Largely ignored in the debate over these policies is a key point: Government agencies and the nonprofits that must implement these requirements will face a real stress test. And many of them aren’t ready.
We’ve seen what happens when bureaucracy collides with new mandates. In 2018, Arkansas introduced work requirements for Medicaid. Eighteen thousand people lost coverage — not because they refused to work, but because the reporting system was confusing and burdensome. Georgia’s program has enrolled only a fraction of eligible adults, while piling on administrative costs.
These failures weren’t about intent. They were about design. Leaders tried to manage new rules by adding more forms, more staff, more oversight. The result was more friction, not more resilience.
I’ve seen the same dynamic firsthand. As a consultant and career counselor for a nonprofit, I’ve watched colleagues spend hours manually retyping client names across multiple spreadsheets, counting totals with their fingers and then re-entering them into reports. When I suggested exporting data directly from our software — a fix that would save close to eight hours a week and reduce errors — I was told, “We’ve done it this way for 28 years.” Worse, when I brought up the impending work requirements challenge, one executive director told me, “We’ll just hire more staff.”
That mindset — rewarding routine over improvement — was already costly. With new reporting requirements looming, it’s dangerous. Outdated systems will slow services, increase errors and make it harder for clients to document their compliance with the new work mandates.
The irony is that many employees could deliver far more value if freed from bureaucratic drag. Automating routine tasks would open up hours to build partnerships, pilot research and improve outcomes. Multiply that across the sector, and you see not only the opportunity but the risk of inaction: Bureaucracy doesn’t just waste time. It suppresses ingenuity.
The administrative challenges presented by the One Big Beautiful Bill Act are an opportunity, if leaders take it. They can either double down on existing bureaucracy and repeat Arkansas and Georgia’s mistakes, or they can redesign how work gets done. Based on my experience, a few steps stand out:
• Audit bureaucracy. Map your processes. Which steps add value for clients and which exist only because “we’ve always done it this way”? Frontline staff know where inefficiencies live — invite their input.
• Automate the routine. Manual data entry and duplicative reporting are ripe for technology solutions. Used wisely, automation eliminates busywork and reduces errors.
• Push authority to the edge. Staff closest to clients often know what works best. Set clear vision, then empower professionals to create and test solutions. Engaged employees shape better outcomes.
• Measure outcomes, not activity. Don’t reward busyness. Track whether clients are getting and keeping jobs, whether services are delivered faster, whether reporting accuracy improves.
The provisions of the One Big Beautiful Bill Act won’t just test beneficiaries; they will test leaders. Do they cling to outdated systems and treat existing bureaucracy as inevitable? Or do they seize this moment to unleash the creativity already inside their organizations?
As Gary Hamel and Michele Zanini write in their book Humanocracy, “Organizations are often less resilient, creative, and energetic than the people inside them.” That’s the real opportunity here. If leaders empower staff and streamline systems, they can turn a daunting mandate into a breakthrough.
James Lopata is a leadership and career coach and consultant. He advises senior leaders in private and public organizations, including the New York State Attorney General’s Office. The views expressed are his own.
Governing’s opinion columns reflect the views of their authors and not necessarily those of Governing’s editors or management.
Related Articles
