2025-03799RuleWallet

Feds Force States to Hire Fair for Low-Income Program Cash

Published Date: 3/11/2025

Rule

Summary

The Office of Personnel Management updated its rules on March 11, 2025, about how state and local agencies must use fair hiring systems when managing federally funded low-income programs. This change affects agencies receiving federal grants, requiring them to stick to merit-based hiring to keep their funding. The update reverses earlier flexibility and aims to keep hiring fair and transparent without extra costs or delays.

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

State/Local Agencies Regain Staffing Choice

If your state or local agency runs a federally funded, state‑administered low‑income program covered by the Intergovernmental Personnel Act (IPA), then as of March 11, 2025 the agency may choose the staffing method it considers most appropriate, including using contract employees, rather than being limited to using only state or local government personnel. This updates and reverses OPM guidance from June 10, 2024 and follows Executive Order 14192 issued January 31, 2025.

Certification Requirement for Merit Systems

State and local agencies that receive federal funds for programs covered by the IPA must certify that they are using a merit personnel system that meets the standards in 5 CFR 900.603 in order to receive funds. OPM reiterated this certification requirement in its March 11, 2025 guidance.

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Key Dates

Published Date
Rule Effective
3/11/2025
3/11/2025

Department and Agencies

Department
Independent Agency
Agency
Personnel Management Office
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