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- The Federal Reserve’s renovation project was expected to cost $1.9 billion. It now has a $2.5 billion price tag.
- Lead paint and asbestos discoveries contributed to increased renovation expenses and delays.
- Fed chairman Jerome Powell said a new DOJ probe is part of ongoing pressure from the Trump administration.
The Federal Reserve’s planned five-year renovation project is causing quite the stir in Washington.
Renovations began around 2022 on two Federal Reserve offices, the Marriner S. Eccles Building and the Federal Reserve Bank of East Building, which were first assembled in the 1930s, according to plans reviewed by the National Capital Planning Commission in 2021.
As workers gutted the aging structures, they uncovered lead paint and asbestos, pushing the cost of the renovations rose from $1.9 billion to $2.5 billion, as Federal Reserve chairman Jerome Powell described in a letter defending the renovation’s budget last year.
President Donald Trump has blamed the overruns on mismanagement and allegations of luxury additions. On Sunday, Kevin Hassett, director of the administration’s National Economic Council, told ABC’s This Week that the project became “the most expensive project in D.C. history.”
Later that day, Powell revealed the central bank now faces a potential Department of Justice investigation, and he’s facing a potential criminal indictment over the cost increases.
“No one — certainly not the chair of the Federal Reserve — is above the law,” Powell responded in a two-minute social media video. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
As questions swirl around the renovations, Business Insider gathered images of the construction, floor plans for the renovations, and design mock-ups.
The Eccles and FRB-East buildings have been wrapped in scaffolding and cranes since 2022.
Construction workers broke ground on the renovations in 2022 on the 93- and 88-year-old buildings.
The Fed said the building has not had a modernization project in decades. A series of decades-old electrical, heating, plumbing, and air ventilation systems ran through the historic building.
The project was necessary to “address a critical backlog of upgrades, to respond to changes in building codes and regulatory requirements, and to meet requirements for information technology, building security, environmental sustainability, and energy efficiency,” according to plans produced by the Fed and released to the public in 2021.
Documents show the Fed’s proposed floor plans for both buildings.
The Federal Reserve published floor plans for the expansion project in 2021. The plans plot out details like where new windows would be erected, why new shrubbery would be planted in specific areas on the lawn, how it would make offices more wheelchair accessible, and where historic marble will be reused.
Since the release of the plans, construction workers have uncovered asbestos and lead paint, resulting in higher-than-expected material requirements. Inflation has also increased the price of those goods.
A mock-up of the exterior, including plans to add some glass structures.
The modernization project would expand some sections of the Fed buildings, including areas with new glass-covered atriums.
The Eccles building’s courtyard will be converted into an atrium.
The courtyard at the center of the central bank’s main building would become a glass-enclosed atrium. The renovation would also include new accessible ramps, and the existing wooden oak doors would be stained a medium brown.
Both historic buildings’ interiors were finished with hand-carved wood in the 1930s. The woodwork will remain intact after the renovation.
Much of the project is dedicated to balancing “preservation and modern office needs,” according to the plans. Several office spaces plan to reuse marble and wood from the original buildings.
The Eccles building’s center wing skylight would be moved to the fourth floor to let the light stream in.
A natural light shaft, shown above, has sat on the top of the building since 1977. The renovation would relocate the glass casing to the fourth floor, allowing more light to enter nearby offices.
The core architectural details of each building are important to preserve, the Fed said. It can help project financial power.
The Eccles building was designed to project stability during the Great Depression, with marble halls and bronze fixtures meant to inspire public confidence in the banking system. Those original details are being carefully restored, the Fed said in the plans.
White House officials have alleged the renovations include new VIP dining rooms and elevators, a vegetated roof, and millions of dollars in new marble. The Fed has denied those allegations in press releases.
The Eccles building has been in disrepair, the Fed says.
Water damage has been an issue for the historic buildings, according to images produced by Getty photographers in a July 2025 walk-through of the construction. Pictures of the historic building’s lobby show extensive damage to ornate wood carvings.
Asbestos and lead paint have been a costly issue. Inflation hasn’t helped either.
The Fed said it needed to make renovations to make its offices “safe, healthy, and effective places to work,” according to the Federal Reserve’s plans. For years, workers have uncovered asbestos throughout the historic buildings — a material now banned in most construction in the US.
As the project continues, more materials have had to be replaced than expected. Construction-sector inflation has made the overruns steeper.
Trump has seen the renovation project up close.
In July 2025, Trump toured the renovation project with Powell and Republican Sen. Tim Scott.
During a brief interview with reporters, Trump and Powell sparred over the cost of recent construction projects in the building.
The building is expected to be completed in late 2027.
This year, Fed press releases suggested construction workers would leave the building in the fall of 2027. Employees who have been working at temporary offices are expected to move in during the first quarter of 2028, if plans proceed accordingly.
Once staffers return to the office, the Fed said its new campus would save money.
“Over time, the Board has needed to lease space in several commercial office buildings to support its operations,” the Fed said in a July 2025 press release. “This project allows the Board to consolidate its operations and reduce expenses on leased space elsewhere.”
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