Federal judge lets DOGE keep USIP headquarters worth $500 Million for free

Federal Judge Beryl Howell has allowed the Department of Government Efficiency (DOGE) to keep hold of the United States Institute of Peace (USIP) headquarters building, worth an estimated $500 million, according to a ruling issued on Tuesday. 

This decision follows several days of controversy over the building’s status. Although the formal dispute continues in court, the judge stated that the building transfer has already taken place and thus cannot be undone at this time. 

On Saturday, officials associated with DOGE transferred the USIP headquarters, located in Washington, DC, to the General Services Administration (GSA).

Judge Howell wrote that the transfer is “no longer merely ‘proposed’ but done,” which, in her view, made the plaintiffs’ request to block it moot for now. 

The building also contains office property and fixtures whose ownership the former USIP staff hoped to protect through the legal process. 

George Foote, a longtime outside general counsel to the institute, has voiced frustration with the situation. In his words, “That’s like letting a burglar break into your house, steal your TV, and have the court say well, there’s no TV to adjudicate, so I can’t do anything about it.”

This building has become a focal point of a dispute between the USIP’s former board and staff and members of DOGE. On March 14, the Trump administration dismissed the institute’s 10 voting board members.

When USIP staff refused to allow DOGE employees to enter the headquarters, the DOGE group returned with a physical key that a former security contractor had given them. That action allowed DOGE to take physical control of the premises. After that, a series of personnel changes occurred within the institute itself.

First, former State Department official Kenneth Jackson was put in place as USIP president. Then, on March 25, DOGE staffer Nate Cavanaugh replaced him. Before that, Cavanaugh had been assigned to the GSA. 

By last Friday evening, the majority of USIP employees received termination notices, effectively bringing the agency’s work to a standstill. 

Details from a lawsuit filed on Monday by former USIP staffers against Cavanaugh, DOGE, Donald Trump, and others in the administration show that Cavanaugh sought to transfer the headquarters to the GSA without asking the government to pay anything. In a letter, he told GSA Acting Administrator Stephen Ehikian that the transfer “is in the best interest of USIP, the federal government, and the United States.” 

In a different letter dated March 29, Office of Management and Budget Director Russell Vought agreed to Ehikian’s request to “set the amount of reimbursement at no cost” for the facility.

A court filing from Monday also lays out the Trump administration’s reasoning. Michael Peters, who leads the Public Buildings Service at the GSA, wrote in a transfer request form that “The transfer of the U.S. Institutes [sic] of Peace (USIP) headquarters facility … is a priority of the Trump-Vance administration.” 

The building’s transfer may not be permanent, at least for now

Under the arrangement just approved by Howell, the federal government obtains the USIP building at no cost, even though the structure itself is valued at around $500 million. The institute’s endowment, worth more than $20 million across various bank accounts, still belongs to USIP for the moment. However, that endowment might also face uncertainty later. 

Judge Howell said there is no immediate need to stop any transfer of funds and that she did not view blocking it as essential to the broader case right now.

One major issue is whether the USIP belongs fully to the federal government or operates as an independent agency outside of the executive branch. Lawyers for DOGE have argued in court that the USIP is a “wholly owned government corporation,” giving the GSA permission to take its property.

On the other side, attorneys for USIP point to the 1984 United States Institute of Peace Act, which established the institute as an “independent, nonprofit, national institute.” That legislation, in their view, clearly separates USIP from typical federal agencies. They also contend that the headquarters building resulted from extensive private donations, which means it should not be seized as a public asset.

Judge Howell has acknowledged that both sides have introduced conflicting arguments and says that “ambiguity persists” because there is very little law on point about how exactly to classify the USIP. 

Previously, she declined the institute’s request for a temporary restraining order that would have allowed the original board to return to their positions. That denial left the institute under DOGE’s control, at least for the time being.

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now