State-Level DOGE Establishment Act

Summary

Conditions receipt of most discretionary federal funds on each State creating and maintaining a State-level “department, agency, or commission of government efficiency” that reviews how federal funds are administered and issues annual reports with recommendations to reduce waste, fraud, and abuse. The requirement takes effect in fiscal year 2026 and applies to the 50 States, the District of Columbia, and U.S. territories, but excludes federal funds in the security category defined at 2 U.S.C. 900(c). Each State entity must have 10–20 members with equal representation from the majority and minority parties of the State legislature, must publish an annual review of federal fund administration, and must submit that report to the Executive Office of the President’s Department of Government Efficiency. States must maintain these entities to continue receiving covered discretionary appropriations each year starting FY2026.

• Conditions most discretionary federal funding on each State creating a State-level government efficiency entity starting in FY2026.
• Each required state entity must have 10–20 members with equal numbers from the state legislative majority and minority parties.
• States must annually publish and submit reviews of federal fund administration and recommendations to the Executive Office of the President’s Department of Government Efficiency.
• The condition applies to the 50 States, DC, and U.S. territories but excludes funds categorized as security under 2 U.S.C. 900(c).
• The bill does not appropriate federal money to set up or run these state entities—states bear establishment and maintenance costs.
• Failure to establish or maintain the entity can result in loss of covered discretionary federal appropriations for that State.
• The legislation sets membership and reporting requirements but leaves appointment mechanics and detailed staff/operational rules to the States.
• Reports are submitted to a federal office (Executive Office of the President’s Department of Government Efficiency), creating a federal oversight/monitoring connection.
• The requirement is recurring—states must maintain the entity every fiscal year to continue receiving covered discretionary funds.
• Administrative and compliance burdens fall primarily on state governments and could affect recipients of federal funds if states lose eligibility.