Amend title 10, United States Code, to improve recruitment and retention of the cyber workforce of the Department of Defense, and for other purposes.

Summary

Creates a new excepted-service hiring and personnel system inside the Department of Defense to recruit and retain cybersecurity and digital talent. The Secretary of Defense may establish qualified excepted-service cyber positions (including a Defense Digital Executive Service and Defense Digital Senior Level posts), hire outside normal Title 5 rules, set higher pay (up to 150% of Executive Schedule Level I) and offer bonuses/allowances within statutory caps, and convert or transfer certain competitive-service positions into the new excepted service. The law requires an implementation plan, regulations coordinated with OPM, annual OPM reports to Congress for up to five years, and a GAO assessment of hiring/retention effects across agencies.

• Authorizes the Secretary of Defense to create excepted-service cyber positions and a Defense Digital Executive Service to hire high-demand digital talent.
• Allows appointment outside Title 5 competitive hiring rules and sets pay authority up to 150% of Executive Schedule Level I plus limited bonuses/allowances.
• Permits conversion of existing competitive-service positions to the new excepted service, with incumbents allowed to refuse conversion.
• Requires a Secretary-submitted implementation plan; authorities take effect 30 days after plan submission.
• Mandates OPM-coordinated regulations and annual OPM reports to Congress for up to five years detailing hiring, retention, and use of incentives.
• Directs GAO to assess recruitment and retention differences across agencies using special hiring/pay authorities within five years.
• Includes definitions and technical amendments to federal personnel statute to codify the new authorities.
• Sets a two-year probationary period for new appointees and allows interagency transfer agreements between excepted and competitive service roles.