Kari Lake, appointed by former President Donald Trump to lead the U.S. Agency for Global Media (USAGM), has taken swift measures to reform the agency, including canceling a significant lease for office space in Washington, D.C. The legality of her actions, particularly regarding the lease cancellation, is currently under scrutiny.

Background on Kari Lake and USAGM

Lake, a former television news anchor and political figure in Arizona, began her role as a special adviser to USAGM earlier this month. This independent agency operates Voice of America (VoA) and Radio Free Europe, among others. Recent executive actions by Trump sought to eliminate non-statutory functions within agencies, which has resulted in many USAGM employees being placed on indefinite paid administrative leave.

Lease Cancellation Details

On Friday, Lake announced via social media that she had canceled a lease for a 350,000-square-foot office at 1875 Pennsylvania Avenue NW, owned by EastBanc. This lease, purportedly initiated during the Biden administration, would have cost taxpayers approximately $250 million over 15 years and lacked facilities suitable for broadcasting operations.

Lake described the lease as “obscenely expensive,” emphasizing that it included a $9 million commission for a real estate agency that was allegedly well-connected, raising concerns about the procurement process.

Statements and Agency Direction

In her statement following the lease cancellation, Lake declared, “The U.S. Agency for Global Media will continue to deliver on all statutory programs that fall under the agency’s purview and shed everything that is not statutorily required.” She expressed full support for the president’s executive order aimed at reducing waste and inefficiency within the agency, calling ongoing issues of waste, fraud, and abuse unacceptable for American taxpayers.

Furthermore, Lake claimed, “This agency is not salvageable,” indicating a desire for significant reform moving forward.

Legal and Operational Implications

As USAGM is funded by Congress, the legal basis for Trump’s directive to fully dismantle the agency is uncertain. It is unclear if the administration possesses the authority to cancel leases that operate outside the General Services Administration’s jurisdiction. Typically, federal leases are binding during an initial firm term, and cancellation penalties can be significant if a lease is terminated prematurely.

According to legal experts, federal leases typically cannot be voided without a specific clause that allows for such actions, suggesting potential legal ramifications for the agency.

Historical Context of Voice of America

Established in 1942 and formalized by a charter signed by President Gerald Ford in 1976, Voice of America has been overseen by USAGM since its formation in 1994. The agency has primarily operated from its building at 330 Independence Avenue SW since 1954, a site recently earmarked for sale by the outgoing Biden administration as part of a strategy to reduce the government’s real estate holdings.

Data indicates that while USAGM’s office space could accommodate nearly 3,500 employees, daily occupancy rates in early 2023 averaged only 72 workers, revealing a stark underutilization of available space.