Construction work was carried out on September 17, 2024 in Washington, DC, with a focus on the Federal Reserve buildings.
Anna Moneymaker | Getty Images News | Getty Images
Once he finishes his efforts to cut wasteful government spending, Elon Musk has one last shot, raising questions about the $2.5 billion Federal Reserve building renovation.
In a rare interview with a printing reporter, an initiator on the Advisory Committee of the Government Efficiency Bureau said the prices for central bank operations “sound high.”
“So what do you get with a $2.5 billion renovation? It has to be incredible,” said Tesla CEO.
The Fed launched the project in 2021 at an initial price of $1.9 billion. Since then, several factors have converged to the increased costs, including rising materials costs, delays in construction, design and changing site issues.
Some renovation goals include a backlog of upgrades, meeting building standards and regulations, updating technology, and addressing energy efficiency. Fed officials say the change will ultimately save money by consolidating staff into one space.
But Musk said the cost overrun should be part of a broader investigation into government waste. Doge claims it saved taxpayers $160 billion during the short business period that looked into government books.
“At the end of the day, I think this is all because it’s taxpayer money… We certainly should see if the Federal Reserve is spending $2.5 billion on interior designers,” Musk said. “It’s a lazer on the eyebrows, do you know? Can they see a picture of what you got for that?”
The Fed is not actually funded by taxpayers, but by profits that the central bank earns with fees from its securities and the banks it supervises. Members of the federal committee have salaries set by Congress and are also paid through the same funding mechanism.
Normally, any money the Fed earns over its operating costs will be repaid to the Ministry of Finance. However, for the past two years, central banks have seen operating losses due to rising interest rates that have to be paid to bank reserves.
Regarding renovations, a document submitted to the National Capital Planning Committee noted that “although there have been periodic changes and renovations to the building over its 80-year history, many of the building systems are at the end of their useful life, and the buildings no longer serve the needs of the board of directors completely.”
Fed officials declined to comment.
