3 articles · Updated · The Washington Post · Sep 30
Summary
$2.4 billion in Fed headquarters renovations drew a watchdog finding that the central bank failed to control costs, with the project rising from a $1.3 billion budget approved in 2020.
Construction costs alone jumped from $921 million to $2 billion after the Fed never secured a guaranteed maximum price and instead split work into 84 packages without an overall cap.
Nearly $500 million in overruns came from four mechanical, electrical and plumbing packages, which the project team did not independently recheck because it preferred to keep work moving, the report said.
Kevin Warsh said the General Services Administration will take over the project immediately and that an independent auditor will review every cost awarded so far.
The inspector general found no criminal-law violations or administrative misconduct, undercutting Trump's earlier claims of "criminality" and a Justice Department probe into Jerome Powell that was later dropped.