The MERIT Act of 2025 would overhaul how federal employee discipline and removals are handled. It repeals the current Chapter 43 performance-based action framework and replaces it with a faster, largely preponderance-of-evidence standard (rather than the prior standards) for actions based on performance or misconduct. The bill expands the scope to include supervisors and Senior Executives, creates new or renamed procedures (with tight timeframes), and adds remedies such as the potential reduction of annuities for felonies linked to removal actions, recoupment of bonuses, and extended probation periods for SES and competitive-service employees. It also broadens furlough rules, adjusts whistleblower retaliation discipline timelines, and increases agency authority to address misconduct with greater speed and conditional financial consequences. In sum, if enacted, the MERIT Act would significantly accelerate adverse actions, extend accountability to a broader set of personnel (including supervisors and senior leaders), and introduce new financial-risk mechanisms (bonuses, annuities) tied to misconduct or performance issues. It is designed to streamline discipline and firing processes while shifting several penalties and procedures toward tighter timelines and broader enforcement mechanisms. > Note: The provided text shows drafting choices and may contain internal drafting inconsistencies (e.g., references to “preponderance of the evidence” alongside language about “substantial evidence”). The summary reflects the bill as written.
Key Points
- 1Repeal and replacement of Chapter 43 performance-based actions: Section 2 repeals 4303 and modifies related provisions; adverse actions for performance or misconduct would proceed under a new framework with a preponderance-of-the-evidence standard and updated procedures.
- 2Streamlined cause, procedure, and appeal for personnel actions: Section 3 revises Sec. 7513 to emphasize speed and explicit factors for initial decisions, 15-business-day timelines for notices and decisions, 7-business-day response windows, and MSPB appeals within 10 business days. It also allows actions without a prior performance-improvement plan and extends rights to representation and written decisions.
- 3Expanded scope to supervisors and senior executives: Section 6 creates new Sec. 7514 for supervisors (with parallel process to 7513) and Section 5 modifies pay and discipline for Senior Executives, including changes to pension/retention provisions, suspension rules, and removal procedures.
- 4New penalties and enforcement tools: Sections 8 and 9 add a new framework to reduce annuities for felonies connected to misconduct/removal actions (8323) and authorize recoupment of bonuses or awards if misconduct/adverse findings occur (Sec. 4531). This creates financial consequences beyond removal itself.
- 5Furlough, probation, and probationary periods: Section 7 reorganizes furlough rules (including emergency furloughs) and imposes new probationary-period lengths: SES probation extends from 1 year to 2 years (Section 10), and competitive-service probation may also extend to 2 years under revised rules (Section 11). The guidance for implementing furloughs and related regulations would be set by the Office of Personnel Management.