DOGE cancels FDA facility leases, claims US $30M in savings

USA – The Department of Government Efficiency (DOGE) has canceled 30 leases for U.S. Food and Drug Administration (FDA) facilities nationwide, including a key drug testing lab in St. Louis, Missouri.

The agency claims this move will save nearly US $9 million in the next year and around US $30 million in total.

The White House and the Department of Health and Human Services (HHS) have not commented on when the leases will expire or whether any FDA employees will be laid off or reassigned.

The FDA redirected inquiries to the General Services Administration (GSA), which oversees federal buildings.

Former FDA Deputy Commissioner Howard Sklamberg raised concerns about the decision, particularly regarding the St. Louis lab, which plays a critical role in drug safety oversight.

“That laboratory is FDA’s most important pharmaceutical lab in the country,” Sklamberg stated. “The drug supply is quite safe, but in the medium- and long-term, [closing the facility] increases the risk of drugs that are unsafe or not effective.”

The FDA conducts independent drug testing to ensure regulatory compliance, supplementing inspections of manufacturer-run laboratories.

Sklamberg warned, “Any significant cut in that lab would put a big gap in FDA’s drug testing program, which is an important part of ensuring the safety and efficacy of drugs.”

In response to concerns, a GSA spokesperson said the lease terminations are part of a broader plan to optimize federal office space and reduce costs.

“GSA is reviewing all options to optimize our footprint and building utilization,” the spokesperson said. “A component of our space consolidation plan will be the termination of many soft term leases.”

The GSA also noted that many federal buildings are outdated and expensive to maintain. “GSA will consider non-core assets for divestment from government ownership in an orderly fashion to ensure taxpayers no longer pay for empty and underutilized federal office space,” the agency stated. It estimates these efforts could save over US $430 million annually.

DOGE has aggressively pursued budget cuts across the federal government under the Trump administration. However, some experts argue that these reductions are being implemented too hastily.

Stephen Grossman, an FDA regulatory consultant, cautioned, “There are well-established protocols for downsizing the federal government.

It requires evaluation of needs, identification of priorities, and establishment of a plan that leaves the remaining government services viable.”

Instead, he added, “Both layoffs and shuttering of facilities are being done by fiat… It’s much better to have a plan and do it right from the beginning.”

Beyond the FDA, several other health agencies have been affected. The Centers for Disease Control and Prevention (CDC) is set to lose a leased office in Atlanta by May 2025, cutting US $2.5 million in annual costs.

Lease terminations have also impacted the Centers for Medicare & Medicaid Services in Seattle and a Department of Health and Human Services (HHS) facility in Cleveland. OSHA has lost nearly 15 leases as well.

DOGE initially claimed US $16 billion in savings from these cuts but has since revised the figure to US $9 billion.

Critics note that the agency has removed or altered thousands of federal contracts from its website.

The Trump administration had aimed to cut US $2 trillion in spending, but current figures are far below that goal.