This bill aims to reduce the federal workforce to 90 percent of its size as of September 2025, with the reduction taking effect in fiscal year 2028. Federal agencies must report their current employee counts by October 2025, and the Office of Management and Budget will then set maximum staffing levels for each agency. Starting in mid-2026 through September 2027, agencies can only hire one new employee for every three who retire or leave, forcing a gradual workforce reduction. If an agency exceeds its maximum staffing level after 2028, it faces hiring freezes and restrictions on remote work approvals and official union time. The bill includes limited exceptions for national security or emergencies declared by the President, and requires that any reduction not be offset by increased government contracting unless cost comparisons show financial benefits.
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