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Reading: GSA Reports $60B in Savings as Trump Shrinks Federal Footprint
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Baner Club > Blog > News > GSA Reports $60B in Savings as Trump Shrinks Federal Footprint
NewsUnited States

GSA Reports $60B in Savings as Trump Shrinks Federal Footprint

Last updated: 2026/01/20 at 6:29 PM
Published January 20, 2026
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GSA Administrator announces $60 billion in savings as Trump administration shrinks federal government footprint
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Trump’s Government Streamlining Yields Major Results

One year into President Donald Trump’s second term, the General Services Administration (GSA) announced it has delivered more than $60 billion in federal contract savings. Additionally, the agency credits the results to efforts to reduce the federal real estate footprint, cut red tape for small businesses, and modernize procurement rules.

Contents
Trump’s Government Streamlining Yields Major ResultsFederal Contracting and Regulatory OverhaulStreamlining Rules for Small BusinessesModernizing Payments and Federal ServicesTrump’s Vision Sets the Tone

Since January 2025, the GSA disposed of 90 federal properties, cutting over 3 million square feet. As a result, the agency avoided roughly $415 million in repair and operating costs. Property sales also generated $182 million in revenue, while renegotiated leases and portfolio reductions prevented another $730 million in future expenses.

Moreover, the agency has identified 45 more high-cost, underused properties for accelerated sale. If completed, these sales could save taxpayers over $3 billion in repair and operating costs.

Federal Contracting and Regulatory Overhaul

GSA, founded in 1949, manages more than 360 million rentable square feet nationwide. According to Administrator Edward C. Forst, the agency is “right-sizing our federal real estate portfolio, streamlining operations, and using the buying power of the U.S. government to get the best deals for taxpayers.”

Working with the Office of Management and Budget, the Department of Defense, and NASA, the GSA also completed a historic rewrite of the Federal Acquisition Regulation (FAR). Consequently, the revision cut roughly one-quarter of the rulebook—eliminating 484 pages and 230,000 words. Officials removed over 2,700 “shall” and “must” mandates to speed procurement and encourage competition.

In addition, the agency canceled more than $500 million in underperforming contracts and reduced the federal vehicle fleet by over 1,000 vehicles.

Streamlining Rules for Small Businesses

GSA officials have reduced the Federal Management Regulation by 72% and the Federal Travel Regulation by 50%. Furthermore, they removed 84 outdated policy bulletins. As a result, compliance burdens for small businesses dropped by 70%, and vendor onboarding now occurs on the same day instead of taking up to 30 days. The changes are projected to save $900 million over the next decade.

Modernizing Payments and Federal Services

The federal government also upgraded systems for payments and citizen services. For example, Login.gov now prevents thousands of suspected fraudulent identity attempts daily. Additionally, major partner agencies have adopted biometric verification to enhance security.

Meanwhile, the GSA is advancing artificial intelligence and automation. Specifically, the new USAi platform supports federal AI testing and deployment, allowing agencies to adopt emerging technologies securely.

Trump’s Vision Sets the Tone

In a press release, GSA highlighted that these accomplishments reflect Trump’s vision of a leaner, more accountable government. Furthermore, officials said the results “set the tone for a results-driven second term.”

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TAGGED: Baner Club, federal government streamlining, GSA savings Trump administration, small business federal regulations, Trump procurement reforms

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