underestimated several familiar forces: inflation from pandemic, the increasing construction costs and unexpected infrastructure challenges. Prices for steel steel and other materials staggered In 2021 and 2022, the offer chains and the demand for large -scale projects recovered. Local shortage in the construction industry, namely mechanical, sanitary and electrical business, further increases the costs. These price inflation factors were noted in the budget of the Fed Board 2025.
Several environmental factors have also contributed to the renovation costs on site. The workers discovered asbestos and several problems with water table that resulted from the swampy DC floor. These complications have added complexity and price costs for the excavation and fundamental work – especially since strict DC building regulations Cap Building Heights– Build deeper building in the underground building. The difficult excavation work even brought the company, which Fed Foundation of the Fed and underground an award 2025 for “worked.”Excellence in the face of adversities”From the Washington Building Congress.
These challenges are coupled with provisions of the Design Oversight Board, which place the aesthetic requirements for the renovation work. During the first Trump management, architects proposed to use more glass in the renovation work. Trump appointed the US Commission for Fine Arts More white marble The President’s proposed mandate agree that all new federal buildings are neoclassical. This luxurious white marble Come from Georgia and was used intensively in the construction of national sights including the US Capitol. Apart from Georgia Marble, the materials used during the renovation of the Fed have to be collected in Germany.
And in order to meet the original marble facades and detailed interiors, the Fed must be used Special processes More expensive than in Washington buildings without historical importance or not in the National Mall.
These invisible costs are not in the core of criticism be accommodated in Powell. Trump and its allies have confiscated the project as evidence of wasteful expenditure by setting up the Fed structure of extravagant roof gardens, VIP elevators and high-end dining rooms-Casams Powell and the Fed contested.
In order to further reduce the costs and justify the project, the FED canceled the renovation work to a third neighboring building and made it clear that most of the controversial features never existed at all. The so -called “gardens”, It saidare only parking spaces on the roof with plantings for rainwater management. The central bank on Monday published A virtual tour through the construction site as further evidence, including clips of the asbestos seal and the explosion resistant window installation.
Ultimately, the Ballenbudget reflects the same economic challenges that the Fed has spent in recent years to tame: inflation, lack of work and disorders of the supply chain. Now the central bank not only has to manage these forces for the nation, but also justify its effects on its own interests.
The Federal Reserve leaned A from A Assets Request for comment.
