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Federal Government Eyes Cost-Saving Moves with Potential Closure of Knoxville Office Spaces

by Rita Anderson
March 13, 2025
in Community
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KNOXVILLE, Tenn. – In a bid to streamline federal operations and reduce costs, the Department of Government Efficiency (DOGE) has identified two Knoxville office buildings as possible locations for lease terminations. The potential savings from these actions could amount to hundreds of thousands of dollars annually.

One of the locations under review is the Mine Safety and Health Administration (MSHA) office at 4700 Rutledge Pike. According to MSHA’s website, the agency is responsible for safeguarding U.S. miners by preventing accidents, illnesses, and fatalities in the workplace. However, the government’s lease at this location, which is owned by a third-party, could soon be terminated. By ending the lease, the federal government stands to save $208,273, or approximately $53,176 per year.

A spokesperson for the General Services Administration (GSA), which oversees federal property, explained that the agency is currently reviewing all of its office spaces. “Acting Administrator Ehikian’s vision for GSA includes reducing deferred maintenance liabilities, supporting the return to office of federal employees, and fostering stronger private/government partnerships in managing the workforce of the future,” the spokesperson said in a statement. “GSA is reviewing options to optimize our footprint and building utilization, and a part of this process includes the termination of many soft-term leases.”

The second location is at 710 Locust St. SW, where the Internal Revenue Service (IRS) National Office is housed. Unlike the Rutledge Pike location, this office space is federally owned. However, freeing up this space is expected to result in a savings of $109,816, or $69,357 annually.

Rep. Tim Burchett, a Republican from Tennessee’s 2nd district and a member of the DOGE Committee, expressed concerns over the underutilization of federal properties. “We don’t know who is leaving and who is coming back. Currently, we have too many unmanned federal buildings, and that needs to change,” he stated.

Despite the potential savings, the closure of these office spaces could have repercussions for employees and agencies currently housed in the buildings. However, the impact on federal workers remains unclear.

The GSA indicated that, should these closures occur, alternative office space will be provided to affected agencies, particularly if it involves public-facing facilities.

The proposal is part of a broader initiative by DOGE to cut costs and optimize the use of government resources, with a focus on reducing unnecessary lease agreements and improving the efficiency of office space utilization. While the final decisions on these closures have not been made, the impact on local government operations and employees in Knoxville remains a key point of interest.

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