Returning SBA to Main Street Act of 2025 (H. Rept. 119–109)
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Summary
House Report 119–109 of the 119th Congress, submitted May 21, 2025 by Mr. WILLIAMS of Texas from the Committee on Small Business to accompany H.R. 2027, the Returning SBA to Main Street Act of 2025, with minority views. The committee reports the bill favorably with an amendment requiring the Small Business Administration Administrator to change the permanent duty station of not less than 30 percent of headquarters employees to locations outside the Washington metropolitan area. The amended text bars full-time telework for relocated employees, requires a report within 180 days, and directs a cut in headquarters office space of not less than 30 percent. The committee ordered the bill reported on April 30, 2025 by a roll call vote of 15 ayes to 11 nos. The minority views, signed by Ranking Member Nydia M. Velázquez, describe Democratic amendments that failed.
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119TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
1st Session 119–109
RETURNING SBA TO MAIN STREET ACT OF 2025
MAY 21, 2025.—Committed to the Committee of the Whole House on the State of
the Union and ordered to be printed
Mr. WILLIAMS of Texas, from the Committee on Small Business,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 2027]
The Committee on Small Business, to whom was referred the bill
(H.R. 2027) to require the Administrator of the Small Business Ad-
ministration to relocate 30 percent of the employees assigned to
headquarters to duty stations outside the Washington metropolitan
area, and for other purposes, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
CONTENTS
Page
I. Purpose and Bill Summary ........................................................................ 4
II. Need for Legislation .................................................................................... 4
III. Hearings ....................................................................................................... 5
IV. Committee Consideration ........................................................................... 5
V. Committee Votes ......................................................................................... 5
VI. Section-by-Section of H.R. 2027 ................................................................. 11
VII. Congressional Budget Office Cost Estimate ............................................. 12
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures 12
IX. Oversight Findings & Recommendations .................................................. 12
X. Performance Goals and Objectives ............................................................ 12
XI. Statement of Duplication of Federal Programs ........................................ 12
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits ..................................................................................................... 13
XIII. Federal Mandates Statement ..................................................................... 13
XIV. Federal Advisory Committee Statement ................................................... 13
XV. Applicability to Legislative Branch ........................................................... 13
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XVI. Statement of Constitutional Authority ...................................................... 13
XVII. Minority Views ............................................................................................ 14
59–006
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The amendment is as follows:
Strike all after the enacting clause and insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Returning SBA to Main Street Act of 2025’’.
SEC. 2. DEFINITIONS.
In this Act:
(1) ADMINISTRATION; ADMINISTRATOR.—The terms ‘‘Administration’’ and ‘‘Ad-
ministrator’’ mean the Small Business Administration and the Administrator
thereof, respectively.
(2) BUDGET JUSTIFICATION MATERIALS.—The term ‘‘budget justification mate-
rials’’ has the meaning given that term in section 3(b)(2)(A) of the Federal
Funding Accountability and Transparency Act of 2006 (31 U.S.C. 6101 note).
(3) EMPLOYEE.—The term ‘‘employee’’ has the meaning given that term in sec-
tion 2105 of title 5, United States Code.
(4) HEADQUARTERS EMPLOYEE OF THE ADMINISTRATION.—The term ‘‘head-
quarters employee of the Administration’’ means—
(A) an employee of the Administration whose permanent duty station is
at the headquarters of the Administration; or
(B) an employee of the Administration—
(i) who teleworks on a full-time basis; and
(ii) whose rate of pay is calculated based on the Washington metro-
politan area rate of pay.
(5) HEADQUARTERS OF THE ADMINISTRATION.—The term ‘‘headquarters of the
Administration’’ means the building serving as the principal managerial and ad-
ministrative center of the Administration in accordance with section 4(a) of the
Small Business Act (15 U.S.C. 633(a)).
(6) PAY LOCALITY.—The term ‘‘pay locality’’ has the meaning given that term
in section 5302 of title 5, United States Code.
(7) RURAL.—The term ‘‘rural’’ means any area that is not designated as an
urban area, based on the most recent data available from the Bureau of the
Census.
(8) TELEWORK.—The term ‘‘telework’’ has the meaning given that term in sec-
tion 6501 of title 5, United States Code.
