* **MERIT Act of 2025:** Aims to reform federal employment practices by modifying performance-based actions, adverse action procedures, grievance processes, senior executive accountability, furlough rules, annuity reductions for felonies, bonus recoupment, and probationary periods. The Act seeks to streamline processes, enhance accountability, and ensure consistency across federal agencies, with most provisions taking effect one year after enactment.
Barry Loudermilk
Representative
GA-11
The MERIT Act of 2025 aims to reform federal employment practices by modifying performance-based actions, adverse action procedures, and employee grievance processes. It streamlines the process for addressing misconduct or poor performance, extends probationary periods, and allows for recouping bonuses from employees found to have engaged in misconduct. Additionally, the act reduces annuity benefits for employees convicted of felonies related to their official duties and modifies procedures for furloughs. The Act intends to create a more efficient and accountable federal workforce.
Federal Employee Firings Get Easier: MERIT Act Overhauls Civil Service Rules, Effective 2026
The "Modern Employment Reform, Improvement, and Transformation Act of 2025," or MERIT Act, significantly changes the rules for federal employment, making it easier for agencies to discipline and terminate employees. The law goes into effect one year after its enactment, overriding existing collective bargaining agreements (SEC. 12).
Power Shift: Agency vs. Employee
The MERIT Act shifts considerable power to federal agencies in managing their workforce. A key change is the termination of performance-based actions under Chapter 43 (SEC 2). Previously, agencies had specific procedures for addressing poor performance. Now, they can take "adverse actions" – including firing – based on either performance or conduct, using a "preponderance of the evidence" standard (SEC. 3). This essentially means if the agency believes it's more likely than not an employee did something wrong, they can be disciplined or fired. The agency must consider the nature of the offense, the employee's job level, and past records, but the bar for taking action is arguably lower.
For example, a data analyst at the Department of Labor with a previously clean record who makes a significant error in a report could now be subject to immediate disciplinary action, without necessarily going through a performance improvement plan first. Previously, a process might have involved identifying the issue, providing training, and setting goals for improvement. The MERIT Act removes that formal process.
Streamlined Discipline, Reduced Recourse
The Act also streamlines the disciplinary process and limits employee appeal options. Agencies must provide written notice and give employees 7 business days to respond with evidence (SEC. 3). The agency then has 15 business days to make a final decision. Employees can appeal to the Merit Systems Protection Board (MSPB), but the timeframe is tight – just 10 business days after the action takes effect. Crucially, the Act restricts the ability of employees to grieve adverse actions or reductions in force through negotiated procedures (SEC. 4). This means union contracts providing additional protections or alternative dispute resolution methods are overridden.
Imagine a veteran park ranger facing demotion due to a disputed policy violation. Under the MERIT Act, their ability to challenge the demotion through a union-negotiated grievance process is significantly curtailed. Their primary recourse is a rapid appeal to the MSPB.
New Rules for Senior Execs and Supervisors
Senior executives and supervisors face similar changes. The Act allows agencies to take action against them based on performance or misconduct, using the same "preponderance of evidence" standard (SEC. 5 & 6). The process mirrors the general employee procedure: 7 business days to respond to a notice, 15 business days for a final agency decision, and a 10-business-day window to appeal to the MSPB. "Misconduct" is explicitly defined to include failure to accept a directed reassignment (SEC. 5). The Act also modifies appraisal system requirements, allowing agencies to seek appraisals from within or outside of the civil service (SEC. 5).
Longer Probation, Financial Penalties
The MERIT Act extends probationary periods. For Senior Executive Service positions, the probationary period doubles to two years (SEC. 10). For competitive service positions, it's two years, or even longer if the job requires formal training or a license (SEC. 11). This extended probationary period means new hires have less job security for a longer time.
Furthermore, the Act introduces financial penalties. Federal employees convicted of a felony related to their duties will have their annuity (retirement benefits) reduced (SEC. 8). Employees who receive bonuses and are later subject to an "adverse finding" (a determination of policy violation or a crime punishable by over a year in prison) must repay those bonuses (SEC. 9).
Bottom Line
The MERIT Act of 2025 represents a significant overhaul of federal employment law. It grants agencies greater authority to discipline and dismiss employees, streamlines the disciplinary process, limits employee appeal options, and introduces new financial penalties. While proponents might argue this increases accountability and efficiency, the Act's practical effect is a substantial reduction in job security and due process protections for federal workers.