Does the Number of Federal Employees Need to Shrink by 10 Percent? (H.R. 417)

What is H.R. 417?

(Updated April 12, 2018)

This bill would seek to reduce the total number of federal employees by establishing a process for limiting new hires based on the number of workers who have retired or left their jobs. It would require a 10 percent reduction in the federal workforce, which would be maintained thereafter.

For every three federal employees that retire or leave their job, one new hire would be permitted. The Office of Management and Budget (OMB) would make an assessment each quarter whether new hires exceed the 1-to-3 ratio.

If the OMB finds that the ratio has been violated, a hiring freeze would go into effect until the ratio is back in compliance. To prevent vacated positions from being backfilled by service contracts, the decrease in federal employment would be matched by a decrease in service contracts procured.

There would be an exception, as the president could waive the rule because of war, national security, or an extraordinary emergency that threatens the life, health, safety, or property of Americans.

Argument in favor

The federal workforce is bloated, and to help bring the deficit under control the number of employees needs to be reduced. Doing so by attrition rather than laying off workers is the best way of going about it.

Argument opposed

Reducing the size of the federal workforce by 10 percent seems arbitrary, and there’s nothing stopping the government from spending that money elsewhere. Besides, wouldn’t it be better to just fire them right away?

Impact

Federal agencies whose workers retire or leave the service and hire new employees; and the OMB.

Cost of H.R. 417

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Sponsoring Rep. Cynthia Lummis (R-WY) introduced this bill, which she claims will save an estimated $35 billion over five years without having to force any current federal employees out of a job:

“Attrition is a solution that requires the federal government to do what any business, state, or local government would do to cut costs—limit new hires. Instead of blindly filling empty desks, this bill forces agencies to take a step back, consider which positions are crucial, and make decisions based on necessity rather than luxury. Real, productive job creation takes place on Main Street America not in the bloated federal government.”

This legislation has the support of eight cosponsors in the House, all of whom are Republicans.

Of Note: According to the Federal Times, this bill would, over time, reduce the size of the federal workforce by more than 200,000 employees.

Media:

• Sponsoring Rep. Cynthia Lummis (R-WY) Press Release
  
• Federal Times
  
• FedSmith
  
• FEDweek