Judge Allows DOGE to Keep Control of $500 Million USIP Building
U.S. District Judge Beryl Howell has ruled that the Department of Government Efficiency (DOGE) can maintain control of the United States Institute of Peace (USIP) headquarters, valued at approximately $500 million, following its transfer to the General Services Administration (GSA) on Saturday.
The decision was based on the fact that the transfer had already occurred, making any attempt to block it moot for now. Judge Howell stated, “the transfer is no longer merely ‘proposed’ but done.”
The dispute began when DOGE attempted to enter the USIP building but were initially turned away. DOGE later gained access using a key given by a former security contractor, leading to significant personnel changes within the institute.
Nate Cavanaugh, a DOGE staffer, was appointed as USIP’s acting president and oversaw extensive layoffs at the organization. Cavanaugh stated that the transfer was “in the best interest of USIP, the federal government, and the United States.”
The justification for this ruling hinges on the completed transfer process. DOGE argues that USIP is a “wholly owned government corporation,” supporting the legitimacy of the transfer. However, USIP lawyers contend it is an “independent, nonprofit national institute” established by the 1984 United States Institute of Peace Act.
George Foote, a longtime outside general counsel to the institute, expressed frustration with the situation, likening it to “letting a burglar break into your house, steal your TV, and have the court say well, there’s no TV to adjudicate, so I can’t do anything about it.”
The USIP headquarters building, estimated to be worth $500 million, was transferred to the federal government at no cost. The transfer process was supported by the Office of Management and Budget Director Russell Vought, who agreed to “set the amount of reimbursement at no cost” for the facility in a letter.
USIP’s endowment, worth over $20 million, remains with USIP for now but may face future uncertainties. The endowment is currently a point of contention regarding its status as private donations versus government assets.
Judge Howell has acknowledged conflicting arguments and legal ambiguity, declining requests for a temporary restraining order. The case continues to evolve as both sides debate USIP’s status as either an independent entity or a wholly owned government corporation.
DOGE maintains that USIP’s assets are within their purview due to its status as a government corporation, supported by Justice Department lawyers citing President Trump’s executive order targeting independent organizations. Conversely, USIP attorneys argue that it is an independent entity, not subject to executive branch control, based on the 1984 act establishing it.
The legal proceedings are ongoing, and the future of USIP’s assets and operations remains uncertain. As the case develops, it may have implications for other independent organizations and their relationships with the federal government.