MERIT Act

This proposal would require federal agencies to offer jobs back to probationary federal employees who were recently terminated. Agencies must place them in the same or a similar job, with equal or better benefits. If they accept, they receive a lump-sum payment to make up for the pay they missed since being let go. If a person already took a different federal job, they would get a payment to cover any pay gap between the old job and the new one. These payments count as taxable wages, and agencies must start paying within 90 days after pay amounts are set by the Office of Personnel Management (OPM) .

Agencies must notify eligible employees within 30 days of the law taking effect. Workers then have 30 days to say yes or no, and agencies must place those who accept within another 30 days. These separations are treated as “involuntary without cause.” OPM sets the pay figures used to calculate the payments. The Government Accountability Office must also report on “mass terminations” (15 or more separations in a 30‑day period under the same or related actions) that occurred from January 20, 2025, to the date the law takes effect, and OPM must report back to Congress on how many people are reinstated .

Key points

• Who is affected: Probationary federal employees who were recently terminated.
• What changes: Agencies must offer reinstatement to a same or similar job with equal or better benefits, plus lump‑sum back pay (or pay‑gap make‑up if already in another federal job). Payments are treated as wages for tax purposes.
• When: Agency notice within 30 days of enactment; employees have 30 days to decide; agencies must place accepting employees within 30 days; payments begin within 90 days after OPM sets pay amounts; GAO report due within 60 days and OPM report within 90 days of enactment .