Washington D.C. – The Federal Reserve's ongoing $2.5 billion headquarters renovation project has ignited a fresh wave of criticism, culminating in renewed calls to dismantle the central bank. Senator Mike Lee (R-UT) recently amplified this sentiment, stating in a tweet, "> The Fed’s tone-deaf, $2.5 billion HQ renovation plan has opened eyes across America. It’s time. End the Fed." This public outcry underscores growing scrutiny over the institution's spending and its broader role in the U.S. economy.
The extensive renovation, which includes the historic Marriner S. Eccles Building and the 1951 Constitution Avenue Building, aims to modernize facilities, address safety concerns like asbestos and lead, and consolidate operations. The Federal Reserve asserts that the project is necessary to preserve aging infrastructure and will ultimately reduce long-term costs by allowing the Board to consolidate most of its operations. Officials have noted that neither building has undergone a comprehensive renovation since their construction in the 1930s.
However, the project's estimated cost has escalated from an initial figure of approximately $1.9 billion to $2.5 billion, drawing sharp criticism from various political figures. The White House, under the Trump administration, has particularly seized upon the cost overruns, with officials like OMB Director Russell Vought accusing the Fed of "gross mismanagement." This criticism is widely seen as part of a broader effort to pressure Fed Chair Jerome Powell, who has resisted calls for lower interest rates.
In response to the mounting pressure, the Federal Reserve has published detailed FAQs on its website, explaining that cost increases are due to factors such as inflation, unforeseen conditions like extensive hazardous material removal, and the complexities of renovating historic structures. Chair Powell has also requested the Federal Reserve's Inspector General to review the project's costs. Some features, including certain rooftop spaces and water features, were scaled back or eliminated due to higher-than-expected expenses, and a separate renovation of the New York Avenue Building was canceled.
Senator Mike Lee’s recent tweet is directly aligned with his long-standing advocacy for abolishing the Federal Reserve. On July 22, 2025, he introduced the "Federal Reserve Abolition Act," aiming to return monetary policy authority to Congress, citing the central bank's perceived role in inflation and economic instability. The renovation controversy has provided a new catalyst for these arguments, reigniting a debate among conservative and libertarian factions about the fundamental structure of U.S. monetary policy.