Rep. Luna has referred Powell to the DOJ for possible perjury over the $2.5B renovation. Powell denies adding luxury features and says the changes did not breach regulations
Federal Reserve Chair Jerome Powell is facing a criminal referral to the Department of Justice (DOJ) by Rep. Anna Paulina Luna (R-Fla.), who alleges that Powell may have committed perjury in his testimony to Congress about the $2.5 billion renovation of the Fed’s headquarters.
The referral, announced Thursday on X, follows weeks of public criticism over the cost of the project, which has grown by roughly $600 million since it was initially approved. Luna cited concerns over what she called “his crazy $2.5BN building.”
“I am criminally referring Jerome Powell to the DOJ to investigate perjury regarding his crazy $2.5BN building,” Luna wrote.
Jerome Powell’s office renovations ($2.5B) cost more than the new Titans stadium in Nashville ($2.1 B) or the new Bills stadium in Buffalo ($2.2 B).
— Rep. Anna Paulina Luna (@RepLuna) July 17, 2025
That is insane.
Federal Housing Finance Agency (FHFA) director Bill Pulte had earlier pushed Congress to investigate Powell, accusing him of giving “deceptive” Senate testimony about the renovation.
“I am told by very reliable Congressional sources that there may be a criminal referral coming from one or more Congress members to the DOJ for Jay Powell’s alleged perjury about the $2.5BN building,” Pulte wrote on X.
I am told by very reliable Congressional sources that there may be a criminal referral coming from one or more Congress members to the DOJ for Jay Powell’s alleged perjury about the $2.5BN building.
— Pulte (@pulte) July 17, 2025
President Trump also weighed in via Truth Social, reposting coverage of the allegations and writing: “‘Too Late’ should resign immediately!!!”
Read next: Trump denies reports he's close to firing Powell
Powell denies allegations
The renovation of the Federal Reserve’s Washington, DC headquarters, approved in principle by the Board of Governors in 2017, was greenlit by the National Capital Planning Commission (NCPC) in September 2021. The budget has since grown from $1.9 billion to $2.5 billion, with the Fed citing pandemic-related cost increases in materials like steel and cement, as well as the complexity of underground work.
The Fed said that the Office of Inspector General (OIG) has full oversight of the project, receiving monthly reports since it was approved by the Board of Governors in 2017. White House director of management and budget Russ Vought alleged that Powell could be in violation of federal procedures, regardless of whether he was truthful during testimony, if he made material changes to the approved design without proper authorization from the NCPC.
Powell, in his defense, noted that the NCPC requires re-submission only if “substantial changes” are made post-approval. The Fed, he argued, did not consider any of its changes substantial enough to merit resubmission.
“We take seriously the responsibility to be good stewards of public resources,” he wrote in a letter to Vought.
Powell noted that the OIG has had access to monthly reports on construction costs and activities since the project’s inception. He acknowledged the cost overruns but claimed they stemmed from legitimate construction challenges and design adjustments.
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Powell added that the project is proceeding in line with NCPC-approved plans, and any changes were minimal.
“The Board has made a small number of design changes to scale back or eliminate certain elements and has added no new elements,” he stated. “These changes were intended to simplify construction and reduce the likelihood of further delays and cost increases.”
In response to the allegations, Powell has requested the OIG conduct a formal review of project costs, contracts, and management.
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