In a bold move aimed at decentralizing federal operations, Senator Joni Ernst (R-Iowa) has introduced legislation to relocate 30% of the Small Business Administration (SBA) workforce from Washington, D.C., to areas across the United States. The initiative, called the “Returning SBA to Main Street Act”, seeks to enhance efficiency, cut costs, and bring the agency closer to the small businesses it serves.
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Decentralizing Federal Agencies
This latest proposal builds on Ernst’s Strategic Withdrawal of Agencies for Meaningful Placement (SWAMP) Act, introduced in 2023, which advocated for relocating federal agency headquarters away from the nation’s capital. Ernst explained that the new legislation targets the SBA specifically, citing the need to address unused office space in Washington, D.C., and foster a closer connection between the agency and small businesses in rural and suburban markets.
“The best ideas come from the states, not Washington,” Ernst said in a statement to the Daily Caller News Foundation. “The SBA has lost sight of its mission, and the best way to help it rediscover that mission is to move it closer to Main Street, where it can better serve the people it’s meant to support.”
Key Provisions of the Legislation
The “Returning SBA to Main Street Act” outlines several critical measures to reshape the SBA’s workforce and operations:
- Geographic Diversity: The bill mandates the SBA to prioritize relocation to diverse regions, particularly rural areas, to better understand and serve the needs of small businesses across the country.
- Increased In-Person Support: Employees relocated from Washington, D.C., will be required to staff SBA offices across the nation, ensuring more robust face-to-face customer service.
- Telework Restrictions: To prevent inefficiencies linked to telework, the legislation prohibits relocated employees from being granted work-from-home privileges, reinforcing accountability and accessibility.
Addressing Inefficiencies
The legislation was motivated in part by concerns raised during a Senate Small Business and Entrepreneurship Committee hearing on September 19. Witnesses from Iowa highlighted difficulties in obtaining support from the SBA, which Ernst attributed to the lax telework policies instituted during the Biden administration.
In December, Ernst released a comprehensive 60-page report detailing her findings from investigations into telework practices across 24 federal agencies. The report criticized the impact of telecommuting on productivity and accountability, specifically noting the complexities caused by locality pay adjustments for federal employees working remotely in different regions.
“Federal employees working from home may be enjoying benefits out of step with private-sector counterparts, leading to inefficiencies in government operations,” Ernst noted.
Cutting Costs and Improving Service
By relocating SBA personnel to regional offices and optimizing the use of physical office spaces, Ernst believes the move could save taxpayer dollars while fostering stronger connections between the agency and small business owners.
“This legislation is a critical step toward fixing broken bureaucracy and making the federal government work for the American people again,” Ernst emphasized.
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Reactions to the Proposal
Supporters of the legislation applaud its focus on decentralization and accountability, arguing that relocating agencies like the SBA will empower local economies and enhance the agency’s mission. Critics, however, caution against the logistical challenges and potential disruptions to federal operations that such a move might entail.
A New Vision for Federal Agencies
Ernst’s proposal underscores a growing sentiment that federal agencies should be more aligned with the communities they serve. If passed, the “Returning SBA to Main Street Act” could set a precedent for relocating other federal departments, reshaping the landscape of government operations in the United States.
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