Close all non governmental functioned departments. Then shrink and move remaining departments from DC to other regions that meed financial help. Find the poorest communities in the nation and immediately help the local economy. Require them to hire local people. Have an employment preference scale, the longer you have lived in the community the more likely you are to be hired.
Move the newly reformed departments to the areas where they match their mission. The agriculture department should be in the smallest town in Kansas. The office of the head of the education department should be in the lowest performing school in the country, as in, down the hall from the janitor at that school.
Take the “money” out of government jobs, make them feel and know what their policies are doing by making them live in the world their policies affect.