Sec. 2. Reduction in Federal workforce
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In this section— the term agency means an Executive agency, as defined in section 105 of title 5, United States Code; the term Director means the Director of the Office of Management and Budget; and the term Federal employee means an employee, as defined in section 2105 of title 5, United States Code, except that the term does not include a political appointee, as defined in section 709(d)(3) of the Homeland Security Act of 2002 ( 6 U.S.C. 349(d)(3) ). The President, through the Director (in consultation with the Director of the Office of Personnel Management), shall take appropriate measures to ensure that, effective beginning in fiscal year 2028, the total number of Federal employees in all agencies (as determined under subsection (c)) shall not exceed 90 percent of the total number of Federal employees in all agencies as of September 30, 2025 (as so determined).
Not later than October 31, 2025, the head of each agency shall submit to the Director a report identifying the total number of Federal employees employed by that agency, as of September 30, 2025. Not later than the last day of the first quarter of fiscal year 2026, the Director shall submit to the head of each agency a report that establishes the maximum allowable number of Federal employees that the agency may employ for the purposes of complying with subsection (b). During the period beginning on the first day of the second quarter of fiscal year 2026 and ending on September 30, 2027, in order to achieve the workforce reduction required by subsection (b), the Director (in consultation with the Director of the Office of Personnel Management) shall take appropriate measures to ensure that an agency may not appoint more than 1 individual for every 3 Federal employees retiring or otherwise separating from Government service.
The Director (in consultation with the Director of the Office of Personnel Management) shall take the following actions: During the period beginning on the first day of the second quarter of fiscal year 2026 and ending on the last day of fiscal year 2027, continuously monitor each agency to determine whether each agency is on track to be in compliance with the requirement under subsection (c)(2) for that agency, as of the first day of fiscal year 2028. Beginning on the first day of fiscal year 2028, continuously monitor each agency and make a determination regarding whether the total number of Federal employees employed by each agency exceeds the maximum number of Federal employees allowable for that agency under subsection (c)(2).
Whenever the Director makes a determination under paragraph
(2)that the total number of Federal employees employed by an agency exceeds the maximum number allowable for that agency under subsection (c)(2), provide written notice of that determination to the President and Congress not later than 14 days after the last day of the quarter in which the Director makes the determination. Whenever the Director provides written notice under subsection (e)(3) that the total number of Federal employees employed by an agency exceeds the maximum number allowable for that agency under subsection (c)(2), the following shall apply: The Director shall also provide written notice to the head of the agency that the total number of Federal employees employed by the agency exceeds the maximum number allowable for that agency under subsection (c)(2). Until the Director provides written notice to the President and Congress of a subsequent determination that the total number of Federal employees employed by that agency no longer exceeds the maximum number allowable under subsection (c)(2), the agency may not engage in any of the following: Appoint any individual to fill any vacancy within the agency. Appoint any individual to a position for which any amount of the job responsibilities are expected to be performed in a remote location with respect to the duty station for the position. Issue any approval for an existing Federal employee to increase the number of hours for which the Federal employee could perform the job responsibilities for the position of the Federal employee in a remote location with respect to the duty station for the position. Issue any approval of an increase in the amount of official time authorized for a Federal employee under section 7131 of title 5, United States Code. Any notice described in paragraph (1)(B) with respect to a subsequent determination shall be provided not later than 14 days after the last day of the quarter in which the subsequent determination is made. This section may be waived, with respect to a particular position or category of positions in an agency, upon a determination by the President that— the existence of a state of war or other national security concern requires such a waiver; or the existence of an extraordinary emergency threatening life, health, public safety, or property requires such a waiver. For purposes of this section, any determination of the number of Federal employees in an agency— shall be expressed on a full-time equivalent basis; and shall not be subject to any collective bargaining agreement. The President, through the Director (in consultation with the Director of the Office of Personnel Management), shall take appropriate measures to ensure that there is no increase in the procurement of service contracts by reason of the enactment of this Act, except in cases in which a cost comparison demonstrates that those contracts would be to the financial advantage of the Government. Nothing in this section may be construed to prohibit the ability of a Federal employee to transfer from a position in an agency to a position in another agency if that other agency is in compliance with the requirements of this section, as of the date on which that Federal employee transfers positions.
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Sec. 2
Reduction in Federal workforce
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