This bill, titled the Federal Employee Performance and Accountability Act of 2025, mandates a 5-year pilot program to introduce a performance-based pay structure for specific federal employees. The program, overseen by the Director of the Office of Management and Budget (OMB), aims to enhance productivity, accountability, and employee satisfaction within public service. It targets eligible employees at the GS-11 through GS-15 levels and senior-level positions, provided their roles have clearly measurable performance criteria such as project management, administrative analysis, or leadership.

Executive agencies are required to have between 1 percent and 10 percent of their eligible employees participate in the program. However, an agency head may elect to opt out if participation poses risks to national security or public safety, provided a written justification is submitted to the Director. Participating agencies must establish annual performance metrics focusing on productivity, quality, and timeliness, and implement a standardized, objective evaluation system with periodic reviews and employee support through training and feedback sessions.

The core of the program is a tiered salary adjustment system: employees significantly exceeding metrics receive up to a 10 percent pay increase, those meeting expectations see no change, and those falling below expectations face a 10 percent pay reduction but receive training. Additionally, agency heads may award discretionary bonuses and non-monetary benefits like flexible scheduling or telework to high-performing employees. Crucially, participating employees become ineligible for other Title 5 pay adjustments, step increases, or bonuses during their program involvement.

Participating agencies must submit annual reports on quantitative and qualitative outcomes, which the OMB Director will review to recommend adjustments. The Director will also conduct annual assessments on the program's impact on productivity, budget, and employee satisfaction, reporting findings to Congress. A final review by the Comptroller General and the Director will assess the program's overall success after its termination, with all activities funded through existing agency appropriations without additional funds.