(9) TELEWORK ON A FULL-TIME BASIS.—The term ‘‘telework on a full-time
basis’’ means that an employee is authorized to telework for 100 percent of the
work days of the employee per pay period.
(10) WASHINGTON METROPOLITAN AREA.—The term ‘‘Washington metropolitan
area’’ means the geographic area to which the Washington metropolitan area
rate of pay applies.
(11) WASHINGTON METROPOLITAN AREA RATE OF PAY.—The term ‘‘Washington
metropolitan area rate of pay’’ means the rate of pay in effect for the pay local-
ity designated as ‘‘Washington-Baltimore-Arlington, DC-MD-VA-WV-PA’’.
SEC. 3. RELOCATION OF EMPLOYEE.
(a) IN GENERAL.—Notwithstanding any other provisions of law, and not later than
1 year after the date of enactment of this Act, if the Administrator determines that
implementing the requirements under paragraphs (1) and (2) of this subsection will
reduce the cost to the Federal Government (which determination the Administrator
shall explain in detail in the report required under subsection (d) of this section)
the Administrator shall—
(1) change the permanent duty station of not less than 30 percent of the head-
quarters employees of the Administration as of the date of enactment of this
Act, to be at an office of the Administration at a location outside the Wash-
ington metropolitan area, which shall be at locations throughout the regions of
the Administration; and
(2) for each employee of the Administration whose permanent duty station is
changed under paragraph (1), ensure that—
(A) the rate of pay of the employee is calculated based on the pay locality
for the permanent duty station of the employee; and
(B) the employee is not authorized to telework on a full-time basis.
(b) DETERMINATION OF NEW DUTY STATIONS.—In determining the permanent duty
stations of headquarters employees of the Administration under subsection (a)(1),
the Administrator shall—
(1) promote geographic diversity, including consideration of rural markets;
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and
(2) ensure adequate staffing throughout the regions of the Administration, to
promote in-person customer service.
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(c) DETERMINATION OF EMPLOYEES ELIGIBLE FOR A CHANGE IN DUTY STATION.—
(1) IN GENERAL.—Except as provided in paragraph (2), the Administrator
shall include each headquarters employee of the Administration as eligible for
a change in permanent duty station under subsection (a).
(2) EXCEPTION.—A headquarters employee of the Administration who is a
qualified individual who receives an accommodation to telework on a full-time
basis as a reasonable accommodation under title I of the Americans with Dis-
abilities Act of 1990 (42 U.S.C. 12111 et seq.)—
(A) shall not be determined to be eligible for a change in permanent duty
station under subsection (a); and
(B) shall be counted as a headquarters employee of the Administration
for purposes of complying with subsection (a)(1).
(3) NOTICE OF DETERMINATION OF ELIGIBILITY.—Not later than the day before
the date on which the Administrator submits the report required under sub-
section (d), the Administrator shall notify each headquarters employee of the
Administration who the Administrator determines is eligible for a change in
permanent duty station under subsection (a) of that determination.
(d) REPORT.—Not later than 180 days after the date of enactment of this Act, the
Administrator shall submit to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business of the House of Represent-
atives a report that provides—
(1) the number of headquarters employees of the Administration, as of the
date of enactment of this Act;
(2) the number of headquarters employees of the Administration identified as
eligible for a change in permanent duty station, in accordance with subsection
(c);
(3) the number of headquarters employees of the Administration whose per-
manent duty station will be changed to be at an office of the Administration
at a location outside the Washington metropolitan area under subsection (a);
(4) the number of headquarters employees of the Administration subject to an
exception under subsection (c)(2); and
(5) the plan of the Administrator to implement subsection (a).
(e) IMPLEMENTATION.—
(1) IN GENERAL.—Not earlier than 60 days and not later than 90 days after
the date on which the Administrator submits the report required under sub-
section (d), the Administrator shall notify each headquarters employee of the
Administration whose permanent duty station will be changed to be at an office
of the Administration located outside the Washington metropolitan area under
subsection (a)—
(A) that, effective 90 days after the date of the notification—
(i) the permanent duty station of the employee shall be changed;
(ii) the rate of pay of the employee shall be calculated based on the
pay locality for such permanent duty station; and
(iii) the employee shall not be authorized to telework on a full-time
basis; and
(B) of the location of such permanent duty station.
