H.R. 2523: State-Level Departments of Government Efficiency Establishment Act

This bill is titled the State-Level Departments of Government Efficiency Establishment Act. It proposes that, starting in the fiscal year 2026, no discretionary federal funds can be provided to any state unless that state has created a specific governmental agency or department focused on reviewing and improving the efficiency of how federal funds are managed.

Key Provisions of the Bill

• Condition on Federal Funding: The bill mandates that all states must establish a dedicated entity aimed at evaluating the effectiveness of federal funding administration. If a state does not comply with this requirement, it will not receive certain federal funds.
• Exclusions: The bill specifically excludes any discretionary federal appropriations related to national security from this requirement.
• Structure of the State-Level Agency: The required agency, department, or commission must:
  • Be staffed with a minimum of 10 and a maximum of 20 members.
  • Ensure an equal representation of members from both the majority and minority political parties in the state's legislature.
  • Publish an annual report on a public state website, which should detail its activities aimed at reviewing federal funding efficiency and offer suggestions for improvements in fund expenditure.

Definition of State

In this context, the term State includes all U.S. states, the District of Columbia, and U.S. territories.

Implications of the Bill

This legislation aims to promote governmental accountability by requiring states to actively monitor the use of federal funds, potentially reducing waste, fraud, and mismanagement. The establishment of these efficiency departments or agencies would be a prerequisite for receiving certain federal funds, meaning that states are incentivized to comply with the bill's requirements to maintain access to financial resources.

Relevant Companies

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