June 9, 2025
Mr. Steube introduced the following bill; which was referred to the Committee on Oversight and Government Reform, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
To eliminate wasteful bureaucracies, modernize government operations, reduce regulatory overreach, and strengthen accountability and efficiency across the Federal workforce, and for other purposes.
Section 1. Short title
This Act may be cited as the Federal Government Reform Act of 2025
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Sec. 2. Federal Government operations
(a) Elimination of the Federal Executive Institute
Not later than 90 days after the date of the enactment of this Act, the Director of the Office of Personnel Management shall permanently close the Federal Executive Institute located in Charlottesville, Virginia, and beginning on the date of such closure, no Federal funds may be obligated or expended for any activities of the Institute.
(b) Probationary period
(1) In general
Notwithstanding any other provision of law, rule, or regulation, the first year of service of an employee who is given a career or career-conditional appointment in the competitive service under the Civil Service Regulations is a probationary period when the employee—
(A)
was appointed from a competitive list of eligibles; or
(B)
was reinstated (including reinstatement from a Reinstatement Priority List), unless during any period of service that affords a current basis for reinstatement the employee completed a probationary period of at least 1 year or served with competitive status under an appointment that did not require a probationary period; provided that the date of reinstatement begins a new 12-month probationary period if one is required under this subsection.
(2) Certification
An individual shall not complete any probationary period under this subsection unless the employing agency certifies, within the 30-day period prior to the conclusion of period, that the continued employment of the individual is in the public interest. If such certification is not made, the employee shall be separated from the civil service.
(3) New position
A person who is required to go through a probationary period and then is transferred, promoted, demoted, or reassigned in accordance with the Civil Service Regulations before he or she completes such period is required to complete the remainder of the probationary period in the new position.
(4) USPS
Upon noncompetitive appointment to the competitive service under title 39, United States Code, an employee of the Postal Career Service (including a substitute or part-time flexible employee) who has not completed 1 year of Postal service shall serve the remainder of a 1-year probationary period in the new agency.
(5) Special appointing authority or conversion
A person who is appointed to the competitive service either by a special appointing authority or by conversion to a career or career-conditional appointment under the Civil Service Regulations must serve a 1-year probationary period unless specifically exempt from such period by the special appointing authority itself.
(6) Supervisors and managers
Employees promoted, transferred, or otherwise assigned, for the first time, to supervisory or managerial positions shall be required to serve a probationary period under terms and conditions prescribed by the Office of Personnel Management. If an employee is required to concurrently serve both a probationary period in a supervisory or managerial position under subpart I of part 315 of title 5, Code of Federal Regulations, and a probationary or trial period following initial appointment or reinstatement under this Civil Service Rule, the latter takes precedence and fulfills the requirements of this paragraph.
(c) Reducing overcriminalization in Federal regulations
(1) Agency reports to OIRA
Not later than one year after the date of the enactment of this Act, the head of each agency shall submit to the Administrator of the Office of Information and Regulatory Affairs a report that—
(A)
identifies any regulation that imposes a criminal penalty without clear statutory authority; and
(B)
makes recommendations about the repeal or revision of any such regulation.
(2) Restriction on criminal penalties in regulations
The head of an agency may not issue any regulation that includes a criminal penalty unless that same penalty or the specifics of that penalty has been described in statute.
(d) Efficiency in rule publication and digital modernization
(1) Digitization and automation of systems required
The Archivist of the United States, acting through the Director of the Federal Register, shall digitize and automate internal processes to reduce publication delays and dependence on outdated systems. In this paragraph, the term outdated system means a system that another agency has demonstrated the ability to perform digital and automated services in a timely manner.
(2) Benchmarks
Not later than 90 days after the date of the enactment of this Act, the Archivist of the United States, acting through the Director of the Federal Register, shall establish performance benchmarks to ensure publication of any proposed or final rule within the applicable statutory deadline or within 24 hours after the date on which any such rule is received by the Director.
(3) Annual compliance report
Not later than one year after the date of the enactment of this Act, and annually thereafter, the Archivist of the United States, acting through the Director of the Federal Register, shall submit to Congress a report on compliance with this subsection that includes average processing times and modernization progress.
Sec. 3. Modernizing payments to and from the treasury
(a) In general
The Secretary of the Treasury shall develop and implement new technologies and partnerships to improve the speed, security, and transparency of payments made to and from the Treasury.
(b) Requirements
The new technologies and partnerships developed and implemented under subsection (a) shall—
(1)
reduce reliance on paper-based transactions and information technology systems created before the year 2000; and
(2)
provide secure digital payment infrastructure for persons, businesses, and agencies.
Sec. 4. Implementation and oversight
(a) Oversight by OMB
The Director of the Office of Management and Budget shall oversee agency implementation of this Act.
(b) Agency compliance updates
The head of each agency affected by this Act shall submit to the Director of the Office of Management and Budget a quarterly update on any update, reform, and efficiency as a result of this Act.
(c) Implementation report required
Not later than 180 days after the date of the enactment of this Act, the Director of the Office of Management and Budget shall submit to Congress a comprehensive implementation report on each agency affected by the requirements of this Act.
Sec. 5. Agency; rule defined
In this Act, the terms agency and rule have the meaning given those terms in section 551 of title 5, United States Code.