Performance Fund Alive, But Barely

The House Appropriations Committee meanwhile endorsed, although only in a limited way, the administration’s other main pay initiative for federal employees in the current budget cycle, creation of a “performance fund” to reward high-performing employees. The panel set aside $2.5 million to start the fund, in which the Office of Personnel Management would dole out money for agencies to use as performance awards. However, that amount was far short of the $500 million the administration requested and in effect only gets the program on the books. Further, even that amount million is contingent on separate legislation being enacted to authorize the fund. The House version of a spending bill (HR-1588) would authorize the fund, although the counterpart Senate version wouldn’t. That bill remains in a conference.