(2) FULL-TIME TELEWORKERS REMAINING IN THE WASHINGTON METROPOLITAN
AREA.—
(A) IN GENERAL.—For any employee described in subparagraph (B), effec-
tive on the date that is 180 days after the date on which the Administrator
submits the report required under subsection (d), the employee shall not be
authorized to telework on a full-time basis.
(B) EMPLOYEES COVERED.—An employee described in this subparagraph
is a headquarters employee of the Administration—
(i) who teleworks on a full-time basis, as of the date of enactment of
this Act;
(ii) who is not subject to an exception under subsection (c)(2); and
(iii) whose permanent duty station is not changed to be an office of
the Administration at a location outside the Washington metropolitan
area under subsection (a).
(3) NO RELOCATION INCENTIVES.—If, pursuant to this Act, the official worksite
(as defined in section 531.602 of title 5, Code of Federal Regulations, or any suc-
cessor regulation) of an employee changes from the residence of the employee
to the headquarters of the Administration, notwithstanding any other provision
of law, the employee shall not be paid any relocation incentive.
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SEC. 4. REDUCTION IN HEADQUARTERS OFFICE SPACE.
(a) IN GENERAL.—The Administrator shall reduce the amount of office space for
the headquarters of the Administration by not less than 30 percent.
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(b) IMPLEMENTATION.—The Administrator shall—
(1) begin reducing office space under subsection (a) not later than 180 days
after the date of enactment of this Act; and
(2) complete the reduction of office space required under subsection (a) not
later than 2 years after the date of enactment of this Act.
SEC. 5. INFORMATION INCLUDED IN BUDGET JUSTIFICATION MATERIALS PROVIDED TO CON-
GRESS.
The Administrator shall include in the first budget justification materials of the
Administration submitted after the date of enactment of this Act, and the budget
justification materials of the Administration for each fiscal year thereafter—
(1) the number of headquarters employees of the Administration;
(2) the number of employees of the Administration assigned to a permanent
duty station in—
(A) a field office of the Administration;
(B) a district office of the Administration; or
(C) a regional office of the Administration;
(3) the number of employees of the Administration who telework on a full-
time basis; and
(4) the number of employees of the Administration who are a qualified indi-
vidual who receives an accommodation to telework on a full-time basis as a rea-
sonable accommodation under title I of the Americans with Disabilities Act of
1990 (42 U.S.C. 12111 et seq.).
SEC. 6. SEVERABILITY.
If any provision of this Act or the application of such provision to any person or
circumstance is held to be unconstitutional, the remainder of this Act and the appli-
cation of the provision to any other person or circumstance shall not be affected
thereby.
SEC. 7. SUPERSESSION.
This Act shall supersede any other provision of law and any provision of a collec-
tive bargaining agreement or master labor agreement.
SEC. 8. NO PRIVATE CAUSE OF ACTION.
Nothing in this Act shall be construed to establish a private cause of action, equi-
table or otherwise, to challenge any selection, change, or decision made, or action
taken, under this Act.
I. PURPOSE AND BILL SUMMARY
On March 11, 2025, Rep. Alford, introduced H.R. 2027, the Re-
turning SBA to Main Street Act. H.R. 2027 decentralizes the Small
Business Administration (SBA) by relocating 30 percent of the
SBA’s workforce in the Washington, D.C. headquarters to areas
outside of the Washington metropolitan area and eliminates certain
telework policies.
II. NEED FOR LEGISLATION
A 2023 Government Accountability Office (GAO) report found
that the SBA headquarters operated at just 10 percent capacity
under the Biden-Harris Administration. This is not only a wasteful
use of government spending but reflects poor stewardship of tax-
payer dollars, leaving small businesses with a lack of trust in the
SBA.
H.R. 2027 codifies implementation of President Trump’s Execu-
tive Order 14210 ‘‘Department of Government Efficiency Workforce
Optimization Initiative’’ by the SBA.1 On March 21, 2025, the SBA
announced an agency reorganization to ensure that 30 percent of
SBA personnel would be located in field offices, among other out-
comes.2 Bringing government employees back to the small busi-
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1 Exec. Order No. 14,210, 90 Fed. Reg. 9669 (2025).
2 News Release, U.S. Small Bus. Admin., Small Business Administration Announces Agency-
Wide Reorganization (Mar. 21, 2025), https://www.sba.gov/article/2025/03/21/small-business-
administration-announces-agency-wide-reorganization.
