“I am formally referring Jerome Powell to the DOJ over potential perjury connected to his controversial $2.5 billion building project,” Luna announced on X, marking her as the first lawmaker to pursue criminal proceedings against the Fed chairman for the renovation.
I am criminally referring Jerome Powell to the DOJ to investigate perjury regarding his crazy $2.5BN building.
— Rep. Anna Paulina Luna (@RepLuna) July 17, 2025
This referral is based on Powell’s testimony before the Senate Banking Committee on June 25, where he countered allegations of luxurious additions to the renovation. During his testimony, Powell assured legislators that the project would not include a “VIP dining room,” “new marble,” “special elevators,” or “roof terrace gardens,” despite these features being listed in the original 2021 planning documents submitted to the National Capital Planning Commission.
The renovation costs for the Fed building escalated from an initial forecast of $1.9 billion to $2.5 billion, provoking criticism from officials from Trump’s administration, who contend that Powell either provided inaccurate information to Congress or breached federal planning guidelines by altering approved designs without seeking reauthorization.
Office of Management and Budget Director Russell Vought has led the administration’s criticism, claiming Powell “grossly mismanaged” the project and violated the National Capital Planning Act. The administration argues this misconduct could justify Powell’s removal “for cause” – the only legal way to fire a Fed chair before their term ends.
Powell defended his testimony in a response letter, explaining that controversial features were eliminated after initial planning to “simplify construction and reduce the likelihood of further delays and cost increases.” The Fed says it voluntarily worked with the planning commission but isn’t legally required to seek approval for design changes it considers minor.
Criminal referrals are formal requests for a DOJ investigation but don’t require the department to pursue charges. The Justice Department hasn’t indicated whether it will investigate Luna’s allegations.
The building controversy marks another front in President Trump’s pressure campaign against Powell, whose Federal Reserve has kept interest rates steady despite Trump’s calls for cuts. With Powell’s term running through May 2026, the renovation has given the administration new ammunition against the Fed chairman.
