FALCON Act Imposes 60-Day Deadline on Federal Agencies to Answer Oversight Demands, Backed by Discipline.

The new Fast Action for Lawful Compliance with Oversight Needs Act of 2025—or the FALCON Act—is all about putting a hard deadline on government accountability. Essentially, this bill forces federal agencies and everyone working for them to stop dragging their feet when the Inspector General (IG) comes knocking.

The 60-Day Clock: No More Ghosting the IG

The core of the FALCON Act is simple: If the IG of a federal agency sends a “covered request”—meaning they ask for documents, assistance, or an interview during an investigation—the recipient must comply within 60 days. This isn’t a suggestion; it’s a mandate that applies to every officer, employee, grant recipient, and contractor (SEC. 2).

Think of the IG as the internal auditor and watchdog for the agency, making sure taxpayer money isn't wasted and rules aren't broken. Currently, IGs often complain that agencies slow-walk requests, sometimes for years, effectively stalling investigations. This bill aims to fix that by giving the IG a big stick.

What Happens When the Deadline Passes?

This is where the rubber meets the road. If someone fails to comply within those 60 days, they face consequences. For federal employees, this could mean administrative discipline, including suspension without pay or even removal from their job. For contractors, the agency can take adverse contract actions, which could mean penalties or losing out on future government work (SEC. 2).

This is a huge deal for the thousands of contractors and federal employees whose livelihoods depend on clear rules. If you’re a project manager on a tight deadline, you now have a new, very serious priority when the IG calls. Non-compliance is no longer just a bureaucratic inconvenience; it’s a threat to your employment or your contract.

The Check-and-Balance Catch

While the IG is the one who determines that non-compliance has occurred, they don't have the final say on punishment. The ultimate decision on whether to discipline an employee or contractor rests solely with the head of the covered agency (SEC. 2). If the person being disciplined is the agency head, the President makes the final call.

This provides a necessary check, but it also creates a potential loophole. If an IG finds that a high-level official failed to cooperate, the official’s boss—the Agency Head—still gets to decide if they face real consequences. This is a point of concern for watchdogs: Will Agency Heads use this discretion to protect their inner circle, or will they enforce the new law rigorously?

Shining a Light on Non-Cooperation

To keep everyone honest, the bill mandates transparency. If the IG determines someone failed to comply, they must notify both the agency head and the appropriate Congressional committees within 30 days. This notification must include the job title, the organizational unit, the date of the original request, and a general description of what was asked for (SEC. 2).

This means Congress gets a clear, unclassified report card on who is obstructing oversight. While the IG can keep the sensitive investigative details classified, the public—via their representatives—will know exactly which parts of the government are failing to cooperate. This public reporting mechanism is designed to add political pressure to ensure the 60-day rule is actually followed, making it harder for agency leadership to sweep non-compliance under the rug.