The federal government is canceling the search for a new FBI headquarters, according to officials familiar with the decision, putting a more than decade-long effort by the bureau to move out of the crumbling J. Edgar Hoover Building back at square one.
The decision follows years of failed attempts by federal officials to persuade Congress to fully back a plan for a campus in the Washington suburbs paid for by trading away the Hoover Building to a real estate developer and putting up nearly $2 billion in taxpayer funds to cover the remaining cost.
Officials from the General Services Administration, which manages federal real estate, said they plan to announce the cancellation in a phone call with bidders and in meetings on Capitol Hill on Tuesday morning. They spoke on the condition of anonymity because they were not authorized to disclose the decision before it was announced.
For years, FBI officials have raised alarms that the decrepit conditions at Hoover constitute serious security concerns. But the plan to replace the building grew mired in a pit of government dysfunction and escalating costs with no end in sight.
Officials and executives involved in the process also said a lack of permanent leadership at both agencies could have hindered the case for funding.