Federal Employee Performance and Accountability Act of 2025

This bill would test a new pay system for some federal workers. For five years, each executive agency must place 1%–10% of eligible staff into a pilot group. These workers are generally GS-11 and above in jobs with clear, measurable goals. An agency can opt out if taking part could risk national security or public safety. The program starts 180 days after the bill becomes law. Agencies must set clear yearly goals, use a standard review process, and give training and regular feedback to help employees succeed.

Pay would depend on results. If an employee far exceeds goals, pay can go up by up to 10%. If they meet goals, pay does not change. If they fall short, pay goes down by 10%. Top performers may also receive bonuses and non-cash perks like flexible schedules and telework. While in the pilot, participants do not receive normal annual or locality raises under current law. Agencies must report results each year to the Office of Management and Budget, and there is a final review by OMB and the Government Accountability Office. No new money is provided; agencies must use existing funds.

Key points

• Who is affected: A small share (1%–10%) of eligible Executive Branch employees, generally GS-11 and above in roles with clear performance measures. Agencies may opt out for security or safety reasons.
• What changes: Pay tied to performance (up to +10%, 0, or −10%); possible bonuses and non-cash perks; no standard raises while in the pilot; required training and regular feedback.
• When: Starts 180 days after enactment and runs for 5 years; pay adjustments begin in the program’s second year; annual reports during the pilot; final review within a year after it ends.