Bill Details
HR.201 - 119th Congress
Status
Latest action
2025-01-03 - Referred to the House Committee on Oversight and Government Reform.
Introduced Date
2025-01-03
Policy Area
Government Operations and Politics
Committees
View committees (1)
Sponsors
7
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would start a 5-year test program at some federal agencies to tie pay more closely to job performance for certain higher-level employees. It would apply to employees with clear, measurable work, such as project managers, IT staff, analysts, supervisors, customer service workers, and claims processors. Agencies that join the program would set yearly performance goals, give regular feedback and training, and use a standard review system. Workers who do very well could get a raise of up to 10 percent and possibly bonuses or other benefits. Workers who meet expectations would keep their current pay, while workers who fall short would have their pay cut by 10 percent and would receive training to improve. The bill also requires yearly reports on productivity, costs, and employee satisfaction, and a final review after the program ends.
- The program would begin 180 days after the bill becomes law and would last for 5 years.
- Each participating agency would include at least 1 percent and no more than 10 percent of its eligible employees.
- Agency leaders could choose not to participate if they believe it would create risks to national security or public safety, but they would have to explain that decision in writing.
- Performance would be judged using measurable standards such as productivity, quality, and timeliness, along with regular reviews and quarterly feedback.
- The bill would block participating employees from getting certain other federal pay raises and bonuses during the pilot so the new system is the main pay method used.
Official Summaries
Federal Employee Performance and Accountability Act of 2025
This bill establishes a pilot program making pay increases for certain federal employees contingent on job performance.
Under the bill, each executive agency must identify employees to participate in the five-year pilot program from among employees classified at or above the GS-11 level and holding positions with clearly measurable performance criteria. Each agency must select 1%-10% of these employees to participate in the program. An agency may opt out if participation potentially risks national security or public safety.
The bill provides that a participating agency
- must increase an employee's pay by up to 10% if the employee significantly exceeded established performance metrics during the preceding year,
- may not increase the pay of an employee who met established performance metrics during the preceding year, and
- must reduce by 10% the pay of an employee who rates below expectations for the preceding year.
Participating employees are ineligible for annual or locality-based pay increases authorized under current law during the pilot.
The bill also requires agencies to establish performance plans and evaluation systems for participating employees. Agencies must also provide training and resources to help participating employees understand and meet performance requirements.
Participating agencies must report cost savings, productivity metrics, and other information to the Office of Management and Budget (OMB) every year. OMB and the Government Accountability Office must jointly report on the final outcome of the program.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 201 Introduced in House (IH)]
<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 eligible employee who participates in the
Program.
(6) Performance metrics.--The term ``performance metrics'',
with respect to a participating agency, means standards for
participating employees tailored to functions that are specific
to the participating agency, which may include--
(A) productivity standards, which measure
quantifiable outputs such as completed cases, projects,
or responses per quarter;
(B) quality standards, which measure compliance
with protocols, accuracy, and customer satisfaction
rates; and
(C) timeliness standards, which measure compliance
with processing deadlines, efficiency improvements, and
timely task completion.
(7) Program.--The term ``Program'' means the pilot program
established under section 3(a).
SEC. 3. PILOT PROGRAM ELIGIBILITY AND PROGRAM SCOPE.
(a) In General.--During the 5-year period beginning on the date
that is 180 days after the date of enactment of this Act, the Director
shall carry out a pilot program that establishes a performance-based
pay structure for participating employees.
(b) Participation.--
(1) In general.--Subject to paragraph (2), the head of each
Executive agency shall ensure that not less than 1 percent and
not more than 10 percent of eligible employees of the Executive
agency participate in the Program.
(2) Opt-out.--
(A) In general.--The head of an Executive agency
may elect to not have the Executive agency participate
in the Program if the head of the Executive agency
determines that participation could pose risks to
national security or public safety.
(B) Transparency requirement.--If the head of an
Executive agency determines that the Executive agency
should not participate in the Program pursuant to
subparagraph (A), the head of the Executive agency
shall submit to the Director a written justification
for the decision.
SEC. 4. PERFORMANCE MEASUREMENT AND ACCOUNTABILITY.
(a) Annual Performance Metrics.--A participating agency shall
establish annual performance metrics for each participating employee
related to core functions and public service delivery, focusing on
productivity, quality, and timeliness.
