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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.
1/8/2025, 1:40 PM
Summary of Bill HR 201
Under this bill, participating Federal employees will be evaluated based on their performance and productivity levels, rather than receiving standard pay raises or promotions based solely on tenure. This shift towards a performance-based pay structure is intended to incentivize employees to work harder and more efficiently, ultimately leading to better outcomes for the public.
The pilot program will be carefully monitored and evaluated over the course of 5 years to determine its effectiveness in achieving its goals. If successful, the program may be expanded to include more Federal employees in the future. Overall, Bill 119 HR 201 represents a potential shift in how Federal employees are compensated, with a focus on rewarding high performance and improving overall efficiency within the public service sector.
Congressional Summary of HR 201
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 its 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.
