Sponsors
Introduced March 31, 2025 by Claudia Tenney · Last progress March 31, 2025
The bill increases oversight, transparency, and federal–state coordination of federal fund use (with potential taxpayer savings) but does so by mandating state-level entities and reporting that impose administrative costs, raise federalism concerns, and threaten funding for noncompliant states.
Taxpayers may see reduced waste and lower costs because States must establish independent review bodies to examine federal fund use, which could identify inefficiencies and save taxpayer dollars.
State governments will publish annual public reports increasing transparency about how federal funds are administered at the State level.
State and local governments (and the federal Department receiving reports) will have standardized reporting that can improve federal–state coordination on program efficiency and oversight.
States that do not create the required entity will lose discretionary federal funding starting in FY2026, putting state and local budgets at risk.
State governments will incur administrative costs to create and maintain the required commission, which could divert funds away from services.
State governments’ autonomy may be constrained because conditioning federal grants on creating this state-level structure raises federalism concerns about federal intrusion into State governance choices.
Based on analysis of 2 sections of legislative text.
Conditions discretionary federal funding on States creating and maintaining a state-level government-efficiency body with specified membership and annual reporting, beginning FY2026.
Requires that, beginning in fiscal year 2026, states must create and maintain a state-level department, agency, or commission of government efficiency to receive any discretionary federal appropriations (with a narrow security-category exception). Each state entity must have 10–20 members drawn equally from the state legislature’s majority and minority parties, publish an annual report on federal fund administration and waste/fraud/abuse on the state’s public website, and submit that report to the Presidential Executive Office’s Department of Government Efficiency. "State" includes the 50 states, the District of Columbia, and U.S. territories.