PolicyBrief
S. 396
119th CongressFeb 4th 2025
Stop Government Rewards Enriching Executives in the District Act of 2025
IN COMMITTEE

The "Stop GREED Act of 2025" limits critical skill incentives for Department of Veterans Affairs Senior Executive Service employees, particularly those at the VA Central Office, requiring individual justification and approval for incentives provided to those not based at the Central Office, and mandating an annual report to Congress.

Jerry Moran
R

Jerry Moran

Senator

KS

LEGISLATION

VA Execs' Incentive Pay Under Scrutiny: Stop GREED Act Targets Central Office Bonuses

The "Stop Government Rewards Enriching Executives in the District Act of 2025," or Stop GREED Act, aims to tighten the purse strings on bonuses for top-level Department of Veterans Affairs (VA) executives. Specifically, it puts the brakes on "critical skill incentives" for Senior Executive Service (SES) employees, particularly those stationed at the VA Central Office in Washington D.C. (SEC. 2).

Capping the Cash: Who's Affected?

The core change is that no employee whose position is based at the VA Central Office can receive these critical skill incentives, regardless of where they actually do their work. For SES employees not at the Central Office, incentives can only be given on a case-by-case basis – no more group bonuses. Plus, getting that extra cash requires a sign-off from a whole chain of command, including Under Secretaries, Assistant Secretaries, and even the General Counsel (SEC. 2).

Think of it like this: If you're a top-level VA exec in D.C., your bonus potential just took a major hit. If you're a high-ranking official working mostly from headquarters but occasionally visiting other VA facilities, any incentive you do get will only apply to the time spent outside D.C. and will be proportionate to that time (SEC. 2). For example, a VA executive who spends 20% of their time at a regional facility could only receive an incentive reflecting that 20% of their work.

Paperwork and Potential Pitfalls

The Act also mandates a yearly report to the Senate and House Committees on Veterans' Affairs, detailing which SES employees received these incentives (SEC. 2). The first report is due one year after the Act becomes law. This is where the increased accountability comes in – Congress will be keeping a closer eye on how these bonuses are handed out.

While the goal is to curb potentially excessive executive compensation, there's a flip side. This could make it harder to attract and keep talented people in crucial VA leadership roles, especially outside of D.C. The added red tape of individual approvals might also slow things down, potentially creating a bottleneck when quick decisions on incentives are needed. Plus, focusing so much on limiting pay could distract from other important factors that keep employees motivated and performing well. This is a classic trade-off: greater control and oversight can sometimes mean less flexibility and efficiency.