119-hr201

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 201 Introduced in House

    (IH) ]

<DOC>

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.

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

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Federal Employee Performance and 
Accountability Act of 2025''.

SEC. 2. DEFINITIONS.

 In this Act:

    (1) Director.--The term ``Director'' means the Director of 
 the Office of Management and Budget.

    (2) Eligible employee.--The term ``eligible employee'' 
 means an employee of an Executive agency employed in a position 
 that--
        (A) is--
            (i) at the GS-11, GS-12, GS-13, GS-14, or 
 GS-15 level; or
            (ii) a senior-level position, which shall 
 be defined as a position classified above the 
 GS-15 level under 

section 5108 of title 5, 
 United States Code; and
        (B) has clearly measurable performance criteria, 
 such as--
            (i) a project management position;
            (ii) a position involving administrative or 
 policy analysis;
            (iii) an information technology, finance, 
 or procurement specialist;
            (iv) a leadership position that involves 
 managing a team, evaluating program 
 performance, or supervising operations;
            (v) a customer service representative; or
            (vi) a claims processor.

    (3) Executive agency.--The term ``Executive agency'' has 
 the meaning given the term in 

section 105 of title 5, United 
 States Code.

    (4) Participating agency.--The term ``participating 
 agency'' means an Executive agency, 1 or more employees of 
 which are participating employees in accordance with 

section 3

    (b)

    (1) .

    (5) Participating employee.--The term ``participating 
 employee'' means an eligible employee who participates in the 
 Program.

    (6) Performance metrics.--The term ``performance metrics'', 
 with respect to a participating agency, means standards for 
 participating employees tailored to functions that are specific 
 to the participating agency, which may include--
        (A) productivity standards, which measure 
 quantifiable outputs such as completed cases, projects, 
 or responses per quarter;
        (B) quality standards, which measure compliance 
 with protocols, accuracy, and customer satisfaction 
 rates; and
            (C) timeliness standards, which measure compliance 
 with processing deadlines, efficiency improvements, and 
 timely task completion.

    (7) Program.--The term ``Program'' means the pilot program 
 established under 

section 3

    (a) .

SEC. 3. PILOT PROGRAM ELIGIBILITY AND PROGRAM SCOPE.

    (a) In General.--During the 5-year period beginning on the date 
that is 180 days after the date of enactment of this Act, the Director 
shall carry out a pilot program that establishes a performance-based 
pay structure for participating employees.

    (b) Participation.--

    (1) In general.--Subject to paragraph

    (2) , the head of each 
 Executive agency shall ensure that not less than 1 percent and 
 not more than 10 percent of eligible employees of the Executive 
 agency participate in the Program.

    (2) Opt-out.--
        (A) In general.--The head of an Executive agency 
 may elect to not have the Executive agency participate 
 in the Program if the head of the Executive agency 
 determines that participation could pose risks to 
 national security or public safety.
        (B) Transparency requirement.--If the head of an 
 Executive agency determines that the Executive agency 
 should not participate in the Program pursuant to 
 subparagraph
        (A) , the head of the Executive agency 
 shall submit to the Director a written justification 
 for the decision.

SEC. 4. PERFORMANCE MEASUREMENT AND ACCOUNTABILITY.

    (a) Annual Performance Metrics.--A participating agency shall 
establish annual performance metrics for each participating employee 
related to core functions and public service delivery, focusing on 
productivity, quality, and timeliness.

    (b) Evaluation Process.--The Director shall establish, and each 
participating agency shall implement, a standardized, objective 
performance evaluation system that includes periodic review of the 
performance of a participating employee.
            (c) Employee Support and Training.--A participating agency shall 
provide training and resources to support participating employees in 
understanding and meeting performance metrics, including an 
introductory training course and quarterly performance feedback 
sessions.