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5
nesses the agency serves would prioritize geographic dispersion and
small businesses in rural areas.
The Returning SBA to Main Street Act is essential to establish
guidelines that complement Administrator Loeffler’s priorities. This
bill is necessary to restore accountability, improve agency effi-
ciency, and ensure the SBA is present and responsive to the needs
of Main Street America across the country.
III. HEARINGS
On March 11, 2025, the Subcommittee on Oversight, Investiga-
tions, and Regulations of the Committee on Small Business held a
hearing examining matters related to H.R. 2027 titled ‘‘Restoring
the SBA: Putting Main Street America First.’’
IV. COMMITTEE CONSIDERATION
The Committee on Small Business met in open session, with a
quorum being present, on April 30, 2025, and ordered H.R. 2027,
as amended, to be reported favorably to the House of Representa-
tives by a roll call vote of 15 ayes to 11 nos. During the markup,
five amendments were offered.
V. COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of Representa-
tives requires the Committee to list the recorded votes on the mo-
tion to report legislation and amendments thereto. The Committee
voted to favorably report H.R. 2027, as amended, to the House of
Representatives at 6:13 PM.
The Committee considered the following amendments to H.R.
2027:
• Representative Alford offered an amendment in the nature
of a substitute. This amendment was adopted by voice vote.
• Representative Conaway offered an amendment to the
amendment in the nature of a substitute. The vote on the
amendment failed 11 ayes to 15 nos.
• Representative McIver offered amendment #1 to the
amendment in the nature of a substitute. The vote on the
amendment failed 11 ayes to 15 nos.
• Representative Morrison offered an amendment to the
amendment in the nature of a substitute. The vote on the
amendment failed 11 ayes to 15 nos.
• Representative McIver offered amendment #2 to the
amendment in the nature of a substitute. The vote on the
amendment failed 11 ayes to 15 nos.
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VI. SECTION-BY-SECTION OF H.R. 2027
Section 1—Short title
This act may be cited as the ‘‘Returning SBA to Main Street
Act.’’
Section 2—Definitions
‘‘Headquarters employee of the Administration’’ is defined as an
employee whose permanent duty station is at the headquarters of
the Administration, teleworks full-time, or whose pay rate is cal-
culated based on the Washington, D.C. rate of pay.
The terms ‘‘employee,’’ ‘‘telework,’’ and ‘‘pay locality’’ are defined
as they are defined elsewhere in statute.
Section 3—Relocation of employee
If cost savings can be made within one year, the Administrator
must reassign 30 percent of SBA headquarters employees to re-
gional offices outside of Washington, D.C. and ensure that the reas-
signed employees are paid based on their new locality and are not
allowed to telework full-time.
When selecting duty stations, the Administrator must ensure fair
geographical dispersion, including in rural markets, and adequate
regional staffing to support in-person services. All headquarter em-
ployees are eligible unless they have a disability-related telework
accommodation. These exempt employees still count toward the 30
percent total requirement.
Within 180 days, the Administrator must submit a report to Con-
gress on: (1) the number of employees at the Administration, (2)
the number of headquarter employees of the Administration that
are eligible for a change in duty station, (3) the number of head-
quarter employees that will be reassigned, (4) the number of head-
quarter employees that have a disability exemption, and (5) the im-
plementation plan of those being relocated.
Within 60 to 90 days of the report, employees selected for reas-
signment will be notified, and after 90 days of the notification,
these employees will be reassigned.
Any remaining full-time teleworkers in the D.C. area who are not
reassigned and are not exempt must stop full-time telework within
180 days after the date on which the Administrator releases the re-
port. No relocation bonuses will be provided for employees required
to report to a new duty station.
Section 4—Reduction in Headquarters office space
The Administrator must reduce SBA Headquarters’ office space
by at least 30 percent, which will begin within 180 days of enact-
ment and be completed within two years of enactment.
Section 5—Information included in budget justification materials
provided to Congress
The Administrator’s budget justifications to Congress must in-
clude the total number of headquarter employees, headquarter em-
ployees assigned to field offices, district offices, and regional offices.
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The submission will also include the number of employees who
telework full-time and those who telework under a disability ac-
commodation.
