A U.S. district court judge has granted permission for the relocation of the United States Institute of Peace (USIP) headquarters to the General Services Administration (GSA), escalating an existing legal battle between former USIP officials and the Trump administration’s Department of Government Efficiency (DOGE).

In a decision on Tuesday, Judge Beryl Howell recognized that the transfer was already done on Saturday, which rendered any additional legal challenge to the property itself meaningless. “The deal is no longer merely ‘proposed’ but done,” Howell wrote, dismissing a request to enjoin the transfer.

But the move has been strongly criticized by USIP’s former attorney George Foote, who compared it to a judge dismissing a case of burglary because the property stolen had already been passed on. “That’s like allowing a burglar to enter your home, steal your television, and having the court say well, there isn’t any TV to adjudicate, so I can’t do anything about it,” Foote said.

USIP Takeover and DOGE’s Role

The controversy revolves around a March 14 Trump administration decision to dismiss all 10 voting board members of the congressionally funded but autonomously run USIP. As a response, DOGE officials tried to take over the institution, only to be stopped by staff members who denied them access to the headquarters in Washington, D.C.

Several days later, DOGE officials came back with a key that they had acquired from a former security contractor and gained entry into the building. The coup soon extended to the institution as well, with former State Department official Kenneth Jackson being appointed USIP president. On March 25, Jackson was succeeded by DOGE employee Nate Cavanaugh, who had worked previously at GSA. By last Friday, the majority of USIP employees had been issued termination notices, essentially closing down the agency.

Government Gives USIP Building Away for Free

Subsequent legal documents have shown that Cavanaugh had the USIP headquarters building—estimated to be worth $500 million—donated to the GSA for free. In a letter that’s part of court documents, Cavanaugh informed GSA acting administrator Stephen Ehikian that the transfer was “in the best interest of USIP, the federal government, and the United States.

Backing the action, Office of Management and Budget Director Russell Vought signed off on Ehikian’s request to have the reimbursement figure set at zero dollars, thereby ensuring GSA acquired the facility without financial reward.

Legal Justifications and Counterarguments

Government lawyers contend that USIP is a “wholly owned government corporation,” whose property is subject to federal control. But USIP’s lawyers disagree, referring to the 1984 United States Institute of Peace Act that made the agency an “independent, nonprofit, national institute.” They further emphasize that the headquarters was constructed with substantial private funding and donations from its endowment.

Judge Howell recognized the nuance of the case, writing, “Ambiguity remains due to the lack of applicable law on whether USIP’s proper characterization is an ‘independent establishment’ or ‘Government corporation.'” She denied an earlier request to restore the USIP board, and her ultimate decision is forthcoming at the end of April.

USIP’s Endowment and Future Concerns

Outside the building, USIP’s endowment of more than $20 million remains in jeopardy. Although Judge Howell observed that USIP still nominally owns the funds, concerns exist that money could be diverted as well. The judge stopped short of enjoining the movement of funds but reserved judgment on future litigation possibilities.

GSA’s Motivation and Wider Governmental Property Sales

The impetus for the transfer is GSA’s requirement for more government office space. Yet, as a court filing exposed, GSA does not have the funds to purchase the USIP headquarters for fair market value. “The transfer will allow GSA to meet other governmental space needs at the USIP headquarters building in an economical way,” wrote GSA Commissioner Michael Peters.

The action follows on from wider efforts by the Trump administration to transfer hundreds of federal buildings, such as the FBI headquarters and a CIA office, under the DOGE’s cost-saving plans.

What Happens Next?

Although the court decision permits the transfer to be upheld temporarily, the larger legal fight regarding the governance and ownership of USIP is by no means concluded. Judge Howell specifically noted that the matter is not resolved and will be heard in expedited summary judgment proceedings over the next several weeks.

Foote is optimistic that USIP might be able to regain its headquarters if the court decides in its favor. But he cautions that possible bureaucratic hurdles might make it difficult. “Who knows, they might attempt to sell the building. They can muddy the title; they can make it very difficult for us to repair things,” he warned.

While the legal battle rages on, the future of the USIP headquarters—and its work—remains uncertain.