This act prohibits federal employees from simultaneously holding multiple civil service jobs or contracting with the government, establishing penalties and mandatory annual audits to enforce compliance.
Joni Ernst
Senator
IA
The Dismantling Double Dippers Act of 2025 prohibits federal employees from simultaneously holding two civil service jobs or receiving payment from a government contract while employed by the government, unless explicitly authorized. Violators face mandatory repayment of illegal earnings, potential criminal investigation by the Department of Justice, and agency disciplinary action. The OPM Inspector General is required to conduct annual audits across federal agencies to detect and report on these violations.
Federal Employees Face New Rules: No Double Dipping and Mandatory Annual Audits Under 'Dismantling Double Dippers Act'
The “Dismantling Double Dippers Act of 2025” is straightforward: it sets hard boundaries on how federal employees can earn money from the government. Essentially, if you’re a federal officer or employee, you can’t hold two civil service jobs simultaneously unless a specific law already allows it. More importantly, you also can’t sign a contract to sell goods or services to the U.S. government while you are already drawing a federal paycheck. This bill is all about closing potential loopholes where people might be getting paid twice for government work or using their inside position to land lucrative contracts. If someone knowingly violates these rules, they must pay back every cent received illegally, plus interest, and they could face criminal charges referred to the Department of Justice (SEC. 2).
The New Rules of Engagement for Federal Workers
This isn't just an internal memo; it has teeth. For the average federal worker, this means any side hustles involving selling things to the government—be it consulting services, software, or even office supplies—are strictly off-limits. Imagine a federal IT specialist who also runs a small side business selling specialized data analysis software; this bill says that specialist cannot sell that software to the Department of Transportation or any other federal agency while employed. The intent is clear: to prevent conflicts of interest and ensure employees aren't double-dipping into taxpayer funds.
Accountability Gets a Major Upgrade
The most significant change here is the new oversight structure. Every federal agency is now required to report any suspected violations to their Inspector General (IG) or the IG of the Office of Personnel Management (OPM). But the real game-changer is the mandatory annual audit. The OPM Inspector General must now conduct a yearly review of personnel and payroll records to actively hunt for these violations. This isn't a casual check; the audit requires comparing payroll data with time sheets, OPM’s main HR system, and even IRS data to verify employment (SEC. 2).
What the Audits Mean for Everyone
This level of data cross-referencing is a big deal. For taxpayers, it’s a win because it creates a robust, data-driven system to catch waste and fraud—a system that is specifically required to look at remote work and contract roles, which are often harder to track. For federal employees, it means increased scrutiny. While the audit is designed to catch rule-breakers, it will inherently put every employee's dual employment status under the microscope. The OPM IG must then report back to Congress and agency heads, detailing the number of violations found, how much money was recovered, and what disciplinary actions were taken. This guarantees that the enforcement mechanisms of the bill are transparent and measurable, adding a layer of accountability that was missing before.