WASHINGTON, DC-A bill that passed the House Appropriations Committee on Wednesday would cause the federal government to default on its leases, warns General Services Administration administrator Dan Tangherlini.
In a statement released on Wednesday, Tangherlini says the measure provides insufficient funding for what the government needs to pay its rental costs, according to the Washington Post.
The bill, which passed the House Appropriations Committee by a 27-21 margin, would reduce GSA funding for fiscal 2014 by $476 million as compared to fiscal 2013 and is $2.4 billion below the agency's funding request.
“In order to make that work, we may have to default on leases; close facilities; or even, in some extreme cases, breach our contracts, which would result in lessors charging higher leases for federal agencies,” Tangherlini said.
He adds, “Not paying our rent would create uncertainty in the real estate market across the country and it would do so at a time when the national economy is still recovering.” See story in the Washington Post.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