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

    (a) Tiered Salary Increase Structure.--

    (1) In general.--A participating agency shall implement a 
 tiered salary adjustment system for participating employees 
 based on their annual performance evaluations under 

section 4 
 under which, effective as of the first day of the first 
 applicable pay period beginning on or after the first day of 
 the second year of the Program, and of each year thereafter, a 
 participating agency shall adjust (if applicable) the rate of 
 basic pay of a participating employee in accordance with this 
 subsection.

    (2) Tier 1 (exceeds expectations).--In the case of a 
 participating employee who significantly exceeded established 
 performance metrics during the preceding year (referred to in 
 this section as a ``tier 1 employee''), a participating agency 
 shall increase the rate of basic pay of the participating 
 employee by not more than 10 percent.

    (3) Tier 2 (meets expectations).--In the case of a 
 participating employee who met established performance metrics 
 during the preceding year (referred to in this section as a 
 ``tier 2 employee''), a participating agency may not adjust the 
 rate of basic pay of the participating employee.

    (4) Tier 3 (below expectations).--In the case of a 
 participating employee who did not meet established performance 
 metrics during the preceding year (referred to in this section 
 as a ``tier 3 employee''), the participating agency shall--
        (A) reduce the rate of basic pay of the 
 participating employee by 10 percent; and
        (B) provide training or development opportunities 
 to assist the participating employee in improving 
 performance.

    (b) Bonuses.--The head of a participating agency, at the discretion 
of the agency head, may award a bonus to a tier 1 employee.
            (c) Non-Monetary Benefits.--The head of a participating agency, at 
the discretion of the agency head, may provide a tier 1 employee or 
tier 2 employee with flexible scheduling, telework options, and other 
non-monetary benefits or incentives, such as technology upgrades and 
parking options.
            (d) Relation to Title 5 Pay Adjustments, Step-Increases, and Other 
Monetary Benefits.--A participating employee shall not be eligible for 
any adjustment of pay, advancement in pay, or bonus or other type of 
additional monetary compensation under title 5, United States Code, 
based on any service performed while the employee is participating in 
the Program, including--

    (1) adjustment of the rate of basic pay under 

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

    (2) advancement in pay to a higher rate within the grade in 
 which the employee's position is placed under 

section 5335 or 
 5336 of that title;

    (3) bonuses under 

section 5753 or 5754 of that title; and

    (4) performance awards under 

section 5384 of that title.

SEC. 6. REPORTING AND ACCOUNTABILITY.

    (a) Annual Agency Productivity Reports.--

    (1) In general.--For each year in which the Program is 
 carried out, a participating agency shall submit a report to 
 the Director that includes the following information:
        (A) Quantitative outcomes.--Data on cost savings, 
 efficiency gains, and overall productivity metrics.
        (B) Qualitative outcomes.--Examples of how 
 productivity improvements have positively impacted 
 public service outcomes and employee satisfaction.

    (2) OMB oversight and recommendations.--The Director 
 shall--
        (A) review each report submitted under paragraph

    (1) ; and
        (B) recommend adjustments to participating agencies 
 as appropriate.

    (b) Annual OMB Assessments.--For each year in which the Program is 
carried out, the Director shall--

    (1) assess the outcomes of the Program with respect to 
 productivity, budgetary impact, and employee satisfaction; and

    (2) publish and submit to Congress a report on the 
 assessment conducted under paragraph

    (1) .
            (c) Final Review.--Not later than 1 year after the date on which 
the Program terminates, the Comptroller General of the United States 
and the Director shall assess the success of the Program and submit to 
Congress a report on the impact of the Program on productivity, 
budgets, and employee engagement.

SEC. 7. FUNDING.

    (a) No Additional Funds.--No additional funds are authorized to be 
appropriated to carry out this Act.

    (b) Use of Existing Funds.--The Office of Management and Budget, 
the Government Accountability Office, and each participating agency 
shall carry out the duties of the respective agency under this Act 
using amounts otherwise made available to that agency.
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