I 

119TH CONGRESS 

1ST SESSION H. R. 201 

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. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 3, 2025 

Ms. TENNEY introduced the following bill; which was referred to the 

Committee on Oversight and Government Reform 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Employee Per5 formance and Accountability Act of 2025’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


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1 (1) DIRECTOR.—The term ‘‘Director’’ means 

2 the Director of the Office of Management and Budg3 et. 

4 (2) ELIGIBLE EMPLOYEE.—The term ‘‘eligible 

5 employee’’ means an employee of an Executive agen6 cy employed in a position that— 

7 (A) is— 

8 (i) at the GS–11, GS–12, GS–13, 

9 GS–14, or GS–15 level; or 

10 (ii) a senior-level position, which shall 

11 be defined as a position classified above 

12 the GS–15 level under section 5108 of title 

13 5, United States Code; and 

14 (B) has clearly measurable performance 

15 criteria, such as— 

16 (i) a project management position; 

17 (ii) a position involving administrative 

18 or policy analysis; 

19 (iii) an information technology, fi20 nance, or procurement specialist; 

21 (iv) a leadership position that involves 

22 managing a team, evaluating program per23 formance, or supervising operations; 

24 (v) a customer service representative; 

25 or 


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1 (vi) a claims processor. 

2 (3) EXECUTIVE AGENCY.—The term ‘‘Executive 

3 agency’’ has the meaning given the term in section 

4 105 of title 5, United States Code. 

5 (4) PARTICIPATING AGENCY.—The term ‘‘par6 ticipating agency’’ means an Executive agency, 1 or 

7 more employees of which are participating employees 

8 in accordance with section 3(b)(1). 

9 (5) PARTICIPATING EMPLOYEE.—The term 

10 ‘‘participating employee’’ means an eligible employee 

11 who participates in the Program. 

12 (6) PERFORMANCE METRICS.—The term ‘‘per13 formance metrics’’, with respect to a participating 

14 agency, means standards for participating employees 

15 tailored to functions that are specific to the partici16 pating agency, which may include— 

17 (A) productivity standards, which measure 

18 quantifiable outputs such as completed cases, 

19 projects, or responses per quarter; 

20 (B) quality standards, which measure com21 pliance with protocols, accuracy, and customer 

22 satisfaction rates; and 

23 (C) timeliness standards, which measure 

24 compliance with processing deadlines, efficiency 

25 improvements, and timely task completion. 


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1 (7) PROGRAM.—The term ‘‘Program’’ means 

2 the pilot program established under section 3(a). 

3 SEC. 3. PILOT PROGRAM ELIGIBILITY AND PROGRAM 

4 SCOPE. 

5 (a) IN GENERAL.—During the 5-year period begin6 ning on the date that is 180 days after the date of enact7 ment of this Act, the Director shall carry out a pilot pro8 gram that establishes a performance-based pay structure 

9 for participating employees. 

10 (b) PARTICIPATION.— 

11 (1) IN GENERAL.—Subject to paragraph (2), 

12 the head of each Executive agency shall ensure that 

13 not less than 1 percent and not more than 10 per14 cent of eligible employees of the Executive agency 

15 participate in the Program. 

16 (2) OPT-OUT.— 

17 (A) IN GENERAL.—The head of an Execu18 tive agency may elect to not have the Executive 

19 agency participate in the Program if the head 

20 of the Executive agency determines that partici21 pation could pose risks to national security or 

22 public safety. 

23 (B) TRANSPARENCY REQUIREMENT.—If 

24 the head of an Executive agency determines 

25 that the Executive agency should not particiVerDate Sep 11 2014 21:08 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H201.IH H201

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1 pate in the Program pursuant to subparagraph 

2 (A), the head of the Executive agency shall sub3 mit to the Director a written justification for 

4 the decision. 

5 SEC. 4. PERFORMANCE MEASUREMENT AND ACCOUNT6 ABILITY. 

7 (a) ANNUAL PERFORMANCE METRICS.—A partici8 pating agency shall establish annual performance metrics 

9 for each participating employee related to core functions 

10 and public service delivery, focusing on productivity, qual11 ity, and timeliness. 

12 (b) EVALUATION PROCESS.—The Director shall es13 tablish, and each participating agency shall implement, a 

14 standardized, objective performance evaluation system 

15 that includes periodic review of the performance of a par16 ticipating employee. 

17 (c) EMPLOYEE SUPPORT AND TRAINING.—A partici18 pating agency shall provide training and resources to sup19 port participating employees in understanding and meet20 ing performance metrics, including an introductory train21 ing course and quarterly performance feedback sessions. 

