- The US Department of Education plans to expand its Lyndon B. Johnson will leave the headquarters building and move to a smaller office at 500 D Street SW, saving an estimated $4.8 million per year in operating costs.
- The Department of Energy will acquire the LBJ Building, thereby avoiding the estimated $350 million cost of its existing Old Forrest building.
- The move comes after nearly 50% workforce reduction in the education department.
United States Department of Education announced It was reported Thursday that it would be moving out of its longtime headquarters in Washington, D.C., into a smaller building.
The agency will move to a smaller federal office a block away, a move that underscores how much the department has shrunk under pressure from the Trump administration to dismantle it.
The LBJ Building, located at 400 Maryland Avenue SW, is now about 70% vacant following a reduction in force that cut nearly half of the department’s workforce.
The target for this move is August 2026.
Headquarters relocation designed to cut costs
Under the plan, the Department of Education would move to 500 D Street SW, a federal building about a block away from its current home. The smaller footprint is expected to save taxpayers approximately $4.8 million annually in lower rents and operating expenses.
Meanwhile, the Department of Energy would leave its old James V. Forrestal building and take over the LBJ headquarters. Officials say the Forrestal building requires an estimated $350 million in deferred maintenance. This is money the government could avoid spending by shifting the energy to the LBJ facility.
“Relocating to the LBJ Building will provide significant savings to taxpayers and ensure the Department of Energy continues to fulfill its mission“Energy Secretary Wright said in a statement.
GSA Administrator Forst framed the deal as a model for smart federal real estate management. “This is a government that works better for the American people“That said, this move strengthens the overall real estate portfolio of the government.
A visual reminder of the shrinking education department
The headquarters move comes a year after President Trump signed an executive order directing the federal government to close the Department of Education and transfer its functions back to the states. Since that order, the administration has made force cuts affecting nearly 50% of the department’s staff, consolidated satellite offices in the DC metro area, and transferred oversight of many programs to other agencies.
Result: The administration says the headquarters building is about 70% unused.
What this means for federal employees and departmental services
The department said there will be no immediate impact on the remaining employees. Employees will receive updates from their managers regarding the methodology of this move in the coming weeks. The transfer will be phased in to prevent disruptions to ongoing operations, including the administration of federal student aid and grant programs.
Officials stressed that no federal services would be disrupted during the transition.
For borrowers and families who interact with the Department of Education (primarily through federal student loans and Pell Grants), the move should not impact day-to-day service.
However, the broader downsizing effort has raised questions about whether a weakened agency can maintain the same level of borrower support and oversight as loan servicers.
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