The headline from a trade publication was: “US has now canceled about one in 10 active federal commercial real estate leases.”
That news directly impacts Davis, as the Trump administration has now reportedly cancelled the US Army Corps of Engineers, Institute for Water Resources, Hydrologic Engineering Center (HEC).
The abrupt decision not only jeopardizes a long-standing institution central to water resources research, but also threatens the broader engineering and hydrology ecosystem in Davis, which has relied on the center’s presence for decades.
With an 11,180-square-foot space in the Brinley Building and an annual lease of over $500,000, the HEC has played a vital role in supporting water resources engineering, flood modeling, and environmental planning. Its closure comes as part of a sweeping federal government initiative spearheaded by the Department of Government Efficiency (DOGE), which has terminated roughly 10% of all active federal commercial real estate leases, including crucial research and training facilities across the nation.
For Davis, a city deeply intertwined with UC Davis, the loss of the HEC could have far-reaching economic and academic consequences. The center has long served as a hub for engineers, hydrologists, and scientists who conduct critical research on water management, a topic of increasing importance given California’s ongoing drought challenges and climate change concerns.
Local engineering and hydrology firms have also relied on the HEC for collaboration, workforce development, and research partnerships. The center has historically drawn scholars, federal employees, and trainees to Davis, contributing to the local economy through hotel stays, dining, and other business activities.
Without this influx, Davis businesses could see a decline in revenue, compounding economic difficulties in a city that already faces challenges due to rising costs and a shifting real estate landscape.
“The cancellation of the HEC lease is a devastating blow to Davis and the broader UC Davis research ecosystem,” said a local engineering consultant. “This center was not just an office space; it was a vital intellectual and economic engine.”
The decision raises concerns about the long-term viability of similar federal research centers, particularly as DOGE continues its aggressive cuts across the country. Experts warn that such moves could destabilize industries that rely on federal research funding and facilities.
The lease termination at HEC is part of a larger trend of federal funding cuts targeting scientific research institutions. UC Davis, one of the nation’s top research universities, is already grappling with severe financial losses due to Trump administration policies, including drastic cuts to the National Institutes of Health (NIH) and the National Science Foundation (NSF).
A recent analysis by the NY Times estimates that UC Davis is set to lose $49 million in NIH funding due to proposed reductions in indirect research costs. These cuts threaten critical medical research initiatives, faculty positions, and support for graduate students working on projects ranging from cancer treatment to agricultural sustainability.
Moreover, the NSF has faced a 10% reduction in its workforce, including the firing of key personnel in its Office of Polar Programs. This downsizing affects researchers studying climate change in Antarctica, including UC Davis’ own Dr. Dawn Sumner, a planetary scientist who has conducted extensive research on microbial ecosystems in extreme environments.
“The only way the U.S. maintains a presence in Antarctica is through science,” Sumner said in an interview with the NY Times in response to the NSF layoffs. “If we slash funding for polar research, we’re not just weakening science; we’re giving up strategic ground in an area where other nations, including China and South Korea, are rapidly expanding.”
Beyond the direct impact on research and academia, the termination of the HEC lease is part of a broader rollback of federal offices in smaller cities. DOGE, under the leadership of billionaire Elon Musk, has sought to eliminate federal lease agreements that it deems unnecessary. However, critics argue that the administration’s approach has been haphazard, with no clear strategy for preserving vital research centers.
“One of the primary issues is that GSA/DOGE’s chosen order of operations presents as chaos, not logic,” said Chad Becker, a real estate consultant, in an interview with CoStar News. “We would like to believe that those making decisions at DOGE are approaching this from a thoughtful and logical perspective, but that simply doesn’t appear to be the case.”
The rapid acceleration of lease terminations—more than 500 in just one week—has left many communities scrambling. In Davis, there is no immediate plan for relocating the HEC’s operations, raising concerns about the future of the center’s employees and the projects they oversee.
The loss of the HEC is particularly troubling, given California’s urgent need for advanced water management solutions. The center has been instrumental in developing flood risk models, analyzing drought resilience strategies, and improving water distribution systems. Its research has informed state and federal policies on water conservation, an increasingly critical issue as the state faces prolonged droughts and shifting climate patterns.
With the HEC gone, UC Davis researchers and state agencies may struggle to fill the void. While UC Davis has its own robust water research initiatives, the HEC provided a direct link to federal resources and national expertise that is not easily replaced.
“The Hydrologic Engineering Center played a pivotal role in advancing water management strategies that benefit not just California, but the entire nation,” said a UC Davis hydrology professor. “Losing it now, when we are facing unprecedented water challenges, is incredibly short-sighted.”
The Trump administration has framed the lease cancellations as a cost-saving measure, with DOGE claiming to have saved approximately $660 million in taxpayer dollars through lease terminations. However, many experts argue that these cuts will lead to higher costs in the long run.
Gordon Griffin, a government contracts attorney, warned that the sweeping lease cancellations could backfire. “Given the broad brush approach to terminating leases, it’s possible that the government will need to negotiate new leases at higher rates,” he said.
In Davis, the sudden termination of the HEC lease leaves the future of the Brinley Building uncertain. While property owners may seek new tenants, the specialized nature of the space could make it difficult to find a replacement that brings the same level of economic and intellectual activity to the community.
The loss of the HEC in Davis raises larger questions about the Trump administration’s commitment to scientific research and infrastructure investment. As the administration continues its campaign to shrink the federal government, the consequences are being felt at the local level—particularly in university towns like Davis, where research funding and federal partnerships are integral to the local economy.
For UC Davis, the dual blow of federal lease cancellations and NIH cuts could stifle innovation and limit opportunities for students and faculty. Research institutions across the country are already bracing for further reductions, with many seeking alternative funding sources to sustain their work.
