The Fed's renovation estimate rose to $2.46 billion from $1.88 billion, becoming a focus of Trump administration efforts to pressure or oust Jerome Powell. A September 2026 inspector general report found oversight deficiencies but no misconduct or grounds for a criminal referral.
The Fed's December 2024 budget estimated renovation costs for its Washington headquarters at $2.46 billion, up from $1.88 billion in the previous budget. In 2025, Trump administration officials focused on the overruns as they sought to pressure Powell, who said rising material and labor costs reflected post-pandemic inflation and cited design changes and unanticipated asbestos-handling costs.
Powell asked the Fed's inspector general to review the project's costs. In January 2026, he said the Justice Department had issued grand jury subpoenas related to the renovations; a federal judge blocked them in March, finding they were issued to pressure Powell to lower rates or resign. The Justice Department closed its investigation in April, and Powell said he would remain on the Fed Board after his term as chair ended in May.
Kevin Warsh became Fed chair in May 2026, while Powell remained on the Board. In September, the Fed's inspector general found deficiencies in the Board's oversight of the project but no misconduct or grounds for a criminal referral.
