Judge declines to rule on transfer of USIP assets to General Services Administration

A D.C. District Court Judge refused Tuesday to rule on DOGE’s efforts to transfer U.S. Institute for Peace’s assets to the General Services Administration, sidestepping calls from the institute’s lawyers to block the move.

Newly appointed USIP head Nate Cavanaugh was ordered to transfer ownership of the independent think tank’s assets to the GSA this month, including the organization’s $500 million headquarters on Constitution Avenue.

According to a Monday filing, Mr. Cavanaugh was ordered to begin the transfer in a letter signed by Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth.

“I have concluded that it is in the best interest of USIP, the federal government, and the United States for USIP to transfer its real property located at 2301 Constitution Ave NW, Washington, D.C. 20037, to GSA and to seek an exception from the 100% reimbursement requirement for the building,” Mr. Cavanaugh wrote in a letter to acting GSA Administrator Stephen Ehikian included in Monday’s filing.

Lawyers for USIP asked U.S. District Judge Beryl Howell to block the asset transfer Monday.

However, Judge Howell refused to rule on the issue Tuesday, waiting to read briefings from USIP and the Justice Department before blocking the transfer. 

George Foote, longtime outside counsel for USIP, said that Judge Howell’s ruling was detailed and considered, but that USIP will win on the broader case later this month.

“Under the guise of implementing laws it eliminates a congressional policy by the executive. That’s got implications across the economy, not just for nonprofit organizations, but for individual rights, for the Fourth Amendment, for liberties,”  Mr. Foote said. “I don’t care which side of the political aisle you fall on. This is a frightening potential expansion of executive power, and we don’t know where it ends.”

Office of Management and Budget head Russel Vought echoed Mr. Cavanaugh’s desire in a separate letter included in Monday’s filing, urging Mr. Ehikian to approve the transfer.  

Mr. Cavanaugh, who works for Elon Musk’s Department of Government Efficiency, was installed as USIP’s acting president on March 25, replacing former State Department official Kenneth Jackson. Just a few days after his appointment, Mr. Cavanaugh oversaw massive layoffs at the organization, with nearly every employee receiving a termination notice. 

Mr. Cavanaugh also has ties to the GSA. Last month, he reportedly interviewed several GSA employees as a part of DOGE’s efforts to trim government spending through layoffs. 

Justice Department lawyers say USIP is an executive agency and that the transfer of its assets is consistent with President Trump’s executive order from February. That order targeted USIP and other groups in an attempt to eliminate “independent organizations.”

Following the order, DOGE workers tried to enter USIP’s headquarters in March but were turned away by the organization’s lawyers. However, DOGE came back just days later and gained access to the building with the help of local law enforcement. DOGE staffers ejected USIP staff and installed Mr. Jackson as acting president.

The White House also worked to dismantle USIP’s board of directors, removing all but three members. Those left include Mr. Rubio, Mr. Hegseth and National Defense University President Peter A. Garvin. USIP officials and staffers have called the firings illegal.

Lawyers for USIP asked Judge Howell last month to block DOGE’s access to the building following the takeover. While she rejected the lawyers’ calls to stop DOGE from taking over USIP headquarters, she criticized the department’s tactics.

“Are you the least bit offended by how this was executed?” she asked Department of Justice attorney Brian Hudak. “Because I have to say I’m offended on behalf of the Americans that did so much service for the country to be treated so abominably, not to say the directors on the board.”