- The Department of War is asking Congress for the authority to sell and lease military real estate to fund its programs
- The legislative proposal would bypass the General Service Administration’s real estate oversight
- The proceeds would be used to fund the Golden Dome missile defense initiative and infrastructure modernization efforts
The Department of War has sent a legislative proposal to Congress for sweeping new authority that would let it sell off military real estate on its own terms, lease back facilities it still needs and channel the resulting cash into infrastructure upgrades and priority programs such as the Golden Dome missile defense initiative, Federal News Network reported Tuesday.
The proposal would let the DOW largely sidestep the General Services Administration procurement process, giving the department more speed and more discretion over how sale proceeds are spent. A newly created Treasury account would hold the cash generated from any such sales.
Where Will the Sales Go If the DOW Authority Is Approved?
According to the department, the money could support installation management- or infrastructure-related work that the DOW secretary judges necessary for national defense, and could also be shifted into major weapons procurement and modernization accounts. DOW officials wrote that this flexibility would let the secretary direct resources toward the administration’s top priorities.
Proceeds from property sales would also go toward modernizing barracks, ordnance storage, port infrastructure, and secure facility space, including areas built for “sensitive compartmented information” and special access programs.
Beyond installation upgrades, the sales revenue would also help underwrite the Trump administration’s Golden Dome missile defense system, ongoing southern border operations and the buildout of artificial intelligence data centers.
The Pentagon has stated that pursuing this authority would not affect resources already accounted for in the fiscal year 2026 budget request.
To preserve some congressional oversight, DOW would be required to notify the relevant defense committees at least 14 days before finalizing any sale, along with certification from the defense secretary that the deal serves the country’s. The authority itself would sunset five years after enactment.
What Are the Lease Terms Proposed by the DOW?
After selling military property, the proposal would also let the Pentagon lease back facilities it sells for periods of up to 50 years, structured in a way intended to soften the immediate budget impact of long-term lease commitments.
The same legislative package asks Congress to eliminate a $500,000 annual cap on payments tied to certain leaseback arrangements. DOW officials contend the cap has held back larger enhanced-use lease deals on military installations. Officials say the arrangement shifts a share of ownership, maintenance and construction costs onto private industry while unlocking outside investment for infrastructure the department might not otherwise be able to afford through military construction funding alone.
What Is the Justification for the DOW’s Proposed Sale Authority?
The push for new sale and leasing authority comes as DOW continues to struggle with oversight of its real estate holdings. The department manages more than 700,000 facilities valued at an estimated $2.2 trillion, but the Government Accountability Office has found that inconsistent property data and outdated utilization practices have hindered the DOW’s ability to pinpoint excess facilities, clarify what many properties are used for, and prioritize where investment is most needed.
