The "State-Level Departments of Government Efficiency Establishment Act" proposes to condition the disbursement of certain federal funds to states. Beginning in fiscal year 2026, states would not receive discretionary federal appropriations, excluding security-related funds, unless they establish a dedicated government efficiency entity. These state-level departments, agencies, or commissions would be tasked with reviewing the efficacy of the state's administration of federal funding and working to eliminate waste, fraud, and abuse of taxpayer funds. Each entity must consist of 10 to 20 members , ensuring equal representation from the majority and minority parties within the state's legislature. Furthermore, these entities would be required to publish an annual report on their public website and submit it to a federal Department of Government Efficiency, detailing their efforts and offering legislative and operational suggestions to enhance the efficiency of federal fund expenditures.