The bill redistributes federal jobs and services to expand regional economic activity and potentially cut long-term real-estate costs, but does so at the cost of significant near-term taxpayer expense, disruption for federal employees, and risk to agency experience and capacity.
Workers and local economies outside the D.C. area will gain jobs and economic activity as federal agencies move positions and offices to other regions.
Taxpayers and agencies could see lower long-term federal real-estate and operating costs if agencies consolidate or operate in lower-cost markets.
Local governments and communities will get a more geographically distributed federal presence, potentially improving regional access to federal services and decision-making.
Federal employees will face required relocation or job disruption, forcing moves or potential job loss for those unwilling/unable to relocate.
Taxpayers and agencies will incur substantial near-term relocation and implementation costs to move offices and staff.
Agencies and local governments risk losing experienced staff who are unwilling to move, reducing agency capacity and institutional knowledge.
Based on analysis of 2 sections of legislative text.
Introduced February 21, 2025 by Warren Davidson · Last progress February 21, 2025
Requires heads of most executive agencies to relocate their agency headquarters outside the Washington metropolitan area. Each agency must submit a certified plan by Sept 30, 2026 identifying a new non‑Washington‑area headquarters that maximizes cost savings, limits employees remaining in the Washington metro area to no more than 10%, and considers national security; plans must be certified by OMB and GSA and fully implemented by Sept 30, 2030. The bill also repeals the existing statutory provision at 4 U.S.C. §72.