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Government Efficiency Division Cancels 676 Leases, Aims at Budget Efficiency

Senate Ways & Means Committee. February 26th, 2025.

The Government Efficiency Division has recorded 676 contract cancellations for leases across multiple departments throughout the country. Specifically in California, there have been 54 lease cancellations. Both the Trump administration and the Government Efficiency Division have continued their initiatives to slice government expenditure, closing more than 50 building and property leases in California by April 8.

The strangely named ‘Wall of Receipts’ website, run by the Government Efficiency Division, logs these national cancellations, projecting around $400 million saved from these initiatives. Interestingly, just one month ago, this website posted 748 lease cancellations nationally, asserting a whopping total of more than 9.5 million and approximating savings up to $468 million. The Division has faced critique in the past regarding the accuracy of their declared savings.

Diving deeper into the Californian data, how many leases were cut? Last month, reports suggest the figure was 64. However, these figures were revised to 54 lease cancellations as of April 8. Interestingly, despite an overall reduction, there have still been a few extra cancellations.

Highlighting two terminations on March 4: one was the United States Fish and Wildlife Service located at 777 E. Tahquitz Canyon Way, Suite 208, Palm Springs, which reportedly saved $410,468. Another was the Alcohol and Tobacco Tax and Trade Bureau in Los Angeles, which, however, did not present any financial savings.

Moving on, another terminated lease was for the VBA in Rancho Cordova, which resulted in the closure of the office on Feb. 11, and according to the Government Efficiency Division website, this decision approximated a saving of $442,710. An agency somewhat cryptically referred to as ‘DEF CONT MANA AGNEY’ in San Jose closed its operations as of Feb. 10.

Other divisions such as the Government Accountability Office in Los Angeles and the Bureau of Alcohol, Tobacco, Firearms and Explosives in San Diego had been reportedly closed as of Jan. 30. The Efficiency Division site provides details such as the name of the agency, its location, leased area square footage, and the corresponding annual lease cost for each cancellation.

A common term seen against these terminations is ‘termination via mass mod,’ which signifies that the lease contracts were abruptly canceled through a governmental modification. However, the details provided per entry are limited, making it difficult to pinpoint the exact operational location of the agency beyond the city and state.

Previously undisclosed terminated lease in California, listed in Folsom by the Government Efficiency Division, is now revealed as ‘DOE FERC’. A local television station in Sacramento identified this as the Federal Energy Regulatory Commission.

Confusion arose over one particular Californian lease termination. The Division’s website stated an office of the Social Security Administration in Carlsbad was closed, however, technically, there seems to be no definitive office in Carlsbad. Instead, it’s recognized to be in Oceanside.

Significant changes were noted on the Division’s website by April 8. Some California-based operations previously recorded as closed, were removed from the list. To specify, 17 such removals ranged from the Corps of Engineers in Davis to the Internal Revenue Service National Office in Visalia.

At present, the Division’s website counts 54 lease cancellations in California. These involve agencies from diverse sectors and municipalities. Examples include the Corps of Engineers in Apple Valley, the Indian Health Service, the United States Fish and Wildlife Service in Arcata, the General Services Administration in Auburn, etc.

Moreover, for the state of California, this list extends to include a diverse range of other agencies, some of which may be located in smaller cities. For example, there are recorded lease terminations for a multitude of services ranging from larger urban hubs to relatively quieter towns such as Yreka, the home for the Natural Resources Conservation Service.

In conclusion, the Government Efficiency Division continues its focused efforts to reduce expenditure via lease terminations across the nation, with a significant quota allocated to California. As they continue committing to their cause of streamlined spending, one can expect more updates on the ‘Wall of Receipts’ website, though with an emphasis on transparency and precision.