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On his first day back in the White House, President Donald Trump issued an executive order requiring federal employees to return to full-time, in-person work, marking the end of widespread telework arrangements.

The directive, one of several Trump signed after his inauguration, affects the entire federal workforce, which totals over 3 million people, according to Federal Reserve Bank of St. Louis data. Agencies and departments must phase out telework and hybrid arrangements, though the order permits agency heads to grant exemptions where necessary.

No specific implementation date was provided, leaving agency leaders with flexibility in executing the transition.

Trump’s Vision for Federal Accountability

Trump’s order underscores his push for heightened accountability within federal agencies.

“The American people deserve the highest-quality service from people who love our country,” Trump stated, highlighting his aim to improve government efficiency by ending work-from-home policies that began during the COVID-19 pandemic.

According to Trump’s announcement, only about 6% of federal employees are currently working in-person full-time. The shift back to office work is expected to significantly impact not only federal employees but also the commercial real estate market.

Implications for Real Estate and Washington, D.C.

The return-to-office mandate arrives amid a commercial real estate sector struggling with declining property values due to remote work trends. Office landlords, particularly those with federal government leases, stand to gain from the policy change.

Washington, D.C., where the federal government leases approximately 45 million square feet of office space, is among the cities most affected. The city’s Democratic mayor, Muriel Bowser, had previously urged the Biden administration to repurpose underused office spaces or mandate a return to in-person work. Trump’s decision aligns with the concerns of both real estate stakeholders and policymakers advocating for a revitalized downtown.

Federal Departments and Future Changes

Eric Scott Turner, Trump’s nominee to lead the U.S. Department of Housing and Urban Development, expressed support for the executive order during a Senate Banking Committee hearing. He pledged to return all of HUD’s 8,097 employees to the office, aligning with the president’s broader policy goals.

While some agency heads may seek exemptions, the directive signals a sweeping policy shift with potential ripple effects for the federal workforce, the real estate industry, and the D.C. economy.