S 359
Federal Employee Performance and Accountability Act of 2025
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Bill overview
This bill establishes a five-year pilot program to test a performance-based pay structure for certain federal employees. The program would target employees at the GS-11 to GS-15 levels in Executive agencies who hold positions with clearly measurable performance criteria. Participating agencies would implement annual performance metrics and a tiered salary adjustment system based on employee performance, with potential bonuses and non-monetary benefits for high performers. The bill also requires agencies to report on the program’s impact and includes safeguards to protect national security and public safety.
Key provisions
- Establishes a 5-year pilot program for performance-based pay in federal agencies.
- Defines eligible employees as those at GS-11 to GS-15 levels with measurable performance criteria.
- Requires participating agencies to establish annual performance metrics (productivity, quality, and timeliness).
- Implements a tiered salary adjustment system: 15% increase for ‘exceeds expectations,’ no change for ‘meets expectations,’ and a 15% pay reduction for ‘below expectations’ with training.
- Allows agencies to award bonuses to high-performing employees.
- Provides for non-monetary benefits (flexible scheduling, telework) for top performers.
- Prohibits pay adjustments or bonuses based on performance during the pilot program.
- Requires participating agencies to submit annual reports detailing productivity and qualitative outcomes.
Who is affected
- Federal Employees
- Executive Agencies
- Government Accountability Office
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Thomas Tillis
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119th CONGRESS — 1st Session
S. 359
IN THE SENATE OF THE UNITED STATES
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.
This Act may be cited as the Federal Employee Performance and Accountability Act of 2025
.
In this Act:
The term Director means the Director of the Office of Management and Budget.
The term eligible employee means an employee of an Executive agency employed in a position that—
is—
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
an information technology, finance, or procurement specialist;
a leadership position that involves managing a team, evaluating program performance, or supervising operations;
a customer service representative; or
The term Executive agency has the meaning given the term in section 105 of title 5, United States Code.
The term participating agency means an Executive agency, 1 or more employees of which are participating employees in accordance with section 3(b)(1).
The term participating employee means an eligible employee who participates in the Program.
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—
quality standards, which measure compliance with protocols, accuracy, and customer satisfaction rates; and
timeliness standards, which measure compliance with processing deadlines, efficiency improvements, and timely task completion.
The term Program means the pilot program established under section 3(a).
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.
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.
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.
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.
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.
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.
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 15 percent.
provide training or development opportunities to assist the participating employee in improving performance.
The head of a participating agency, at the discretion of the agency head, may award a bonus to a tier 1 employee.
The head of a participating agency, at the discretion of the agency head, may provide a tier 1 employee with flexible scheduling, telework options, and other non-monetary benefits or incentives, such as technology upgrades and parking options.
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—
performance awards under section 5384 of that title.
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:
Data on cost savings, efficiency gains, and overall productivity metrics.
Examples of how productivity improvements have positively impacted public service outcomes and employee satisfaction.
The Director shall—
For each year in which the Program is carried out, the Director shall—
publish and submit to Congress a report on the assessment conducted under paragraph (1).
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.
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.