An Act establishing the Office of Massachusetts Main Streets

194th Legislature (2025-2026) Introduced by Rodney Elliott and 1 co-sponsor

Requires federal agencies to submit zero-based budgets every six years, covering a five-year outlook, plus a 2% discretionary cut recommendation (DoD/NNSA exempt).

Bill reported favorably by committee and referred to the committee on Senate Ways and Means

Summary of S. 181 — Zero-Based Budget Act

Purpose and scope

S. 181 proposes a federal budget reform that would require federal agencies to conduct and submit zero-based budgets on a cyclical basis. The bill defines zero-based budgeting as a systematic budget analysis to support decision making, in which managers examine objectives, operations, and costs; consider alternative ways to carry out programs; and rank programs by importance to the agency. The overall goal is to strengthen program evaluation and inform congressional appropriations decisions.

Key provisions

Definitions (Section 1(a))

“Agency” follows the definition used in 5 U.S.C. 551.
“Zero-based budget” means a formal, objective-focused budgeting process: review of objectives, operations, and costs; exploration of alternative delivery methods; and ranking of programs by importance.

Submission requirement (Section 1(b))

Every sixth year, each agency must submit to the Director of the Office of Management and Budget (OMB) and to the Senate Committee on the Budget and the House Committee on the Budget a zero-based budget for:
the next fiscal year, and
each of the four ensuing fiscal years (a five-year horizon).

Additional recommendations (Section 1(c))

In addition to the zero-based budget, each agency—except the Department of Defense (DoD) and the National Nuclear Security Administration (NNSA)—must submit recommendations for programs the Congress should cut or reduce, amounting to at least a 2% reduction from the previous year’s discretionary spending.

Timeline and process

The bill creates a cyclical requirement: a zero-based budget submission every six years, covering five years of forward planning (the next fiscal year plus four additional years).

DoD and NNSA are exempt from the mandatory 2% discretionary reduction recommendation, but still subject to the zero-based budgeting requirement (as applicable).

Affected entities

Federal agencies (per 5 U.S.C. 551 definition)

Director of the Office of Management and Budget (OMB)

Senate and House Budget Committees

DoD and NNSA (exempt from the 2% reduction recommendation requirement)

Legislative status and sponsors

Introduced: January 22, 2025

Status: Read twice and referred to the Senate Committee on Homeland Security and Governmental Affairs

Primary sponsor: James E. Risch

Cosponsors: Rick Scott, Mike Crapo, Cynthia M. Lummis, Ted Cruz, Tim Sheehy, Pete Ricketts

Potential impact and considerations

Aims to strengthen program evaluation and accountability by forcing a formal, bottom-up budgeting approach on a recurring cycle.

Could increase planning and analytical workload for agencies and require enhanced coordination with OMB and congressional budget committees.

The 2% discretionary spending reduction recommendation creates a formal mechanism for identifying potential cuts, though DoD and NNSA are exempt from this particular requirement.

The bill does not specify enforcement mechanisms or penalties for non-compliance, nor does it detail implementation timelines beyond the six-year cadence.

This summary captures the bill’s core purpose, provisions, and potential effects to help readers understand its scope and implications.