Government already has some good telework initiatives in place, however, they are not equal across the board. In fact, there's even some shady reporting occurring from some Departments.
If an employee has no real reason to come into an office, other than to make sure that they're working, then they should be given an opportunity to telework full-time. Full-time telework would also mean that they could live apart from their local, so long as they could attend mandatory meetings (at their cost).
British Telecom did a case study in the 90's that computed each of their employees cost them $258 pounds per month in space, utilities, and equipment. They gave 10% of their workforce the chance to telework full-time, and saved over 100 million pounds per year from 6000 employees teleworking full-time.
There is no excuse in this digital age to have physical offices for 50% of government employees.