# What This Bill Actually Does

This bill creates a new requirement for states: if you want to receive most federal funding, your state has to set up a special department or agency focused on finding waste and inefficiency in how the state spends that federal money. Think of it as creating a state-level watchdog specifically tasked with making sure taxpayer dollars aren't being wasted or misused. The federal government would essentially hold funding hostage until states comply—no efficiency department, no money.

The bill applies to most federal funding that states receive, with one major exception: money for defense, homeland security, veterans benefits, nuclear security, and international affairs programs are exempt from this requirement. So states wouldn't lose those particular funding streams if they don't create this new department. The idea behind the bill is that states need to actively police themselves and prove they're being good stewards of federal tax dollars.

Once a state sets up this efficiency department, it has to do real work. Every year, the department must write a report detailing what it found, what waste or problems it uncovered, and what suggestions it has for improving how federal money is spent. These reports have to be submitted to a federal Department of Government Efficiency (a new entity mentioned in the bill) and also posted publicly on the state's website so citizens can see what's happening.

For everyday people, this could mean either more accountability in how your state government spends federal money, or it could mean your state has to spend resources creating a new bureaucracy to satisfy a federal requirement. Whether that's a net positive depends on whether the new department actually finds real problems and saves money, or just becomes another layer of government doing paperwork.

State-Level DOGE Establishment Act

Tenney, Claudia

State-Level Departments of Government Efficiency Establishment Act or the State-Level&nbsp;DOGE Establishment ActThis bill requires states that receive certain federal funds to establish and maintain a government efficiency department, agency, or commission.Specifically, the bill prohibits certain discretionary appropriations from being disbursed to any state that has not established and maintained a government efficiency department, agency, or commission to review the efficacy of the state’s administration of federal funding and to eliminate waste, fraud, and abuse of taxpayer funds.This requirement does not apply to discretionary appropriations within the security category, which includes appropriations associated with the budgets&nbsp;for the Department of Defense, the Department of Homeland Security, the Department of Veterans Affairs, the National Nuclear Security Administration, the intelligence community management account, and international affairs.&nbsp;The bill also requires a state government efficiency entity established under this bill to submit to the Department of Government Efficiency within the Executive Office of the President an annual report that (1) details the entity’s work, and (2) provides legislative and operational suggestions and recommendations to improve the efficiency of expenditures of federal funds. The report must also be published on the state's public website.&nbsp;