HR 201 · 119th CongressIn Committee

Federal Employee Performance and Accountability Act of 2025

Latest updateJan 3, 2025

Referred to the House Committee on Oversight and Government Reform.

Government Operations and Politics

Sponsor

Claudia Tenney

Introduced

January 3, 2025

Latest action

January 3, 2025

Legislative Progress

How far this bill has traveled through Congress

Introduced

Bill filed in chamber

Committee

Reviewed & reported

Passed Chamber

House or Senate vote

Passed Both

House & Senate agree

President

Sent to White House

Enacted

Signed into law

Introduced

Bill filed in chamber

Committee

Reviewed & reported

Passed Chamber

House or Senate vote

Passed Both

House & Senate agree

President

Sent to White House

Enacted

Signed into law

Latest Action

Referred to the House Committee on Oversight and Government Reform.

Plain-Language Summary

AI Generated

Federal employees currently receive pay adjustments through established Title 5 mechanisms, including annual cost-of-living adjustments, step increases within their grade, and performance bonuses administered under existing civil service rules. These adjustments are uniform across most employees at the same grade level and do not directly tie individual compensation to measurable performance outcomes. The current system emphasizes seniority and position classification rather than productivity metrics or accountability tied to specific job functions.

This bill directs the Office of Management and Budget to establish a 5-year pilot program that ties pay directly to individual performance for eligible federal employees at grades GS-11 through GS-15 and senior-level positions in roles with measurable outputs—such as project managers, policy analysts, IT specialists, and claims processors. Participating agencies must enroll between 1 and 10 percent of eligible employees. The Director of OMB shall establish standardized performance metrics focused on productivity, quality, and timeliness. Employees exceeding expectations receive salary increases up to 10 percent; those meeting expectations receive no adjustment; those falling short face a 10 percent pay reduction and mandatory training. Agencies may also award bonuses and non-monetary benefits like telework or flexible scheduling to top performers.

The pilot runs for five years beginning 180 days after enactment, with salary adjustments taking effect in year two. Participating employees become ineligible for standard Title 5 pay increases, step advances, and performance bonuses during their participation. Agencies must submit annual reports on productivity, cost savings, and employee satisfaction to OMB, which publishes findings to Congress. The program uses existing agency budgets with no new appropriations. Within one year of program termination, the Comptroller General and OMB must assess overall impact on productivity, budgets, and employee engagement and report to Congress.

Key Provisions

1Establishes a 5-year pilot program requiring the Office of Management and Budget to implement performance-based pay for federal employees at grades GS-11 through GS-15 and senior-level positions in measurable-output roles.
2Requires participating agencies to enroll between 1 and 10 percent of eligible employees and establish annual performance metrics tied to productivity, quality, and timeliness standards specific to each agency's functions.
3Implements a tiered pay structure under which employees exceeding expectations receive up to 10 percent salary increases, those meeting expectations receive no adjustment, and those below expectations face 10 percent pay reductions plus mandatory training.
4Prohibits participating employees from receiving standard Title 5 pay adjustments, step increases, bonuses, or performance awards during program participation, replacing those benefits with the pilot's performance-based structure.
5Directs the Office of Management and Budget to publish annual reports to Congress on program outcomes including productivity gains, budgetary impact, and employee satisfaction, with a final assessment by the Comptroller General within one year of program termination.

★ Why this matters

The pilot fundamentally changes how compensation works for participating federal employees by replacing seniority-based pay progression with performance-based adjustments. Employees could see salary increases up to 10 percent or reductions of 10 percent annually based on measurable outcomes rather than years of service. This creates direct financial incentives tied to productivity metrics and removes access to standard federal pay raises and step increases during participation, potentially increasing income volatility for some workers while rewarding others for measurable output.

● Who this affects

Federal employees at grades GS-11 through GS-15 and senior-level positions in project management, policy analysis, information technology, finance, procurement, customer service, and claims processing roles—approximately 1 to 10 percent of eligible staff at each participating agency. The Office of Management and Budget oversees program implementation and reporting. Congress receives annual assessments and a final impact report. Agencies participating in the pilot must establish new evaluation systems, provide training, and manage pay adjustments outside standard civil service procedures. The Comptroller General conducts the final program assessment.

Bill Text

View on Congress.gov

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<DOC>

119th CONGRESS
  1st Session
                                H. R. 201

 To implement a 5-year pilot program establishing a performance-based 
    pay structure for certain Federal employees in order to enhance 
   productivity, accountability, and employee satisfaction in public 
                                service.

                    IN THE HOUSE OF REPRESENTATIVES

                            January 3, 2025

  Ms. Tenney introduced the following bill; which was referred to the 
              Committee on Oversight and Government Reform

                                 A BILL

 
 To implement a 5-year pilot program establishing a performance-based 
    pay structure for certain Federal employees in order to enhance 
   productivity, accountability, and employee satisfaction in public 
                                service.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Employee Performance and 
Accountability Act of 2025''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (2) Eligible employee.--The term ``eligible employee'' 
        means an employee of an Executive agency employed in a position 
        that--
                    (A) is--
                            (i) at the GS-11, GS-12, GS-13, GS-14, or 
                        GS-15 level; or
                            (ii) a senior-level position, which shall 
                        be defined as a position classified above the 
                        GS-15 level under section 5108 of title 5, 
                        United States Code; and
                    (B) has clearly measurable performance criteria, 
                such as--
                            (i) a project management position;
                            (ii) a position involving administrative or 
                        policy analysis;
                            (iii) an information technology, finance, 
                        or procurement specialist;
                            (iv) a leadership position that involves 
                        managing a team, evaluating program 
                        performance, or supervising operations;
                            (v) a customer service representative; or
                            (vi) a claims processor.
            (3) Executive agency.--The term ``Executive agency'' has 
        the meaning given the term in section 105 of title 5, United 
        States Code.
            (4) Participating agency.--The term ``participating 
        agency'' means an Executive agency, 1 or more employees of 
        which are participating employees in accordance with section 
        3(b)(1).
            (5) Participating employee.--The term ``participating 
        employee'' means an eli…

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Federal Employee Performance and Accountability Act of 2025

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