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Section 6—Severability
If any part of this Act is unconstitutional, the rest of the Act re-
mains valid and enforceable.
Section 7—Supersession
The Act overrides any conflicting laws or provisions in collective
bargaining or master labor agreements.
Section 8—No private cause of action
The Act does not create a private legal right to challenge any de-
cision or action taken under its authority.
VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
Pursuant to 3(c)(3) of rule XIII of the Rules of the House of Rep-
resentatives, the Committee adopts as its own the cost estimate
prepared by the Director of the Congressional Budget Office pursu-
ant to section 402 of the Congressional Budget Act of 1974. The
Committee has requested but not received from the Director of the
Congressional Budget Office a cost estimate for the Committee’s
provisions.
VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY,
AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
of Representatives and section 308(a)(I) of the Congressional Budg-
et Act of 1974, the Committee provides the following opinion and
estimate with respect to new budget authority, entitlement author-
ity, and tax expenditures. While the Committee has not received an
estimate of new budget authority contained in the cost estimate
prepared by the Director of the Congressional Budget Office pursu-
ant to Sec. 402 of the Congressional Budget Act of 1974, the Com-
mittee does not believe that there will be any additional costs at-
tributable to this legislation. H.R. 2027 does not direct new spend-
ing, but instead reallocates funding independently authorized and
appropriated.
IX. OVERSIGHT FINDINGS & RECOMMENDATIONS
In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the over-
sight findings and recommendations of the Committee on Small
Business with respect to the subject matter contained in the H.R.
2027 are incorporated into the descriptive portions of this report.
X. PERFORMANCE GOALS AND OBJECTIVES
With respect to the requirements of clause 3(c)(4) of rule XIII of
the Rules of the House of Representatives, the performance goals
and objectives of H.R. 2027 are to require the SBA to provide infor-
mation on employees in headquarters, district, field, and regional
offices, and the number of employees who receive a telework accom-
modation in its annual budget justification to Congress.
XI. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS
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Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
of Representatives, no provision of H.R. 2027 is known to be dupli-
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13
cative of another Federal program, including any program that was
included in a report to Congress pursuant to section 21 of Public
Law 111–139 or the most recent Catalog of Federal Domestic As-
sistance.
XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS,
AND LIMITED TARIFF BENEFITS
With respect to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee finds that the bill does not con-
tain any congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI of
the Rules of the House of Representatives.
XIII. FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal man-
dates prepared by the Director of the Congressional Budget Office
pursuant to section 423 of the Unfunded Mandates Reform Act.
XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b) of the
Federal Advisory Committee Act were created by this legislation.
XV. APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to the
terms and conditions of employment or access to public services or
accommodations within the meaning of section 102(b)(3) of the Con-
gressional Accountability Act.
XVI. STATEMENT OF CONSTITUTIONAL AUTHORITY
Pursuant to clause 7 of rule XII of the Rules of the House, the
Committee finds that the authority for this legislation in Art. I, § 8,
cl.1 of the Constitution of the United States.
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XVII. MINORITY VIEWS
On March 21, 2025, Small Business Administration (SBA) Ad-
ministrator Kelly Loeffler announced an agency wide reorganiza-
tion, which among other things, includes a 43% workforce reduc-
tion.1 This announcement came on the heels of the February 12
firings of thousands of probationary employees throughout the gov-
ernment, including SBA.2 James Bredar, a federal district court
judge, in Maryland ordered the Trump administration to rehire the
previously terminated employees at 18 federal agencies in 19
states,3 with some being placed on administrative leave. On April
9, an appeals court overruled Judge Breder’s decision and cleared
the way for the firings.4 Employees at the COVID–19 Economic In-
jury Disaster Loan Servicing Center, which is comprised of 1,200
individuals, received an email on April 18 that they would be laid
off effective May 16 or May 2.5
H.R. 2027, the Returning SBA to Main Street Act, which would
relocate 30 percent of SBA employees from headquarters to other
parts of the country, is a Republican messaging bill that is just an-
other assault on federal employees and harms our nation’s 34 mil-
lion small businesses.
The bill isn’t necessary because the majority of the workforce is
currently in the field. SBA has more than 800 employees in the
headquarters in Washington, D.C. and approximately 8,500 em-
ployees, in total, including in the 68 district offices across the coun-
try.6 SBA employees are distributed throughout the country with
large staffing presences at SBA loan and processing centers in
Herndon, Virginia; Sacramento, California; Birmingham, Alabama;
and Fort Worth, Texas. SBA also operates 68 district offices and 10
regional offices serving all 50 states and territories.
