New Rules Aim to Ease Firing of Policy Employees
Published Date: 6/10/2026
Presidential Document
Summary
This new rule affects federal employees in important policy jobs, making it easier to remove those who don’t do their jobs well while still hiring based on merit, not politics. Starting now, these policy-focused career roles will have clearer rules for accountability and rewards for great work. This change helps keep the government effective and fair, with no extra costs or delays announced.
Analyzed Economic Effects
5 provisions identified: 4 benefits, 1 costs, 0 mixed.
Easier Removal for Policy Employees
If you hold a federal policy-influencing position moved into Schedule Policy/Career, your agency may separate you for unacceptable performance or misconduct under a new 5 CFR provision that expressly allows separation when the agency identifies such grounds in a written notice. The Executive Order implements this change immediately (signed June 3, 2026) and places these positions in the excepted service.
Separate Bonus Pools and Presidential Awards
Heads of agencies with Schedule Policy/Career employees must set aside a separate bonus pool to reward outstanding work, consistent with 5 CFR Part 451. The Office of Personnel Management (OPM) must promptly begin rulemaking under 5 U.S.C. 4504 and 4506 to create a Presidential award program for these employees.
Retention of Competitive Status on Listing
If you already had competitive status when your position was first listed under Schedule Policy/Career, you remain in the excepted service but retain your competitive status under the amended Civil Service Rule (change to 5 CFR 1.3).
One-Year Rule to Gain Competitive Status
If you were in the competitive service and serving a probationary period when your position was first listed under Schedule Policy/Career, you will acquire competitive status after satisfactorily completing 1 year of current continuous service in that position, under the amended 5 CFR 3.1(a).
Merit Hiring and Veteran Preference Required
When appointing someone to Schedule Policy/Career, each agency must follow OPM-prescribed merit-based hiring procedures and apply the principle of veteran preference 'as far as administratively feasible' under the amended 5 CFR 6.2. OPM will publish an annual list of excepted positions.
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Key Dates
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