Economy

Federal Government Lease Cuts Hit 4 Offices in Birmingham, 20 Statewide

(Source: City of Birmingham)
Your support helps us grow and sustain a newsroom for the City Built to Change the South.
Donate today to help Birmingham stay informed.

The federal government is terminating real estate leases for space its agencies are using at four locations in Birmingham and a total of 20 locations in Alabama.

The agencies losing office space in Birmingham are the Internal Revenue Service, the National Labor Relations Board and the Mine Safety and Health Administration. The cuts are part of the work of the Department of Government Efficiency, headed by billionaire Elon Musk, to reduce spending.

“As Trump and Musk look to cut taxes for billionaires, they are shutting down seven IRS offices in Alabama, including two in Birmingham,” U.S. Rep. Terri Sewell, D-Birmingham, wrote in a Facebook post. “This will make it much harder for working class Alabamians to get help filing their taxes!”

Other affected agencies across the state include the Social Security Administration, the National Park Service, the Forest and Fish and Wildlife services, the Government Accountability Office, the Occupational Health and Safety Administration and the Federal Motor Carrier Safety Administration.

This table shows information reported on the Department of Government Efficiency’s website about lease terminations in Alabama. “Termination via Mass Mod” means the lease termination was part of a change to multiple contracts at one time.

In Birmingham, federal agencies will lose 64,467 square feet of office space — more than half of which is in two IRS offices. The leases cost $1.5 million a year, and canceling them is estimated to create $4.7 million in savings, according to the “Wall of Receipts” posted on the DOGE website Tuesday. Statewide, almost 272,000 square feet of real estate will be affected, with annual lease costs of $6.5 million and total projected savings of $19.4 million, according to DOGE.

Nationwide, the Trump administration has terminated nearly 750 leases, resulting in an annual savings of approximately $660 million, according to the DOGE website.

Fact checks of DOGE’s previous cost-savings statements have revealed exaggerated estimates. According to the Associated Press, almost 40% of terminated federal contracts won’t produce any savings.

Social Security Administration Offices Cut

The DOGE website lists the termination of four Social Security Administration office leases in Anniston, Cullman, Gadsden and Jasper. However, U.S. Rep. Robert Aderholt, R-Haleyville, told Alabama Daily News that SSA offices in Jasper and Cullman will remain open.

“The adjustments being made involve the cancellation of lease agreements covering hearing spaces, not the areas used for day-to-day operations,” Aderholt said in a statement. “These changes will not affect the ability of residents to access Social Security services at these locations.”

SSA is also planning to cut approximately 7,000 jobs across the country.

“The agency plans to reduce the size of its bloated workforce and organizational structure, with a significant focus on functions and employees who do not directly provide mission critical services,” the agency wrote in a press release.

Five SSA employees in Birmingham were placed on administrative leave last month due to closure of the Office of Civil Rights and Equal Opportunity.

Little River Canyon Center Lease Termination

The National Park Service is terminating a lease for 5,300 square feet at Little River Canyon Center in northeast Alabama, which serves as the visitors’ center for Little River Canyon National Preserve and provides office space for the preserve’s park rangers.

John Dersham, executive director of DeKalb County Tourism, said the preserve lost one park ranger, who also served Russell Cave National Monument, through DOGE’s recent staff cuts at the National Park Service.