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Federal Judge Halts Move Of FBI Headquarters To Ronald Reagan Building Rather Than Maryland

Zero Rss
1 month 4 weeks ago
Federal Judge Halts Move Of FBI Headquarters To Ronald Reagan Building Rather Than Maryland

Authored by Matthew Vadum via The Epoch Times,

A federal court on Aug. 17 blocked a Trump administration plan to move the proposed new FBI headquarters to the Ronald Reagan Building in Washington instead of a site in nearby Greenbelt, Maryland, that was chosen in 2023.

The former United States Agency for International Development building is seen at the Ronald Reagan Building and International Trade Center in Washington, DC, on July 08, 2025. Kayla Bartkowski/Getty Images

Congress passed laws requiring the General Services Administration (GSA), which manages the federal government's real estate holdings, to select a site for the project from among three suburban sites outside of Washington: Greenbelt; Landover, Maryland; or Springfield, Virginia. In 2023, GSA chose Greenbelt.

However, in July 2025, the Trump administration jettisoned those plans and said it would be more cost-effective to move the FBI to the Reagan Building, which houses U.S. Customs and Border Protection and, until last year, the U.S. Agency for International Development.

U.S. District Judge Theodore Chuang ruled in favor of the state of Maryland and Prince George's County, finding the federal government illegally scrapped the plan to build the facility in Greenbelt, and reprogrammed funds Congress already approved for the project to an alternate location.

Chuang said choosing the Reagan Building ran afoul of legislation Congress approved in 2022 and 2023 that directed the GSA to select one of three sites.

"Notably, the text provides no conditions under which the selection could be unilaterally rescinded or switched to a nonconforming site," Chuang said in his written opinion.

"Had Congress sought to make the location restriction associated with the site selection provisional or qualified, it could have done so," the judge said.

Because the Trump administration did not have authority to choose the Reagan Building, it could not lawfully reprogram $555 million in previously appropriated funds to prepare that site, he said.

The federal government's decision to reprogram the funds was "arbitrary and capricious" because it was based on a misinterpretation of existing law "under which the FBI erroneously concluded that the FBI and the GSA had the authority to select the Reagan Building as the site for the consolidated FBI headquarters," the judge said.

The court vacated the reprogramming and site selection decisions and issued a permanent injunction blocking the government from implementing the Reagan Building plan or reprogramming the funds.

Maryland Gov. Wes Moore, a Democrat, hailed the new court ruling.

"From the beginning, we said the decision to move the FBI headquarters to Greenbelt was final, earned, and the Trump Administration's attempt to overturn it was illegal and wrong for our national security. Today, the court agreed," Moore said in a statement.

"Now it is time to stop the games and get to work building the world-class FBI headquarters that our public servants deserve, where it belongs: in Prince George's County, Maryland."

The Epoch Times reached out to the U.S. Department of Justice for comment. No reply was received by publication time.

Reuters contributed to this report.

Tyler Durden Tue, 08/18/2026 - 13:45
Tyler Durden

"Strain Is Spreading": FT Exposes Private Credit Distress At Decade Highs

Zero Rss
1 month 4 weeks ago
"Strain Is Spreading": FT Exposes Private Credit Distress At Decade Highs

Since last fall, we have repeatedly flagged the private credit sector’s growing vulnerabilities.

Earlier coverage detailed how the asset class ballooned into a $2-3 trillion opaque market after banks retreated from riskier lending, only to face a wave of high-profile defaults (First Brands, Tricolor), surging redemptions that forced gates at major vehicles, rising PIK usage, and AI-related risks to software-heavy portfolios.

In February, the red flag got about as red as it gets...

But, as a wave of private-credit providers unleashed their PR teams - and the story slipped off the lips of the TV talking-heads - it remains top of mind for traders, as we most recently noted:

Which leads us to a new story this morning from The Financial Times which underscores that the pressure is no longer contained.

