HR2027-119

What This Bill Does

The Returning SBA to Main Street Act of 2025 decentralizes the Small Business Administration workforce. It defines SBA headquarters employees to include employees stationed at headquarters and full-time teleworkers whose pay is based on the Washington-Baltimore-Arlington locality rate. If the SBA Administrator determines the move will reduce federal costs and explains that determination in a required report, the Administrator must move at least 30 percent of headquarters employees to SBA offices outside the Washington metropolitan area within one year. Relocated employees must be paid under the locality rate for the new duty station and cannot be authorized for full-time telework. The Administrator must promote geographic diversity, consider rural markets, and ensure staffing across SBA regions to improve in-person customer service.

Who Benefits and How

SBA field offices benefit because the bill pushes more permanent-duty employees into regional, district, and field locations. Small businesses outside the Washington metropolitan area benefit from the intended increase in in-person SBA customer service across the regions, including rural markets. Federal taxpayers may benefit if the Administrator's cost analysis shows savings from relocation and reduced headquarters space. The SBA Administrator receives stronger implementation authority because the Act supersedes conflicting laws and collective-bargaining agreements and bars private lawsuits challenging selections or relocation decisions.

Who Bears the Burden and How

SBA headquarters employees bear the largest direct burden because at least 30 percent may have their permanent duty station moved outside the Washington metropolitan area, lose Washington locality pay, and lose full-time telework authorization. The Small Business Administration must complete the relocation plan, reduce headquarters office space by at least 30 percent, and add annual budget-justification reporting on headquarters, field, district, regional, and telework staffing. Federal employee unions bear a bargaining burden because the Act supersedes collective-bargaining agreements and master labor agreements. DC commercial real estate owners could lose lease demand as SBA headquarters space shrinks. Employees seeking legal recourse face a barrier because the bill creates no private cause of action to challenge decisions under the Act.

Key Provisions

• Defines SBA headquarters employees, full-time telework, rural areas, pay locality, and the Washington metropolitan area rate of pay.
• Requires relocation of at least 30 percent of SBA headquarters employees outside the Washington metropolitan area within one year if the Administrator determines the move reduces federal costs.
• Requires relocated employees to receive locality pay based on the new permanent duty station and bars full-time telework authorization for those employees.
• Directs the Administrator to promote geographic diversity, consider rural markets, and ensure adequate staffing across SBA regions for in-person customer service.
• Requires SBA to reduce headquarters office space by at least 30 percent, starting within 180 days and finishing within two years.
• Requires annual budget-justification reporting to Congress on headquarters staffing, field and regional staffing, telework, office space, and cost effects.
• Supersedes conflicting laws and collective-bargaining agreements and bars private lawsuits challenging selections, changes, decisions, or actions under the Act.