(b) Evaluation Process.--The Director shall establish, and each
participating agency shall implement, a standardized, objective
performance evaluation system that includes periodic review of the
performance of a participating employee.
(c) Employee Support and Training.--A participating agency shall
provide training and resources to support participating employees in
understanding and meeting performance metrics, including an
introductory training course and quarterly performance feedback
sessions.
SEC. 5. INCENTIVE PAY STRUCTURE AND NON-MONETARY BENEFITS.
(a) Tiered Salary Increase Structure.--
(1) In general.--A participating agency shall implement a
tiered salary adjustment system for participating employees
based on their annual performance evaluations under section 4
under which, effective as of the first day of the first
applicable pay period beginning on or after the first day of
the second year of the Program, and of each year thereafter, a
participating agency shall adjust (if applicable) the rate of
basic pay of a participating employee in accordance with this
subsection.
(2) Tier 1 (exceeds expectations).--In the case of a
participating employee who significantly exceeded established
performance metrics during the preceding year (referred to in
this section as a ``tier 1 employee''), a participating agency
shall increase the rate of basic pay of the participating
employee by not more than 10 percent.
(3) Tier 2 (meets expectations).--In the case of a
participating employee who met established performance metrics
during the preceding year (referred to in this section as a
``tier 2 employee''), a participating agency may not adjust the
rate of basic pay of the participating employee.
(4) Tier 3 (below expectations).--In the case of a
participating employee who did not meet established performance
metrics during the preceding year (referred to in this section
as a ``tier 3 employee''), the participating agency shall--
(A) reduce the rate of basic pay of the
participating employee by 10 percent; and
(B) provide training or development opportunities
to assist the participating employee in improving
performance.
(b) Bonuses.--The head of a participating agency, at the discretion
of the agency head, may award a bonus to a tier 1 employee.
(c) Non-Monetary Benefits.--The head of a participating agency, at
the discretion of the agency head, may provide a tier 1 employee or
tier 2 employee with flexible scheduling, telework options, and other
non-monetary benefits or incentives, such as technology upgrades and
parking options.
(d) Relation to Title 5 Pay Adjustments, Step-Increases, and Other
Monetary Benefits.--A participating employee shall not be eligible for
any adjustment of pay, advancement in pay, or bonus or other type of
additional monetary compensation under title 5, United States Code,
based on any service performed while the employee is participating in
the Program, including--
(1) adjustment of the rate of basic pay under section 5303,
5304, or 5304a of that title;
(2) advancement in pay to a higher rate within the grade in
which the employee's position is placed under section 5335 or
5336 of that title;
(3) bonuses under section 5753 or 5754 of that title; and
(4) performance awards under section 5384 of that title.
SEC. 6. REPORTING AND ACCOUNTABILITY.
(a) Annual Agency Productivity Reports.--
(1) In general.--For each year in which the Program is
carried out, a participating agency shall submit a report to
the Director that includes the following information:
(A) Quantitative outcomes.--Data on cost savings,
efficiency gains, and overall productivity metrics.
(B) Qualitative outcomes.--Examples of how
productivity improvements have positively impacted
public service outcomes and employee satisfaction.
(2) OMB oversight and recommendations.--The Director
shall--
(A) review each report submitted under paragraph
(1); and
(B) recommend adjustments to participating agencies
as appropriate.
(b) Annual OMB Assessments.--For each year in which the Program is
carried out, the Director shall--
(1) assess the outcomes of the Program with respect to
productivity, budgetary impact, and employee satisfaction; and
(2) publish and submit to Congress a report on the
assessment conducted under paragraph (1).
(c) Final Review.--Not later than 1 year after the date on which
the Program terminates, the Comptroller General of the United States
and the Director shall assess the success of the Program and submit to
Congress a report on the impact of the Program on productivity,
budgets, and employee engagement.
SEC. 7. FUNDING.
(a) No Additional Funds.--No additional funds are authorized to be
appropriated to carry out this Act.
(b) Use of Existing Funds.--The Office of Management and Budget,
the Government Accountability Office, and each participating agency
shall carry out the duties of the respective agency under this Act
using amounts otherwise made available to that agency.
<all>