Federal building projects are funded and approved through different routes depending on the agency, the project, and the authority Congress provides. For many civilian buildings, GSA uses its Federal Buildings Fund and seeks congressional approval for projects above applicable prospectus thresholds; federal courthouses can have separate design and construction stages; and Department of Defense construction may use military-construction or operations-and-maintenance funds.
How the process works in broad terms
A federal building project typically moves from a documented need to planning, approval and funding, procurement, construction, and oversight. The agency and legal authority determine the details: who approves the project, which account pays for it, whether approval happens in stages, and what must be reported to Congress.
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Authorization, appropriations, and obligational authority are not interchangeable. Authorization establishes or permits a program or activity under the applicable law; an appropriation provides budget authority; and obligational authority permits an agency to incur obligations against available resources. The sequence and terminology vary, so a project’s governing statute and appropriations materials matter more than a generic description of the process.
GSA public-building projects
Need, prospectus, and congressional action
For many civilian buildings managed by the General Services Administration (GSA), GSA and the tenant agency identify and plan the need. If a project exceeds the applicable prospectus threshold, GSA submits a prospectus to the congressional committees with jurisdiction. It describes the project and its estimated cost. The threshold and approval requirements should be checked for the specific project rather than assumed from a single figure.
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Funding through the Federal Buildings Fund
GSA’s Federal Buildings Fund (FBF) is a revolving fund supported by rent paid by tenant agencies. Rent does not, by itself, automatically authorize GSA to spend money on a particular new building. Congress annually provides GSA obligational authority to use FBF resources for construction, operations, and maintenance. Congress may also provide supplemental appropriations or fund a tenant agency directly.
Procurement and delivery
Once the necessary approvals and funding are in place, GSA procures design and construction services, awards contracts, manages construction, and monitors delivery. A project’s scope, schedule, and budget baseline can change as contracts are awarded and conditions develop. Those revisions are part of the project’s record and should be considered alongside its original targets.
Federal courthouses can have staged approvals
Courthouse projects illustrate a more explicitly staged path within GSA’s work. The Government Accountability Office (GAO) describes congressional committees as authorizing courthouse projects and Congress as appropriating funds, often at both the design and construction phases. A site-and-design prospectus may establish initial scope, size, and estimated cost; a later construction prospectus addresses the construction phase. After funding, GSA competitively selects private-sector firms and manages the construction contract. This description is specific to the courthouse process, not a universal sequence for all federal construction.
Courthouse decisions also involve lifecycle trade-offs, not just the amount needed for the next phase. In a 2013 report, GAO said the judiciary’s FY 2014–2018 five-year plan listed about $1 billion for next phases of 12 recommended courthouse projects, while estimated federal costs over 20 years were $3.2 billion. GAO also found that 10 of those 12 recommended projects had not been evaluated under the then-new Asset Management Planning process. These are historical findings, not current cost estimates.
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Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →In a 2025 report, GAO stated that Congress appropriated $2.1 billion for 15 courthouse construction projects during fiscal years 2016–2024. GAO also concluded that changes in the U.S. Courts’ 2021 Design Guide could increase the size and cost of future courthouses. It recommended reassessing those changes with input from agency partners, project stakeholders, and courthouse occupants, while considering future rent and operations and maintenance costs.
DOD construction follows a separate funding route
Department of Defense (DOD) contingency construction may use military construction (MILCON) or operations and maintenance (O&M) appropriations, depending on the project and the authority used. That makes the funding account and legal basis important questions when examining a DOD facility; the GSA prospectus process should not be assumed to apply.
GAO has raised oversight concerns about identifying the full universe and cost of contingency construction projects, deciding the appropriate level of construction, and reviewing projects when missions change. In a 2026 report, GAO said projects above $9 million are typically identified in military-construction appropriations materials and generally in the annual National Defense Authorization Act; smaller projects can sometimes be specified too. This is a reported threshold in that DOD context, not a universal construction rule. Confirm current law and project-specific appropriations materials before applying it to an active project.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What to check when following a project
To understand who approved a project and how it is being controlled, follow its records across planning, funding, contracting, and completion. Useful questions include:
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- Authority and agency: Which agency is responsible, and what law or authority governs this project?
- Approval and funding: Which committees or congressional actions apply? Is funding provided by phase, through a revolving fund’s obligational authority, or through another appropriation?
- Scope: What size, functions, and other requirements were approved, and have they changed?
- Cost and schedule: What were the initial estimate and baseline, what revisions have been made, and what is the final cost and delivery date?
- Procurement: How were design and construction services procured, and who manages the contracts?
- Oversight and learning: Are changes reported to Congress, and does the agency assess completed projects to identify lessons?
- Lifecycle effects: For a project such as a courthouse, how do design and size affect future rent, operations, and maintenance?
GAO’s 2019 review shows why original targets alone are not enough. It examined 36 GSA major construction projects completed in fiscal years 2014–2018, with a combined total cost of $3.2 billion; GAO defined a major project as one costing at least $20 million. GAO reported that GSA routinely met cost and schedule goals, but did not report completed projects’ final costs or how much project costs and schedules had been revised. GAO recommended reporting final costs and establishing written guidance for post-construction assessments. Those findings describe the projects and reporting practices reviewed at that time, not the status of every current GSA project.
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