PoliticsActive · 12h

OPM raises agency bonus authority cap to $25,000 without central review

Director Scott Kupor delegates approval power to agency heads as part of federal performance-management reforms.

OPM raised the bonus threshold agency heads can approve from $10,000 to $25,000 without central oversight, effective September 21, 2026.
Awards must still meet a "highly exceptional and unusually outstanding" standard, and redelegation is limited to senior HR and management officials.
The move excludes presidential awards, presidential rank awards, and SES performance bonuses; awards over $25,000 remain subject to presidential approval.

Scott Kupor OPM Director

12 PM4 PM8 PMnow · 12:58 AM ET

1 Yesterday

Memo details conditions and scope of new bonus authority

Coverage reveals the memo requires agency heads to certify that awards recognize efforts that are "highly exceptional and unusually outstanding." The change does not apply to presidential awards, presidential rank awards, or Senior Executive Service performance awards exceeding $25,000. Some agencies, including the Department of Defense and Internal Revenue Service, already held separate authority for $25,000 bonuses.

“Agencies should use this authority to provide larger awards to their highest performers, ensuring that the employees who contribute most to agency missions and results receive recognition commensurate with their contributions.”
— Scott Kupor, OPM Director · source
backgroundSep 21

OPM Director Kupor issues memo raising agency bonus authority to $25,000 — The U.S. Office of Personnel Management issues a memo allowing federal agency heads to approve individual bonuses of up to $25,000 for outstanding employees without requiring OPM approval, up from the previous $10,000 threshold. Authority may be redelegated only to a chief of staff, chief human capital officer, or bureau/component head.