II Calendar No. 21 119th CONGRESS 1st Session S. 298 IN THE SENATE OF THE UNITED STATES January 29, 2025 Ms. Ernst (for herself, Mrs. Blackburn , and Mr. Scott of South Carolina ) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship March 4, 2025 Reported by Ms. Ernst , with an amendment Strike out all after the enacting clause and insert the part printed in italic A BILL To require the Administrator of the Small Business Administration to relocate 30 percent of the employees assigned to headquarters to duty stations outside the Washington metropolitan area, and for other purposes.

1. Short title This Act may be cited as the Returning SBA to Main Street Act . 2. Definitions In this Act: (1) Administration; Administrator The terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively. (2) Budget justification materials The term budget justification materials 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 section 2105 of title 5, United States Code. (4) Headquarters employee of the Administration The term headquarters 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 metropolitan area rate of pay. (5) Headquarters of the Administration The term headquarters of the Administration means the building serving as the principal managerial and administrative 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 section 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 locality designated as Washington-Baltimore-Arlington, DC-MD-VA-WV-PA . 3. Relocation of employees (a) In general Notwithstanding any other provisions of law, and not later than 1 year after the date of enactment of this Act, the Administrator shall— (1) change the permanent duty station of not less than 30 percent of the headquarters 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 Washington 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), the Administrator shall— (1) promote geographic diversity, including consideration of rural markets; and (2) ensure adequate staffing throughout the regions of the Administration, to promote in-person customer service. (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 Disabilities 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 subsection (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 Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives 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 permanent 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 subsection (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), effective 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 531.605 of title 5, Code of Federal Regulations, or any successor 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. 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. (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. 5. Information included in budget justification materials provided to Congress 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 individual who receives an accommodation to telework on a full-time basis as a reasonable accommodation under title I of the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12111 et seq. ). 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 application of the provision to any other person or circumstance shall not be affected thereby. 7. Supersession This Act shall supersede any other provision of law and any provision of a collective bargaining agreement or master labor agreement. 8. No private cause of action Nothing in this Act shall be construed to establish a private cause of action, equitable or otherwise, to challenge any selection, change, or decision made, or action taken, under this Act.

1. Short title This Act may be cited as the Returning SBA to Main Street Act . 2. Definitions In this Act: (1) Administration; Administrator The terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively. (2) Budget justification materials The term budget justification materials 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 section 2105 of title 5, United States Code. (4) Headquarters employee of the Administration The term headquarters 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 metropolitan area rate of pay. (5) Headquarters of the Administration The term headquarters of the Administration means the building serving as the principal managerial and administrative 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 section 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 locality designated as Washington-Baltimore-Arlington, DC-MD-VA-WV-PA . 3. Relocation of employees (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 headquarters 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 Washington 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; and (2) ensure adequate staffing throughout the regions of the Administration, to promote in-person customer service. (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 Disabilities 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 subsection (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 Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives 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 permanent 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 subsection (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), effective 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 successor 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. 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. (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. 5. Information included in budget justification materials provided to Congress 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 individual who receives an accommodation to telework on a full-time basis as a reasonable accommodation under title I of the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12111 et seq. ). 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 application of the provision to any other person or circumstance shall not be affected thereby. 7. Supersession This Act shall supersede any other provision of law and any provision of a collective bargaining agreement or master labor agreement. 8. No private cause of action Nothing in this Act shall be construed to establish a private cause of action, equitable or otherwise, to challenge any selection, change, or decision made, or action taken, under this Act.

March 4, 2025 Reported with an amendment