Sponsors
Introduced March 11, 2025 by Mark Alford · Last progress March 11, 2025
The bill aims to reduce federal headquarters footprint and standardize staffing and reporting—potentially saving money and increasing regional presence—while imposing rapid relocations, changing pay/telework rules, limiting legal challenges, and creating privacy and implementation burdens that significantly affect federal employees and local communities.
Taxpayers and federal agencies: reducing headquarters office footprint (targeting ~30% space cuts) is expected to lower ongoing rent and facility costs.
Federal employees, small-business owners, and rural communities: clearer, consistent definitions and reporting (headquarters status, 'rural' using Census definitions, and budget justification/headcount reporting) improve transparency and make program eligibility and funding disclosures more consistent.
Federal employees with disabilities: counting ADA telework accommodations toward staffing goals and reporting accommodation counts preserves headcount flexibility and helps oversight of ADA compliance.
At least 30% of headquarters employees: many will be required to change permanent duty stations within a year, creating major disruption to commutes, housing, family life, and job stability.
Relocated federal employees: many will face lower locality pay (reduced take-home pay) when moved to lower-cost localities, and classification rules for teleworkers could also change pay determinations.
Taxpayers and agencies: expected facility and relocation savings could be offset by substantial one-time costs for relocations, renovations, lease terminations, and potential litigation over preemption and definitions.
Based on analysis of 8 sections of legislative text.
Requires moving at least 30% of SBA headquarters staff out of the Washington area, cutting HQ space by 30%, changing pay locality and limiting full-time telework, and adding workforce reporting.
Requires the Small Business Administration to move at least 30% of its headquarters employees out of the Washington metropolitan area (if the Administrator finds it will reduce Federal costs), cut SBA headquarters office space by at least 30%, limit full-time telework for relocated staff, and add new workforce counts to the agency’s annual budget justification. The bill sets timelines for reports and implementation, forbids relocation incentives when an employee’s official worksite changes from their home to headquarters, preempts conflicting laws and labor agreements, and bars private lawsuits to challenge actions taken under the Act. The law defines key terms (telework, headquarters employee, rural, pay locality, etc.), requires a detailed report within 180 days, and establishes concrete deadlines: relocations within one year if justified, office-space reductions beginning within 180 days and completed within two years, and recurring workforce reporting in every budget justification thereafter.