This bill requires the federal government to reduce its workforce to 90 percent of its current size by fiscal year 2028, affecting all Executive branch agencies and their career employees. Starting in the second quarter of fiscal year 2026, agencies can hire only one new employee for every three who retire or leave, creating a gradual workforce reduction over roughly two years. The Office of Management and Budget will establish individual hiring caps for each agency based on their September 2025 employment levels and monitor compliance quarterly, with agencies exceeding their caps facing restrictions on new hires, remote work approvals, and union time-off authorizations. The law includes narrow waivers for national security emergencies or extraordinary threats to public safety, and it prohibits agencies from simply replacing laid-off workers with outside contractors unless cost analyses justify the expense. The reduction timeline begins in 2026 with full compliance required by September 30, 2028.
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