This bill mandates that federal agencies conduct detailed benefit-cost analyses and submit them to their Inspectors General for review before undertaking significant job or function relocations.
Chris Van Hollen
Senator
MD
The COST of Relocations Act establishes strict new requirements for federal agencies planning significant job or function relocations. Before proceeding, agencies must conduct a detailed, publicly available benefit-cost analysis reviewed by their Inspector General. This process ensures Congress receives an independent assessment of the move's justification, adherence to economic guidelines, and potential mission impacts.
If you’ve ever worked for a big company that decides to move offices, you know the drill: rumors fly, morale drops, and often, the move seems driven by a spreadsheet that doesn't account for the human cost. The Congressional Oversight to Secure Transparency of Relocations Act, or the COST of Relocations Act, aims to stop that kind of seat-of-the-pants decision-making when it comes to federal agencies.
This bill introduces a mandatory, upfront cost-benefit analysis (CBA) for any significant federal job relocation. Before an agency can even pitch a move to the Office of Management and Budget (OMB), they have to prove the move is actually worth the hassle and the taxpayer money. This process kicks in for any "covered relocation," which is defined as moving or replacing 100 employees, or 5% of the agency’s staff, whichever number is smaller, outside of their current commuting area. Essentially, it covers almost any large-scale move.
Under this Act, an agency can’t just say, “We think moving to City X will save us money.” They have to produce a detailed CBA following strict OMB guidelines (specifically, Circular A-4). This isn't just about dollars and cents; the analysis must include a detailed plan for engaging employees, a risk assessment, and a deep dive into how the move will affect the agency’s ability to execute its core mission both in the short term and years down the line. For the average person, this means that if your local federal office is moving, the agency must now publicly document why that move won't disrupt the services you rely on.
This is where the oversight gets serious. Once the agency finishes its CBA, it has to hand over an unredacted copy—meaning they can't hide anything—to their own Office of Inspector General (OIG). The OIG then gets 90 days to act as the independent auditor. Their job is to review the agency’s work, check if they followed the economic rules correctly, and determine if the move is fiscally justified. If the move involves shifting jobs out of Washington D.C., the OIG must also verify that the agency properly compared real estate costs inside the capital region against the new location.
For the public, the biggest win here is transparency. The agency is required to make the final CBA report public. This means citizens and congressional watchdogs can actually see the data and reasoning behind a major federal decision—a huge step up from moves that might currently be justified with vague promises. However, the bill does allow the agency to remove “trade secrets or genuinely confidential information” before public release. This is a potential gray area where agencies could, if they chose to, redact unfavorable findings under the guise of confidentiality.
For federal agencies, this is a heavy lift. It means relocation planning will take longer, require more detailed documentation, and be subject to intense scrutiny from both the OIG and Congress. While that administrative burden is real, the trade-off is a much more accountable and justified process for spending taxpayer money on operational changes. Ultimately, the COST of Relocations Act ensures that when the government decides to pack its bags, it has to show its work, justify the expense, and plan for the human impact before the moving trucks even start their engines.