Sponsor
Claudia Tenney
Representative · R-NY
Representative · R-NY
The bill aims to improve oversight of federal funds and potentially save taxpayer dollars by requiring state review entities, but it imposes administrative costs, creates the risk of funding penalties for noncompliant states, and may politicize or delay oversight efforts.
State governments will have dedicated independent review entities that examine the administration of federal funds, identify waste/fraud/abuse, and recommend reforms to improve program efficiency.
Taxpayers could benefit from reduced waste, fraud, and abuse if States adopt the recommended reforms, improving fiscal efficiency and potentially lowering unnecessary spending.
States that do not create the required review entity risk losing discretionary federal funds beginning in FY2026, which could reduce state budgets and services for residents.
Creating, staffing, and maintaining the new review entities — plus complying with annual federal reporting — will impose upfront and ongoing administrative costs and workload on state (and some local) governments.
Mandating equal partisan membership and related appointment rules could politicize oversight, delay timely action, or leave entities nonfunctional if appointments stall.
Based on analysis of 2 sections of legislative text.
Conditions most discretionary federal funding on states creating a bipartisan state-level department/agency/commission of government efficiency and submitting annual reviews beginning FY2026.
Conditions most discretionary federal grants and appropriations (starting in FY2026) on each State, DC, and U.S. territory creating and maintaining a state-level "department, agency, or commission of government efficiency." Each state entity must be 10–20 members with equal representation from the majority and minority parties in the state legislature, produce an annual public report reviewing state administration of federal funds, and submit that report to a federal Department of Government Efficiency. Security-category appropriations are excluded.
Official title: To condition the disbursement of Federal funds to any State on such State establishing a department, agency, or commission of government efficiency, and for other purposes.
Introduced March 31, 2025 by Claudia Tenney · Last progress March 31, 2025