2026-03354RuleSignificant

Uncle Sam Speeds Up: Easier Hires for Fresh College Grads

Published Date: 2/20/2026

Rule

Summary

Starting March 23, 2026, the government is making it easier to hire college grads for certain federal jobs. This new rule gives agencies more flexibility to bring in fresh talent quickly and fairly, helping recent grads jumpstart their careers. It’s a win for job seekers and the government, with no extra costs but a smoother hiring process.

Analyzed Economic Effects

7 provisions identified: 3 benefits, 3 costs, 1 mixed.

Direct Hiring for Recent Graduates

Starting March 23, 2026, agencies may appoint college graduates directly into competitive service jobs at the GS-11 level and below. The rule implements 5 U.S.C. 3115 and lets agencies hire eligible baccalaureate or graduate degree holders into professional and administrative positions without following some usual competitive procedures.

Two-Year Eligibility Window Clarified

You are eligible if you apply no later than two years after completing your bachelor’s or graduate degree, or no later than two years after release from an intervening full-time active-duty uniformed service of at least four years. Agencies may accept applications from people who expect to finish their degree soon, and agencies must verify degree completion with documentation such as transcripts or diplomas.

Veterans' Preference Not Required

Under this authority, agencies may appoint eligible and qualified college graduates without regard to veterans' preference or to rating and ranking rules found in 5 U.S.C. 3309–3319 and 3330. That means veterans' preference rules do not apply to selections made under this hiring authority.

15% Agency Appointment Cap

An agency may not appoint more than 15 percent of its competitive examining appointments (to professional or administrative positions at GS-11 or below) in a fiscal year using this authority. Agencies must base the 15 percent on the number of individuals the agency appointed under competitive examining procedures in the previous fiscal year, and OPM may set a lower limit governmentwide or for individual agencies.

Career-Conditional Tenure on Hire

A person hired under this college graduate authority becomes a career-conditional employee upon appointment unless they already have career tenure or are excepted under Sec. 315.201(c). This defines the initial tenure status for people appointed under the rule.

Agency Implementation Cost Estimate

OPM estimates initial implementation will cost about 100 hours of work per agency in year one, using an assumed labor cost that yields about $15,630 per agency and about $1,250,400 in total governmentwide. OPM does not expect substantial ongoing administrative cost increases from the rule.

DoD Exclusion During Direct Hire Period

The rule does not apply to the Department of Defense while DOD's post-secondary student direct hire authority is effective. Section 1116 of Public Law 118-31 extended the DOD direct hire authority for post-secondary students until September 30, 2030.

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Key Dates

Published Date
Rule Effective
2/20/2026
3/23/2026

Department and Agencies

Department
Independent Agency
Agency
Personnel Management Office
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