Well I stand corrected. Evidently federal government can own land.
Federal Land OwnershipConstitutional Basis for Federal Land Ownership:
The Property ClauseThe U.S. Constitution addresses the relationship of the federal government to
lands. The Property Clause, Article IV, § 3, Clause 2, gives Congress authority over
the lands, territories, or other property of the United States. It reads:
The Congress shall have Power to dispose of and make all needful Rules and
Regulations respecting the Territory or other Property belonging to the United
States.
This provision provides broad authority for Congress to govern the lands
acquired by the federal government as it sees fit, and to exercise exclusive authority
to decide on whether or not to dispose of those lands. The U.S. Supreme Court has
described this power as “without limitation,” stating that:
while Congress can acquire exclusive or partial jurisdiction over lands within a
State by the State’s consent or cession, the presence or absence of such
jurisdiction has nothing to do with Congress’ powers under the Property Clause.
Absent consent or cession a State undoubtedly retains jurisdiction over federal
lands within its territory, but Congress equally surely retains the power to enact
legislation respecting those lands pursuant to the Property Clause.... And when
Congress so acts, the federal legislation necessarily overrides conflicting state
laws under the Supremacy Clause.
One authoritative commentary noted that:
No appropriation of public lands may be made for any purpose except by
authority of Congress.... Congress may limit the disposition of the public domain
to a manner consistent with its views of public policy.... It [the Property Clause]
empowers Congress to act as both proprietor and legislature over the public
domain; Congress has complete power to make those “needful rules” which in
its discretion it determines are necessary. When Congress acts with respect to
those lands covered by the [Property] clause, its legislation overrides conflicting
state laws. Absent action by Congress, however, states may in some instances
exercise some jurisdiction over activities on federal lands.5
Thus, it is accepted law that the federal government may own and hold property as
Congress directs.6 Issues such as whether some or all of the remaining federal lands
should be retained or divested, how to dispose of lands, or whether to acquire
additional federal lands, appear to be policy questions for Congress.