SBA forced to cut 30% of DC staff, slash their pay, ban remote work
S. 298 — Returning SBA to Main Street Act · Filed by Joni Ernst (R-IA) · 2 cosponsors · Introduced Jan 29, 2025 · Reported out
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What it does
This bill requires the Small Business Administration to relocate at least 30% of its Washington headquarters employees to regional offices outside the DC area within one year, reduce headquarters office space by 30%, and eliminate full-time telework for relocated and remaining headquarters staff. The bill aims to decentralize the agency and reduce federal real estate costs, but employees relocated will have their pay adjusted downward to match their new locality and lose remote-work flexibility.
Why we flagged it
The bill's core mechanism is a mandatory relocation of federal employees and reduction of headquarters real estate, framed as cost-saving and service improvement. It is not a tax measure, subsidy, or commemorative act, but rather an administrative restructuring with significant labor implications.
What the text implies
- Pay locality adjustments will reduce compensation for relocated employees, effectively cutting salaries for workers moving to lower-cost regions—a hidden cost to federal workers not explicitly highlighted in the title.
- The bill eliminates private right of action and overrides collective bargaining agreements, removing employee legal recourse to challenge relocation decisions or negotiate terms—a significant shift in labor protections.
The full analysis lists 5 implications of this text.
Who stands to gain
Federal real estate market (reduced lease obligations); Regional office landlords (potential new tenants); Federal government (reduced headquarters overhead)