Most employees work at the office during normal buisness hours, yet many of us do jobs that can be done at home as well, or more efficiently. Some employees at my office already go home to work on focused writing - they have fewer interuptions and find that they actually get MORE work done at home. Using the phone, instant messaging and our increasing web-based communication systems, it doesn't matter where our desk is in order to perform many of our desk jobs. Thus, encouraging agencies to use TeleWork whenever it is fits the job would save $$$, instead of only allowing people who can't work at the office to TeleWork.
TeleWork could have designated "office days" - scheduled days when employees need to be in the office to take care of meetings or face-to-face tasks.
Plus, we save $ by needing less office space (don't need as big of a desk space for just "office days"). Also, this flexibility would probably improve morale.