To: Members of the House Committee on Oversight and Government Reform
From: National Taxpayers Union
Date: February 3, 2026
Subject: NTU’s Views on February 4 Committee Markup
I. Introduction and Key Taxpayer Considerations
On behalf of National Taxpayers Union (NTU), the nation’s oldest taxpayer advocacy organization, we write to express our views on several measures slated for consideration before the House Committee on Oversight and Government Reform on February 4, 2026. NTU applauds the Committee for its continued efforts to advance legislation that improves government efficiency, enhances transparency, and protects taxpayers from wasteful spending. As such, NTU strongly urges Committee members to support H.R. 5438, H.R. 4123, H.R. 7256, and H.R. 1118.
II. Legislation NTU Supports at February 4 Markup
H.R. 5438, Incentivize Savings Act – Support. This bipartisan legislation, authored by Rep. Rich McCormick (R-GA), is a constructive approach to improving federal budget discipline by addressing the incentives that drive wasteful year-end spending. For example, past reviews have documented year-end spending on items such as last-minute equipment upgrades, unnecessary training contracts, and nonessential office purchases that appear driven more by expiring budget authority than operational need. These questionable purchases happen because of fear that, if members of Congress see that an agency doesn’t use up its entire budget allotment, then future budget requests may face reductions.
Thankfully, this legislation breaks that cycle by encouraging actual savings at year’s end by allowing 49% of remaining funds to be retained by agencies for future use, with the remaining amounts used for deficit reduction (49%) and performance bonuses (2%). As explained by our sister organization, National Taxpayers Union Foundation, “The bill is best understood as targeting unobligated balances, not funds that have already been legally committed through contracts or grants. Ensuring this distinction is clear would strengthen the legislation without undermining its core objective of discouraging wasteful end-of-year spending.”
H.R. 4123, Federal Improvement in Technology Procurement Act – Support. This bipartisan legislation, authored by Reps. Burlison (R-MO), Subramanyam (D-VA), Luna (R-FL), and Lynch (D-MA), is a common sense update to how the federal government purchases technology. Outdated procurement rules slow innovation, lock agencies into failing legacy systems, and ultimately waste taxpayer dollars. Thankfully, the FIT Procurement Act streamlines some of these practices and gives agencies the flexibility they need to keep pace with modern technology. By reducing red tape and increasing competition, this legislation will ensure smarter use of taxpayer funds. In an era of tight budgets and rising expectations, modernizing federal IT procurement is essential.
H.R. 7256, Federal Workforce Early Separation Incentives Act – Support. This legislation, introduced by Rep. Langworthy (R-NY), represents a balanced approach toward reducing the federal workforce and increasing government efficiency. By raising the cap on voluntary separation incentive payments, this bill empowers agencies to manage staffing changes in ways that are strategic, voluntary, and less disruptive for employees and taxpayers alike. Federal agencies face mounting fiscal pressure, and personnel costs represent one of the largest and fastest-growing components of the federal budget. Allowing agencies to offer enhanced voluntary separation incentives provides a smarter alternative to across-the-board cuts or permanent workforce expansion. By encouraging voluntary departures, agencies can reduce payroll costs, avoid lengthy legal disputes, and limit disruption to operations.
Thanks in part to voluntary buyouts in 2025, the federal workforce has declined almost 10% over the past year. This equates to billions of taxpayer dollars saved on health care costs, salaries, and other benefits. Today, the federal workforce is at the lowest point in 22 years, which is progress both worth celebrating and accelerating. The Federal Workforce Early Separation Incentives Act will ensure a march toward a more efficient federal government continues.
H.R. 1118, Value Over Cost Act – Support. This bipartisan legislation, authored by Reps. Donalds (R-FL) and Moskowitz (D-FL), would allow the General Services Administration, through its Multiple Award Schedule program, to award contracts that obtain the best value for the government rather than only the lowest overall cost. Under current rules, the emphasis on the lowest overall cost too often leads to short-sighted purchasing decisions that sacrifice quality, performance, and long-term savings to taxpayers. This bill corrects that by allowing the GSA Administrator to consider a broader set of factors when it is in the federal government’s best interest to do so.
III. Contact Information
Should you have any questions about the recommendations in this memo, please do not hesitate to reach out to Thomas Aiello at taiello@ntu.org.