BOZEMAN — The U.S. General Services Administration is selling the Federal Building and U.S. Post Office on Bozeman's East Babcock Street as part of a nationwide effort to reduce underused federal office space.
The agency says selling the property will remove financial liabilities and allow it to focus resources on its main missions.
The property sits in the heart of central Bozeman. Leaders believe redeveloping the site could boost the local economy.
No buyer has been chosen yet, and officials have not determined how the building will be used next.
The 97,000 square-foot facility on Babcock was built to replace the first federal building, which was constructed from 1912 -1915, located near Tracy Ave. That building now serves as the Southwest Montana Community Housing Trust and was used as a filming location for the movie 'A River Runs Through It.'
According to the GSA, construction of the building was completed in 1966, and it is listed on the National Register of Historic Places. In 2009, a modernization project focused on reducing the building's energy consumption by 20 percent as part of the American Recovery and Reinvestment Act (ARRA). That project was completed in 2011. The project installed occupancy sensors, changed out incandescent bulbs for LED bulbs, and replaced the HVAC system with a more efficient system.
In March 2025, MTN News reported that at least 12 government buildings were on the chopping block as part of President Donald Trump's efforts to reduce the size of the federal government.
WATCH: DOGE set to shut down multiple Montana government offices in effort to reduce federal spending (Mar. 6, 2025)
At that time, according to the Department of Government Efficiency, or DOGE, the Trump administration planned to shut down multiple Social Security offices, Border Patrol facilities, wildlife stations, and other buildings used for federal work across Montana—part of a massive cost-cutting campaign influenced by billionaire Elon Musk.
On April 23, 2026, the U.S. Postal Service issued a notice of potential relocation and a comment period after being informed the lease would not be renewed at the federal building. At this time, it's unknown where the potential relocation will be.
The Bozeman sale is part of a larger nationwide effort to eliminate underused federal office space and ensure taxpayers do not pay for empty buildings. According to a press release, since January 2025, the agency has sold more than 127 properties, bringing in $614 million. Those sales also saved more than $1 billion in maintenance and operating expenses. The agency eliminated another $867 million in costs through lease reductions.
Recent sales include 2 major buildings in Washington, D.C., as well as properties in Maine, Minnesota, Texas, California, and Tennessee.
The agency plans to sell more buildings in the future. Officials expect those future sales to save $5 billion.
Montana Sen. Steve Daines supports the Bozeman sale, calling it a great step forward for the downtown community. He expects the new property investment to have a positive impact on the state.
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