22 SEC. 5. INCENTIVE PAY STRUCTURE AND NON-MONETARY 

23 BENEFITS. 

24 (a) TIERED SALARY INCREASE STRUCTURE.— 


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1 (1) IN GENERAL.—A participating agency shall 

2 implement a tiered salary adjustment system for 

3 participating employees based on their annual per4 formance evaluations under section 4 under which, 

5 effective as of the first day of the first applicable 

6 pay period beginning on or after the first day of the 

7 second year of the Program, and of each year there8 after, a participating agency shall adjust (if applica9 ble) the rate of basic pay of a participating employee 

10 in accordance with this subsection. 

11 (2) TIER 1 (EXCEEDS EXPECTATIONS).—In the 

12 case of a participating employee who significantly 

13 exceeded established performance metrics during the 

14 preceding year (referred to in this section as a ‘‘tier 

15 1 employee’’), a participating agency shall increase 

16 the rate of basic pay of the participating employee 

17 by not more than 10 percent. 

18 (3) TIER 2 (MEETS EXPECTATIONS).—In the 

19 case of a participating employee who met established 

20 performance metrics during the preceding year (re21 ferred to in this section as a ‘‘tier 2 employee’’), a 

22 participating agency may not adjust the rate of basic 

23 pay of the participating employee. 

24 (4) TIER 3 (BELOW EXPECTATIONS).—In the 

25 case of a participating employee who did not meet 


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1 established performance metrics during the pre2 ceding year (referred to in this section as a ‘‘tier 3 

3 employee’’), the participating agency shall— 

4 (A) reduce the rate of basic pay of the par5 ticipating employee by 10 percent; and 

6 (B) provide training or development oppor7 tunities to assist the participating employee in 

8 improving performance. 

9 (b) BONUSES.—The head of a participating agency, 

10 at the discretion of the agency head, may award a bonus 

11 to a tier 1 employee. 

12 (c) NON-MONETARY BENEFITS.—The head of a par13 ticipating agency, at the discretion of the agency head, 

14 may provide a tier 1 employee or tier 2 employee with 

15 flexible scheduling, telework options, and other non-mone16 tary benefits or incentives, such as technology upgrades 

17 and parking options. 

18 (d) RELATION TO TITLE 5 PAY ADJUSTMENTS, 

19 STEP-INCREASES, AND OTHER MONETARY BENEFITS.— 

20 A participating employee shall not be eligible for any ad21 justment of pay, advancement in pay, or bonus or other 

22 type of additional monetary compensation under title 5, 

23 United States Code, based on any service performed while 

24 the employee is participating in the Program, including— 


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1 (1) adjustment of the rate of basic pay under 

2 section 5303, 5304, or 5304a of that title; 

3 (2) advancement in pay to a higher rate within 

4 the grade in which the employee’s position is placed 

5 under section 5335 or 5336 of that title; 

6 (3) bonuses under section 5753 or 5754 of that 

7 title; and 

8 (4) performance awards under section 5384 of 

9 that title. 

10 SEC. 6. REPORTING AND ACCOUNTABILITY. 

11 (a) ANNUAL AGENCY PRODUCTIVITY REPORTS.— 

12 (1) IN GENERAL.—For each year in which the 

13 Program is carried out, a participating agency shall 

14 submit a report to the Director that includes the fol15 lowing information: 

16 (A) QUANTITATIVE OUTCOMES.—Data on 

17 cost savings, efficiency gains, and overall pro18 ductivity metrics. 

19 (B) QUALITATIVE OUTCOMES.—Examples 

20 of how productivity improvements have posi21 tively impacted public service outcomes and em22 ployee satisfaction. 

23 (2) OMB OVERSIGHT AND RECOMMENDA24 TIONS.—The Director shall— 


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1 (A) review each report submitted under 

2 paragraph (1); and 

3 (B) recommend adjustments to partici4 pating agencies as appropriate. 

5 (b) ANNUAL OMB ASSESSMENTS.—For each year in 

6 which the Program is carried out, the Director shall— 

7 (1) assess the outcomes of the Program with re8 spect to productivity, budgetary impact, and em9 ployee satisfaction; and 

10 (2) publish and submit to Congress a report on 

11 the assessment conducted under paragraph (1). 

12 (c) FINAL REVIEW.—Not later than 1 year after the 

13 date on which the Program terminates, the Comptroller 

14 General of the United States and the Director shall assess 

15 the success of the Program and submit to Congress a re16 port on the impact of the Program on productivity, budg17 ets, and employee engagement. 

18 SEC. 7. FUNDING. 

19 (a) NO ADDITIONAL FUNDS.—No additional funds 

20 are authorized to be appropriated to carry out this Act. 

21 (b) USE OF EXISTING FUNDS.—The Office of Man22 agement and Budget, the Government Accountability Of23 fice, and each participating agency shall carry out the duVerDate Sep 11 2014 21:08 Feb 03, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H201.IH H201

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1 ties of the respective agency under this Act using amounts 

2 otherwise made available to that agency. 

Æ 


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