HR 2523119th CongressIn Committee

State-Level DOGE Establishment Act

Introduced: Mar 31, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

This bill would condition federal funding to states on creating and maintaining a State-level Department/Agency/Commission of Government Efficiency (referred to as DOGE). Beginning in FY2026 and every fiscal year thereafter, no discretionary federal funds could be disbursed to a state unless it has established such an entity. An exception applies to discretionary funds categorized as “security” funding. The DOGE must have 10–20 members, include equal numbers from the majority and minority parties in the state legislature, and publish an annual report (on the state website and to a federal Office of Government Efficiency) detailing its work to review how federal funds are administered and to recommend ways to improve efficiency, reduce waste, and curb fraud and abuse. The bill would apply to all states, the District of Columbia, and U.S. territories. In short, the bill creates a federally linked governance watchdog at the state level and ties ongoing federal funding to the existence and activity of that watchdog, with a focus on improving how federal dollars are spent.

Key Points

1Condition on federal funding: Starting in FY2026, discretionary federal appropriations to each state (excluding security funds) can be disbursed only if the state has established a DOGE.
2State-Level DOGE structure: Each state must establish a department/agency/commission of government efficiency with 10–20 members and an equal number of members from the majority and minority parties in the state legislature.
3Reporting requirements: The DOGE must publish an annual report on the state’s public website and submit it to the federal Department of Government Efficiency within the Executive Office of the President. The report must detail the DOGE’s work and provide legislative and operational recommendations to improve federal-fund efficiency.
4Purpose and powers of the DOGE: The DOGE is tasked with reviewing how the state administers federal funding and eliminating waste, fraud, and abuse, while offering recommendations to improve expenditure efficiency.
5Scope and definitions: The term “State” includes the several states, the District of Columbia, and U.S. territories; discretionary funding is defined with an exception for funds in the security category.

Impact Areas

Primary group/area affected: State governments and state taxpayers. States would need to create and maintain a DOGE, which could require budget allocations, staff, and administrative resources; taxpayers could see shifts in how federal funds are monitored and spent at the state level.Secondary group/area affected: Federal fund-disbursing agencies and the executive branch. Federal agencies would operate under a new reporting obligation from the DOGEs and would adjust oversight to align with the states’ efficiency reviews.Additional impacts:- Political dynamics: The requirement for equal majority/minority party representation in the DOGE could influence how these bodies are formed and operate, potentially affecting cross-party collaboration at the state level.- Legal/constitutional considerations: The bill uses a blanket condition on federal funding to states, which is a common mechanism under Congress’s spending powers, but the specific governance structure (e.g., appointment rules, reporting to a federal department that does not currently exist as described) could raise questions about feasibility and challenges in implementation.- Administrative costs and transition: States would incur startup and ongoing operating costs to run a DOGE, and there may be transitional periods as states align with the new reporting requirements and structure.- Transparency and accountability: Public annual reporting and requirements to share recommendations publicly could enhance transparency in how federal funds are spent and improve accountability for efficiency.

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