Local leaders and university officials are now looking for ways to mitigate the impact of these cuts. Some are calling on state lawmakers to step in with emergency funding to support affected research programs. Others are urging the federal government to reconsider its approach to lease terminations, particularly for facilities that serve a clear public interest.
For now, however, the loss of the HEC serves as yet another example of how federal cost-cutting measures can have unintended—and deeply damaging—consequences for communities that rely on research and innovation to drive their economies.
Note to the commenters: this is a Davis article – either post it on another article or make it relate specific to Davis. Not getting into partisan flame wars on local articles.
“The Trump administration has framed the lease cancellations as a cost-saving measure, with DOGE claiming to have saved approximately $660 million in taxpayer dollars through lease terminations. However, many experts argue that these cuts will lead to higher costs in the long run.”
Many experts argue? Tell us how these cuts will lead to higher costs in the long run.
One example which is local…
The closure of the HEC in Davis, a key institution in hydrologic engineering, means losing experienced personnel and disrupting long-standing research and training programs. This will force future administrations to rebuild expertise from scratch, which is far more expensive than maintaining existing infrastructure.
Recruitment and Training Costs: Specialized expertise, once lost, is difficult and costly to replace. The government may need to hire and train new employees or contract expensive private firms to fill the knowledge gap.
Loss of Institutional Knowledge: When agencies are disbanded or relocated, decades of research, data, and institutional knowledge may be lost or take years to rebuild.
The U.S. Army Corps of Engineers Hydrologic Engineering Center (HEC) is a specialized research and development center focused on hydrology, hydraulics, and water resource engineering. Located in Davis, California, HEC develops advanced computer models and analytical tools used by engineers, scientists, and policymakers to manage flood control, water supply, reservoir operations, and environmental restoration.
Key Functions of HEC:
1. Developing Water Management Software – HEC creates industry-leading hydrologic and hydraulic modeling software, such as HEC-RAS (for river analysis and floodplain mapping) and HEC-HMS (for rainfall-runoff modeling), which are used worldwide.
2. Flood Risk Assessment and Mitigation – The center plays a critical role in floodplain mapping and forecasting, helping communities and government agencies prepare for and mitigate flooding disasters.
3. Reservoir Operations and Water Supply Planning – HEC supports the management of reservoirs and dams, optimizing water use for drinking supply, agriculture, and power generation.
4. Environmental and Climate Impact Studies – The center provides modeling tools to assess the impacts of climate change, habitat restoration, and ecosystem sustainability.
5. Training and Technical Support – HEC provides training programs for engineers and water managers across the U.S. and internationally, ensuring effective use of hydrologic modeling tools.
Why HEC Matters:
HEC’s work is critical for national flood protection, water sustainability, and disaster preparedness. It supports federal, state, and local agencies in making data-driven decisions to reduce flood damage, optimize water resources, and protect the environment. Its closure or relocation would impact both the scientific community and local economies, particularly in Davis, which has a strong concentration of water resource engineers and environmental scientists who rely on HEC’s research and training programs.
Things have to get cut back somewhere. We’re heading to a fiscal cliff as a country. Status quo doesn’t work anymore.
Crippling research and technology by cutting NSF grants? That doesn’t seem like a recipe for keeping the country from falling off the cliff, it seems like a recipe for pushing it into the abyss. You’ll see my article tomorrow, they may be cancelling graduate school in science disciplines in Davis (and across the country), that might be the straw that sets us into an irreversible course. Granted that’s worst case scenario, but it’s now in the realm of possibility.
And by the way, none of this is going to even move the needle on the deficit. It is however going to tank the economy that you seemed so concerned about at various points in time.
“Granted that’s worst case scenario”
Yes I agree, you’re always going to give the worst case scenario when it comes to the Trump admin making cuts.
And you’re going to ignore the rest of what I said.
Tell us why they need to cut back somewhere Keith. Instead of alternative of taxing Billionaires that is…
David says: “And by the way, none of this is going to even move the needle on the deficit. It is however going to tank the economy that you seemed so concerned about at various points in time.”
That’s what they say about school closures, as well.
Apparently, the only thing that saves money is closing down prisons, per the argument presented on here.
(For the record, I don’t support what DOGE and Trump are doing, however. The reason being that there’s no (or very little) analysis.
“It is however going to tank the economy that you seemed so concerned about at various points in time.”
That’s what was said when Trump won the 2016 election. The economy ended up doing fine.
Show me the quote
I asked the Whopper, which seems to be the modus operandi on here these days:
In the lead-up to the 2016 U.S. presidential election, many economists and analysts expressed concerns that a Donald Trump victory could negatively impact financial markets. A study by Dartmouth College’s Eric Zitzewitz and the University of Michigan’s Justin Wolfers indicated that markets favored a Hillary Clinton presidency, suggesting that a Trump win might lead to significant market declines.
POLITICO.COM
On election night, as results began to favor Trump, global markets reacted with volatility. However, by the following morning, U.S. stock markets stabilized and reacted calmly to the news.
THEGUARDIAN.COM
In the subsequent months, contrary to some predictions, the markets experienced a notable rally, with the S&P 500 rising over 50% during Trump’s term.
REUTERS.COM
In summary, while there were initial concerns about a potential market crash if Trump were elected, the markets ultimately performed strongly during his presidency.
There are already signs Trump is tanking economy Keith. And there are no adult around Mr T. Take 2.
But let’s book mark that prediction…
One thing I’ve learned about Trump and something that democrats should realize, Trump always lands on his feet. Never doubt Trump.
I wouldn’t consider 6 bankruptcies as landing on his feet. He’s a con man that has conned many into believing his alternative facts.