Sponsors (2)
The bill seeks predictable, lower federal personnel costs and tighter justification for outsourcing to improve fiscal discipline and planning, but it risks reduced public services, fewer federal jobs and bargaining rights, diminished workplace flexibility, and potential contractor substitution that could undermine savings or service continuity.
Taxpayers: Federal payroll costs are likely to fall if agencies reduce staffing to 90% of their Sept 30, 2025 size, which could lower long‑term personnel spending.
Taxpayers and federal agencies: Agencies must perform cost comparisons before increasing service contracts, which can discourage costly outsourcing and help preserve cheaper in‑house expertise when appropriate.
Federal managers and employees: Clear limits on hiring and replacement rates give agencies predictable headcount targets, which can incentivize efficiency and improve workforce planning.
All citizens/taxpayers: Public services could be reduced or delayed if agencies cannot hire to replace separations, potentially worsening service quality and access.
Taxpayers and federal employees: Mandated workforce cuts increase the risk that agencies will substitute contractors for staff, which—if cost comparisons are narrow or poorly enforced—could raise long‑term costs and disrupt service continuity.
Federal employees: Fewer hiring opportunities and a higher likelihood of unfilled vacancies as agencies cut staffing to meet the 90% cap, reducing career prospects and workload relief.
Based on analysis of 2 sections of legislative text.
Introduced January 29, 2025 by Ron Johnson · Last progress January 29, 2025
Requires the President (through OMB, with OPM) to shrink the federal executive-branch workforce to no more than 90% of its size on September 30, 2025, with that cap effective in fiscal year 2028. Agencies must report headcounts by Oct 31, 2025; between Q2 FY2026 and Sept 30, 2027 they may replace no more than one new hire for every three separations, while OMB monitors progress and enforces limits on hiring, remote-work approvals, and increases in official time for agencies that exceed their caps. Includes notification deadlines, continuous quarterly monitoring, a presidential waiver for wars or major emergencies, counts employees as full-time equivalents (FTEs), excludes employee counts from collective bargaining, and restricts increased use of service contracts unless a cost comparison shows a government advantage. Transfers into compliant agencies are allowed.