“Strain is spreading across private credit portfolios, with some of the largest funds taking writedowns and warning about problem loans as the industry faces its biggest challenge in almost a decade,” the FT reports.

An analysis of Solve data shows that the value of troubled loans held by some of the biggest private debt investors has reached levels last seen in 2017, when the industry was dealing with a hangover from an oil price crash.

Loans placed on non-accrual status by the 20 largest publicly traded business development companies (BDCs) climbed to a median 2.8% of their cost in the second quarter, up from 2% at the end of March.

The non-accrual demarcation signals that borrowers have either stopped making payments or that a fund believes a borrower may soon default.

David Golub, co-chief executive of Golub Capital, told investors earlier this month that there was “elevated credit stress” as the industry grappled with a rise in defaults and problem loans.

“We’re in a credit cycle,” Golub said.

“Others denied it for a while. I don’t think there’s a lot of denial any more.”

Fitch Ratings warned last week that private credit defaults had hit a new record in July.

PitchBook LCD data showed the biggest publicly listed BDCs shrank again in the second quarter as funds were hit with impairments and as sales and repayments of loans outpaced commitments on new deals. Listed vehicles managed by KKR and Blue Owl, as well as Apollo’s MidCap Financial, were among those in which repayments outstripped new lending. FS KKR Capital Corp reported that 7.1 per cent of its loan book was troubled in the second quarter - still far above the industry average.

Much of the pain is concentrated in loans extended between 2020 and 2021, when rates were near zero and private equity valuations were elevated.

Higher borrowing costs have “starved some businesses from investing,” said Bryan High of Barings.

“They are using all the cash they are generating to pay interest to lenders and so growth for some businesses wasn’t as strong as it could be.”

Concrete examples include Blackstone and KKR marking down their loan to software group Medallia (Blackstone’s fund marked it at less than 50 cents on the dollar at end-June, down from 60 cents in March) after Thoma Bravo handed the business to lenders. Ares wrote down its loan to Cornerstone OnDemand, while Blackstone and KKR took over dental services company Affordable Care after default.

Industry titans acknowledge that bankruptcies and restructurings are moving back toward long-term averages.

“We are… conserving our capital, maintaining ourselves in a more defensive and risk-averse posture,” said Armen Panossian of Oaktree’s credit arm.

“We really want to be able to lean into the market on the back of what we think will be more volatility… Beneath the surface, there’s cause for concern.”

Others remain more sanguine.

Craig Packer of Blue Owl said “credit metrics are healthy and the issues we are managing remain isolated.”

Jim Miller of Ares noted that borrowers were in “solid” shape with interest coverage and leverage “generally consistent with our five-year average.”

Yet the FT confirms our ongoing warnings that some of this optimism “belies the complicated picture ahead,” particularly for software companies facing uncertain durability of growth amid the AI shift, and for funds still digesting the 2020–21 vintage.

The sell-off in BDC share prices has been sharp - KKR and BlackRock vehicles down more than 15% over the past year, Apollo’s down 14.5% - leaving some funds “priced for death,” according to Oppenheimer analyst Mitchel Penn.

BlackRock’s TCPC sold a $523 million block of loans and is exploring options that could include winding the vehicle down; KKR’s troubled vehicle has waived some incentive fees.

Penn’s research showed that on average over the past five years, bottom-quartile funds generated returns on equity below the yield on a 10-year Treasury.

“Underwriting wasn’t as good as it should have been,” he said. “They weren’t as picky.”

Taken together with our earlier reporting on redemption pressure, opacity, and early defaults, the FT data shows the credit cycle is firmly underway and the situation continues to deteriorate.

This latest report from The FT update builds on our prior observations: underwriting standards loosened during the boom, higher rates are now “starving” cash-flow coverage for many borrowers, and the liquidity mismatch between semi-liquid vehicles and illiquid loans is amplifying pressure.

The bottom-line is simple: the situation in private credit continues to worsen.

Tyler Durden Tue, 08/18/2026 - 13:25
Tyler Durden

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