Judicial Watch Sues Fed for Grand Jury Subpoenas Tied to Testimony about $2.5 Billion Headquarters Renovation

(Washington, DC) – Judicial Watch announced today that it filed a Freedom of Information Act (FOIA) lawsuit against the Board of Governors of the Federal Reserve System for failing to produce the grand jury subpoenas served in connection with allegations that Chairman Jerome H. Powell may have misled Congress about a $2.5 billion headquarters renovation project (Judicial Watch Inc. v. Board of Governors of the Federal Reserve System (No. 1:26-cv-01113)).

The lawsuit was filed in the U.S. District Court for the District of Columbia after the Federal Reserve failed to comply with Judicial Watch’s January 26, 2026, FOIA request seeking access to the subpoenas issued by the U.S. Department of Justice.

In a public statement in January 2026, Powell disclosed that the Justice Department had served the Federal Reserve with grand jury subpoenas “threatening a criminal indictment” related to his June 2025 testimony before the Senate Banking Committee. That testimony addressed, in part, the multi-year renovation of the historic Marriner S. Eccles Building and the adjacent Federal Reserve East Building.

During his testimony, Powell denied the existence of luxury features such as private dining rooms, special elevators, rooftop gardens, and other high-end elements. The renovation project, originally estimated at approximately $1.9 billion, has ballooned to $2.5 billion amid questions about cost overruns.

In July 2025, U.S. Senate Committee on Banking, Housing and Urban Affairs Chairman Tim Scott (R-SC) sent a formal oversight letterto Powell highlighting discrepancies between the testimony and approved renovation plans, raising concerns about transparency and accountability for the multi-billion-dollar project. The letter points out that previously approved plans by the National Capital Planning Commission appear to reference some of the luxury features—raising questions about whether the plans changed, the features were removed, or the testimony was incomplete.

Trump administration officials, including then-Office of Management and Budget Director Russell Vought, sharply criticized the renovation project. Vought sent a letter  to Powell on July 10, 2025, questioning the project’s management and compliance with federal standards. Vought publicly compared aspects of the renovation to elements that belong in France’s “Palace of Versailles.”

In March 2026, U.S. District Chief Judge James E. Boasberg nullified the Justice Department grand jury subpoenas. Jeanine Pirro, U.S. attorney for the District of Columbia, announced that her office would seek reconsideration and plans to appeal the ruling.

“Hiding grand jury subpoenas only deepens suspicions and erodes trust in our financial institutions,” said Judicial Watch President Tom Fitton.

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