Elon Musk Criticizes $2.5 Billion Fed Building Renovation as Excessive Spending

In one of his final remarks as the leader of the now-defunct Department of Government Efficiency (DOGE), Elon Musk is raising eyebrows over a $2.5 billion renovation of the Federal Reserve’s headquarters — calling for greater transparency and scrutiny of what he labels potential government overspending.

Speaking candidly during a rare interview with print media, Musk remarked, “What do you get for $2.5 billion in redecorating? Must be incredible.” He suggested the project’s rising costs deserve closer inspection, especially given DOGE’s focus on trimming unnecessary federal expenditures.

Originally budgeted at $1.9 billion in 2021, the renovation's costs ballooned due to construction delays, supply chain issues, and changes in the scope of the project. The Federal Reserve has defended the expense, citing urgent needs such as energy efficiency upgrades, compliance with modern safety codes, and consolidating staff into a single space to reduce long-term leasing expenses.

Still, Musk was unconvinced. “This is taxpayer money, indirectly or not. There should be oversight. Are we getting golden walls and diamond-studded conference rooms?” he quipped. Musk urged a public release of the building plans to justify the budget.

It’s worth noting that while the Fed is not directly funded by taxpayer dollars, it earns revenue from interest on securities and supervision fees from financial institutions. Any profit beyond its operational costs is typically returned to the U.S. Treasury — though in recent years, the Fed has operated at a loss due to higher interest payments on reserves.

Government records show the central bank’s 80-year-old building is suffering from outdated infrastructure and is no longer adequate for its operational demands. The project is being overseen by the National Capital Planning Commission, which acknowledged that while the structure has seen updates over time, many systems have reached the end of their functional lifespan.

Musk’s comments highlight his continued skepticism toward federal spending, even as DOGE, the advisory board he helped establish, winds down. DOGE claims to have identified $160 billion in potential savings during its tenure.

The Federal Reserve declined to comment on Musk’s remarks or the ongoing renovation.