Sponsors
The bill aims to reduce federal real estate costs and spur economic activity outside Washington by relocating agency functions, but it risks significant disruption to federal employees, potential short-term costs and DC-area economic harm, and possible impacts on government coordination and security.
Taxpayers could pay less over time because moving some federal headquarters functions out of the Washington, D.C. area may lower federal real estate and operating costs.
Communities that receive relocated headquarters may gain jobs and economic activity, benefiting local governments and regional labor markets outside the Washington metro area.
Requiring OMB and GSA certification of relocation plans creates formal oversight intended to ensure moves meet statutory requirements and account for costs and other impacts.
Many federal employees may be forced to relocate, face much longer commutes, or leave their jobs if they cannot move, disrupting careers and household finances.
Reducing the federal workforce presence in Washington could impair interagency coordination, reduce stakeholder and congressional access, and weaken interactions with diplomatic partners.
Transition costs such as moving, new leases, and severance payments could be substantial and may offset or delay any projected taxpayer savings.
Based on analysis of 2 sections of legislative text.
Requires most federal executive agencies to relocate headquarters outside the Washington, D.C. metro area, with plans due by Sept 30, 2026 and implementation by Sept 30, 2030.
Introduced February 21, 2025 by Warren Davidson · Last progress February 21, 2025
Requires most executive-branch agencies to develop, submit, and carry out plans to move their headquarters outside the Washington, D.C. metropolitan area. Agencies must submit certified relocation plans to Congress by September 30, 2026, and complete implementation by September 30, 2030, with no more than 10% of agency employees remaining in the Washington metro area. Adds certification roles for OMB and GSA to confirm plan compliance, requires agencies to maximize cost savings and consider national security, and repeals the statutory designation that names the District of Columbia as the seat of government of the United States. The Washington metropolitan area is defined to include D.C.; Montgomery and Prince George’s Counties (MD); and Arlington, Fairfax, Loudoun, Prince William Counties and the City of Alexandria (VA).