The Fed Building Renovations At Center Of Trump's Fight With Jerome Powell: 5 Things To Know

The Trump administration is threatening to bring criminal charges against Federal Reserve Chair Jerome Powell over cost over-runs at the U.S. central bank's headquarters complex in Washington, the latest broadside by Trump against Powell and a Fed he wants to lower interest rates dramatically.

The cost of the Fed's years-long renovation of two historic buildings has spiraled beyond the original estimates, and arose earlier this year as a new pressure point for Trump against Powell.

Here are five things to know about the project: 

What are the buildings the Fed is renovating that have drawn Trump's scrutiny? They are the Eccles Building, constructed between 1935 and 1937 as the Fed's headquarters, and the 1951 Constitution Avenue Building, completed in 1932 for the U.S. Public Health Service and used over the years for various purposes, including in World War II to house the Combined Chiefs of Staff. By 2018, it was transferred by the first Trump administration to the Fed to allow a renovation that would put "a vacant building back in productive use, allow the Federal Reserve Board to consolidate several leases and result in savings for taxpayers.” The 1951 Constitution Avenue Building is listed on the National Register of Historic Places. 

How much are they over budget? As of mid-year 2025, Russell Vought, the director of the Office of Management and Budget, said the cost overrun is "$700 million and counting." The Fed's budget showed the project's current estimated cost at $2.46 billion up from $1.88 billion in 2024, a difference of about $580 million. Fed's budget data for 2025 is not yet available. The document also shows that the Fed eliminated the planned renovation of a third building, cutting about $510 million in costs. 

Why are they over budget? It comes down to three things: higher-than-estimated labor and materials costs, design changes to preserve the historic buildings and their appearance, and unforeseen problems including lead contamination in the ground and higher-than-anticipated amounts of asbestos. 

Do they include lavish elements? Built nearly a century ago and never renovated, the buildings required new plumbing, electrical, heating, water, and other infrastructure, as well as updating to allow access for people with disabilities, a basement for one of the buildings and an addition for the other to make enough room for existing staff currently occupying other leased offices. There is no Governors-only elevator or VIP dining room, the Fed says, and a new water feature in the original plans for the 1951 Constitution renovation was eliminated. There are no "rooftop terrace gardens" as Vought asserts. One building has a ground-level front lawn that doubles as the roof of an underground parking structure that planning documents referred to as a "garden terrace." Plans also refer to "vegetated roofs" used to help with stormwater runoff and building efficiency. 

What about oversight of the project? The Fed by law has authority to determine its spending on capital projects. Its Office of Inspector General receives monthly reports on the project, conducted a review in 2021, and is now charged with conducting a fresh review. The Fed consulted a number of planning bodies, including the Fine Arts Commission and the National Capital Planning Commission, on the design and development of the project. The Fed says it made some changes to the original plans to save money, but the changes were not substantial.