Federal Government Reform Act of 2025

The Federal Government Reform Act of 2025 aims to trim waste, speed government operations, curb regulatory overreach, and strengthen accountability across the federal workforce. Key changes include shutting down the Federal Executive Institute in Charlottesville, tightening probationary periods for new federal hires, and restricting the use of criminal penalties in regulations unless specifically authorized by statute. The bill also pushes digital modernization of rule publication and payment systems (including Treasury payments) and establishes strong oversight by the Office of Management and Budget (OMB) with regular agency updates and a comprehensive implementation report to Congress. If enacted, the measure would reduce traditional training and oversight structures, impose stricter probationary requirements for new hires, require agencies to address criminal penalties in regulations, accelerate and digitize rulemaking processes, and accelerate the move away from paper-based and older IT systems in federal payments. The overall effect would be to increase government efficiency and transparency but could raise early-stage compliance costs and require significant operational changes in HR, regulatory, and IT practices.