MERIT Act of 2025
Sponsored By: Representative Loudermilk
Introduced
Summary
Overhauls how the federal government handles employee discipline and related pay and benefits. This bill would replace Chapter 43 with a new adverse-action framework and add new rules on furloughs, annuity reductions for certain felony convictions, bonus recoupment, and longer probationary periods.
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- Federal employees would face a new furlough cause with a set appeal timeline. Furloughs could be appealed to the Merit Systems Protection Board within 10 business days, and many probationary periods would extend to two years for new appointees.
- Retirees and annuitants could see annuities reduced if finally convicted of a felony tied to official duties. Agencies must give at least 15 business days notice, update records and OPM must recalculate benefits within 30 business days, and MSPB review would be available.
- Agencies and OPM would get new rulemaking work and authorities. OPM must issue key furlough rules within 180 days, agencies gain explicit authority to recoup bonuses after adverse findings and must enforce a prohibition on certain bonuses for five years after the fiscal year with an adverse finding, with repayment plans and hearings set by agencies.
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 1 benefits, 7 costs, 0 mixed.
Emergency furloughs during shutdowns
If enacted, an “emergency furlough” would mean a furlough caused by a lapse in funding. OPM would set rules within 180 days. Agencies would give notice as soon as possible, and other furlough procedures would not apply. You could appeal to the Merit Systems Protection Board within 10 business days. These rules would take effect on the earlier of 180 days after enactment or when OPM issues its rules.
Faster discipline for federal employees
If enacted, agencies would move discipline cases faster and use a preponderance-of-the-evidence test. You would get notice, 7 business days to respond, and a final decision within 15 business days after notice. You could appeal within 10 business days of the action. Supervisors would face this faster process and agencies would not need performance improvement plans for them. One year after enactment, Chapter 43 performance-removal rules would be repealed, though actions started earlier could continue.
Pension cuts for felony misconduct
If enacted, agencies could remove periods of “felonious service” from a federal annuity after a final felony conviction tied to official duties and warranting removal. You would get at least 15 business days’ notice and 10 business days to respond. You could appeal to the Merit Systems Protection Board within 10 business days. Agencies would update retirement records within 30 business days, and OPM would recalculate within 30 business days. It would apply to acts after enactment, with a spouse cooperation exception and a lump‑sum credit for the felonious‑service share.
Pay protection for placed senior executives
If enacted, when a career senior executive is placed into a new job under certain rules, the agency would pay the highest of three rates: the new job’s rate, the rate for the job held before joining the SES, or the rate just before placement. If placed under a different rule, pay would match the new position’s rate. This would start one year after enactment.
Fewer suspension and grievance protections
If enacted, fewer workers would qualify for short-suspension protections. New hires and those in probation or trial periods could be excluded. Union grievance processes would no longer cover certain adverse actions and some reduction‑in‑force furloughs, demotions, or separations. These changes would take effect one year after enactment.
Five-year bonus ban and payback
If enacted, an adverse finding by your agency would block bonuses for five years after that fiscal year. If the finding happens in the same fiscal year you got a post‑enactment bonus, the agency could order repayment after notice and a hearing. Agencies could offer a repayment plan and may require a repayment agreement for new bonuses. You could appeal ineligibility or repayment orders to the Merit Systems Protection Board.
Limited pay during demotion appeals
If enacted, after a grade reduction you would be paid at the new grade starting that day. Agencies could not put you on administrative leave during an appeal. You would be paid only if you report to work or use approved leave like annual, sick, family medical, military, or court leave. This would take effect one year after enactment.
Two-year probation for new hires
If enacted, most new federal hires would have a two-year probation. If the job requires formal training, the two years would run after training. If it requires a license, the two years could run after the license is granted. Agencies would have to state probation terms in job postings and send reminders at 1 year, 6 months, 3 months, and 30 days before it ends. SES career appointees initially appointed after the effective date would also have a two-year probation.
Sponsors & CoSponsors
Sponsor
Loudermilk
GA • R
Cosponsors
Carter (GA)
GA • R
Sponsored 1/23/2025
Houchin
IN • R
Sponsored 1/23/2025
Crawford
AR • R
Sponsored 1/23/2025
Owens
UT • R
Sponsored 1/23/2025
Collins
GA • R
Sponsored 1/23/2025
Luna
FL • R
Sponsored 1/23/2025
Webster (FL)
FL • R
Sponsored 1/23/2025
Mann
KS • R
Sponsored 1/23/2025
Franklin, Scott
FL • R
Sponsored 1/23/2025
Meuser
PA • R
Sponsored 1/23/2025
Babin
TX • R
Sponsored 1/23/2025
Tenney
NY • R
Sponsored 1/23/2025
Baird
IN • R
Sponsored 1/23/2025
Steube
FL • R
Sponsored 1/23/2025
Burchett
TN • R
Sponsored 1/23/2025
Weber (TX)
TX • R
Sponsored 1/31/2025
Hill (AR)
AR • R
Sponsored 2/7/2025
Crane
AZ • R
Sponsored 2/11/2025
Rose
TN • R
Sponsored 2/21/2025
Brecheen
OK • R
Sponsored 2/21/2025
Harris (MD)
MD • R
Sponsored 2/21/2025
Miller (IL)
IL • R
Sponsored 2/24/2025
De La Cruz
TX • R
Sponsored 2/26/2025
Harris (NC)
NC • R
Sponsored 3/18/2025
Roll Call Votes
No roll call votes available for this bill.
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