A major restructuring is already underway within the adminis-
tration, and a 30 percent relocation on top of the terminations will
result in a more sizable reduction. According to the March 21, 2025
press release, the agency plans to reduce its workforce to pre-pan-
demic levels by eliminating about 2,700 active positions out of a
total active workforce of 6,500 (for a reduction of 43%). According
to the agency, the reductions include voluntary resignations, the
1 U.S. SMALL BUS. ADMIN., Small Business Administration Announces Agency-Wide Reorga-
nization (Mar. 21, 2025), https://www.sba.gov/article/2025/03/21/small-business-administration-
announces-agency-wide-reorganization.
2 Chaos and Corruption Weekly Digest: Week 4, AFGE (Oct. 26, 2018), https://www.afge.org/
article/chaos-and-corruption-weekly-digest-week-4/.
3 Madison Alder, Appeals Court Halts Remaining District Order That Reinstated Fired Proba-
tionary Workers, FEDSCOOP (Apr. 9, 2025), https://fedscoop.com/appeals-court-halts-remaining-
district-order-that-reinstated-fired-probationary-workers.
4 Id.
5 Frank Konkel, SBA Hit with More Layoffs, GOVEXEC (Apr. 18, 2025), https://
www.govexec.com/workforce/2025/04/sba-hit-more-layoffs/404682.
6 Letter from Daniel Horowitz, Acting Legislative Dir., Am. Fed’n of Gov’t Emps. to Members
of Congress (Apr. 30, 2025) (on file with H. COMM. ON SMALL BUS.). WHITE HOUSE OFF. OF
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PERS. MGMT., FedScope, https://www.fedscope.opm.gov (last visited Apr. 16, 2025).
(14)
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expiration of pandemic-era term appointments, and reductions in
force.7
The Committee should be inviting the Administrator to testify be-
fore our committee, instead of holding a partisan mark-up on a
messaging bill. Committee Democrats sent five letters to SBA
about the reorganization, staff terminations, Department of Gov-
ernment Efficiency (DOGE) access, and the federal funding freeze.
SBA has not responded, and an SBA briefing was abruptly can-
celed and never rescheduled.
If Republicans want more employees in the field, they should in-
crease resources for its district offices to conduct outreach, engage-
ment, and customer service and as well as conduct oversight of the
administration. SBA already has an Office of Field Operations, and
those employees are trained to work with the public, and to go out
into the field. Employees at SBA headquarters work at the pro-
grammatic level, which includes administering grants, providing
reimbursements, and management of enterprise-wide information
technology systems. It is unclear how the roles and duties would
be modified to ‘‘promote in-person customer service,’’ as required
under the legislation. Moreover, a significant portion of the field
operations staff have either been terminated or resigned, according
to reports. If Republicans want more people in the field, they
should increase resources for the field, and conduct oversight of the
administration to ensure that the Administrator retains the em-
ployees in the field, who are specifically trained in customer service
and engagement, rather than holding a partisan mark-up to relo-
cate employees without any data.
The terminations and resignations are happening haphazardly.
SBA offered a Deferred Resignation Program (DRP) to employees
who are eligible for a deferred annuity under the Federal Employ-
ees Retirement System, and approximately 1,500 employees have
accepted. SBA originally told employees they could leave April 19,
2025, but reportedly delayed the date to May.8 SBA has not in-
formed Committee Democrats as to the number of employees who
have accepted the deferred resignations or the offices in which they
work. Reports have surfaced that entire offices have been hallowed
out, raising concerns that SBA may no longer have the capacity to
carry out its services.
The bill is costly and would do nothing to control government
spending. SBA signed a 20-year lease beginning on November 24,
2022, and the cost of breaking the lease and repaying the tenant
improvements would run into the millions. The bill’s proponents
significantly overestimate the costs of keeping the agencies in the
D.C. area. ‘‘In addition to the direct cost of relocation, the resulting
brain drain from this massive loss of talent will severely damage
SBA, and it will take years to rebuild the highly specialized work-
force. SBA could be forced to outsource work to entities outside the
7 U.S. SMALL BUS. ADMIN., Small Business Administration Announces Agency-Wide Reorga-
nization (Mar. 21, 2025), https://www.sba.gov/article/2025/03/21/small-business-administration-
announces-agency-wide-reorganization.
