Smart Space Act of 2026

The Smart Space Act of 2026 would require the General Services Administration (GSA) to develop recommendations for using public-private partnerships and alternative financing methods to construct, renovate, or dispose of federal buildings more cost-effectively. The GSA would hold consultation meetings with experts in private commercial real estate, federal real estate, and state real estate financing to identify which federal properties could benefit from these alternative approaches.

Under the bill, the GSA would submit recommendations to the President and Congress identifying the types of public-private partnerships and financing methods best suited for federal building needs. The agency would also publish a list of specific federal building projects recommended for these alternative financing approaches. Projects on this list would need to meet certain criteria, such as consolidating or relocating federal agencies from costly, inefficient, or underutilized spaces that the government intends to sell or dispose of once vacated.

The practical effect would be to shift some federal real estate projects away from traditional government funding and construction toward partnerships with private companies. This could potentially reduce the upfront costs to taxpayers for federal building projects, though it may involve long-term payments to private partners. The bill has passed the House and is currently in committee in the Senate, where the Committee on Environment and Public Works is reviewing it.