Banking and Finance Law Daily Wrap Up, FEDERAL RESERVE SYSTEM—FOIA complaint filed over Fed headquarter renovation project subpoenas, (Apr 7, 2026)
Organizations Mentioned:Judicial Watch, Inc. | U.S. Department of Justice
Judicial Watch filed the complaint related to judicial subpoenas over the Fed’s $2.5 billion renovation project.
Nonprofit watchdog Judicial Watch has filed a complaint under the Freedom of Information Act (FOIA) in the U.S. District Court for the District of Columbia against the Federal Reserve Board for failing to produce grand jury subpoenas served in connection with allegations that Fed Chair Jerome H. Powell may have misled Congress about a $2.5 billion renovation of the Fed headquarters. (Judicial Watch Inc. v. Board of Governors of the Federal Reserve System (No. 1:26-cv-01113)).
“Hiding grand jury subpoenas only deepens suspicions and erodes trust in our financial institutions,” said Judicial Watch President Tom Fitton.
Judicial Watch filed the action after the Fed failed to comply with Judicial Watch’s Jan. 26, 2026, FOIA request seeking access to the subpoenas issued by the U.S. Department of Justice. The nonprofit watchdog alleges the Fed improperly denied and then delayed a final determination on a FOIA request seeking records related to grand jury subpoenas reportedly served by the Department of Justice.
Relief sought. Judicial Watch is asking the court to order the Federal Reserve to conduct a search reasonably calculated to uncover all records responsive to the FOIA request. The organization also seeks an order requiring the agency to produce all nonexempt responsive records by a specific date. In addition, the complaint requests a Vaughn index identifying any records withheld under claims of exemption, an injunction barring the continued withholding of nonexempt records, and an award of attorneys’ fees and litigation costs under FOIA.
The grand jury subpoenas were related to Powell’s June 2025 testimony before the Senate Banking Committee. That testimony addressed, in part, the multi-year renovation of the historic Marriner S. Eccles Building and the adjacent Federal Reserve East Building. According to the complaint, Chair Powell stated on Jan. 11, 2026, that the Department of Justice had served the Federal Reserve with grand jury subpoenas on Jan. 9, 2026, “threatening a criminal indictment” tied to his prior testimony before the Senate Banking Committee in June. In response to those statements, Judicial Watch submitted a FOIA request to the Fed on Jan. 26, 2026, seeking access to the subpoenas referenced by Powell. On Feb. 13, 2026, the Fed denied the FOIA request. Judicial Watch appealed the denial on Feb. 17, 2026.
The complaint alleges that on Mar. 17, 2026, the Fed extended the deadline for issuing a final determination on the administrative appeal to Mar. 31, 2026. As of the date the lawsuit was filed, Judicial Watch says the agency had not issued a final determination.
Judicial Watch argues that the failure to issue a timely final decision violates FOIA and effectively exhausts the organization’s administrative remedies, allowing it to seek judicial relief.
The complaint asserts a single cause of action for violation of FOIA, alleging that the Fed’s handling of the request and appeal is unlawful. Judicial Watch claims it has been, and will continue to be, irreparably harmed by the agency’s failure to comply with FOIA’s requirements.
Attorneys: Michael Bekesha, Office of the General Counsel, for Judicial Watch, Inc.
Companies: Judicial Watch, Inc.
LitigationEnforcement: DirectorsOfficersEmployers FederalReserveSystem