8 Eric Katz, Employees Swarm to Second ‘Deferred Resignation’ Offer, Though Some Are Re-
ceiving Unexpected Responses, GOVEXEC (Apr. 11, 2025), https://www.govexec.com/workforce/
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federal government and acquire additional space placing significant
financial strain to the Agency and American public.9
SBA could lose years of expertise, as well as the ability to recruit
younger talent. SBA employees, located in headquarters, and may
not be inclined to uproot families to relocate to other parts of the
country. As employees retire either willingly or through force, the
agency will lose years of experience and institutional knowledge.
Moreover, the mass firings of probationary workers, who are typi-
cally younger, hinder the ability of the agency to recruit younger
talent.
Sections 7 and 8 seek to limit an employee’s ability to participate
in union activities, including limiting protections under a collective
bargaining agreement or other master labor agreement and banning
a private right of action for wrongful termination. The AFGE is
leading the fight in the courts to defeat President Trump’s assault
on federal collective bargaining, but it will be weeks if not months
before the final outcome is known. According to the AFGE, for al-
most 150 years, under both Democratic and Republican administra-
tions, Title 5 of the U.S. Code has mandated that federal worker—
including those represented by unions like AFGE—faithfully carry
out the laws of Congress and serve all Americans. President’s
Trump’s Executive Order and this legislation open the door to
abuse and retaliation. If left unchallenged, it will be American tax-
payers who suffer the most when the services they depend on dete-
riorate.10
Committee Democrats offered four amendments during the
mark-up. Rep. Herbert C. Conaway, Jr. (D–NJ) offered a strike and
replace amendment, requiring GAO to conduct an analysis of the
Administrator’s reorganization plan. Only 12 percent of the work-
force is located at headquarters and arbitrarily moving employees
with no coordination or plan doesn’t make sense. This amendment
would require a much-needed analysis of the impact the ill-con-
ceived plan would have on the lending, disaster, contracting, and
entrepreneurial development programs millions of small businesses
rely on. Republicans defeated the amendment calling for an anal-
ysis on the grounds that it would slow the process down.
Rep. LaMonica McIver (D–NJ) offered an amendment requiring
the Administrator to testify before the House Small Business Com-
mittee before the bill could go into effect. Rep. McIver called atten-
tion to the spree of firings, relocations of SBA offices, and handling
of the SBA portfolio. Given the disruptive changes to the SBA, and
the lack of information from the Administrator, Rep. McIver offered
an amendment to require the Administrator to testify before this
Committee before any provision of the bill is implemented. Com-
mittee Democrats pointed out that five letters to the Administrator
have gone unanswered by the current Administrator. Disputing Re-
publicans claims. Committee Democrats pointed out that Adminis-
trator Guzman not only testified before the Small Business Com-
mittee twice a year but also visited the districts of our colleagues—
both Republican and Democrat. Republicans defeated the measure
on the grounds that the amendment would delay the process.
9 Supra note 6.
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COMM. ON SMALL BUS.).
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Rep. Kelly Morrison (D–MN) offered an amendment to exempt
SBA employees who are veterans from being relocated. Forcing
SBA employees who are veterans to abruptly relocate would be an-
other cruel decision that breaks our pledge to take care of those
who served. Committee Republicans defeated the amendment.
Rep. McIver offered a second amendment that would prohibit the
bill from taking effect until the Administrator publishes a deter-
mination that the cost of carrying out the bill is not more than
zero. Ms. McIver reiterated that the administration was actively
cutting nearly half of its workforce and engaging in other struc-
tural changes, without a clear strategy or communicating the
changes to Committee members. Prohibiting the implementation of
the bill until the Administrator determines that it would not in-
crease costs to the American taxpayer is not unreasonable. In fact,
it is a prudent policy. Republicans rejected this commonsense
amendment on the grounds that it would impose a ‘‘roadblock.’’
Committee Democrats opposed the legislation because it is a
messaging bill that is just another assault on federal employees
and harms our nation’s 34 million small businesses.
NYDIA M. VELÁZQUEZ,
Ranking Member.
Æ
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