Stop GREED Act of 2025
- Bill Number
- S. 396
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Armed Forces and National Security
- Status
- Introduced
- Latest Action
- 2025-02-04: Read twice and referred to the Committee on Veterans' Affairs.
- Last Updated
- 2025-04-29T17:22:01Z
AI-Generated Summary
Purpose
The "Stop Government Rewards Enriching Executives in the District Act of 2025" (Stop GREED Act of 2025) aims to restrict the use of "critical skill incentives" — special bonuses for employees with hard-to-find skills — for high-level executives at the Department of Veterans Affairs (VA). It targets Senior Executive Service (SES) positions, which are top leadership roles in the federal government, to prevent what lawmakers see as excessive rewards, particularly for those based in the VA's Central Office in Washington, D.C.
Key Provisions
- Ban on Incentives for Central Office Executives: Critical skill incentives cannot be given to SES employees (or equivalent senior roles) whose positions are at the VA's Central Office, including those in the Veterans Health Administration (VHA), Veterans Benefits Administration (VBA), and National Cemetery Administration (NCA). This applies regardless of where the employee physically works.
- Limited Incentives for Non-Central Office Executives:
- Incentives can only be provided on an individual basis (not to groups) and require approval from specific senior VA officials, such as the Under Secretaries for Health, Benefits, and Memorial Affairs; the Assistant Secretary for Human Resources and Administration; the Chief Financial Officer; and others designated by the Secretary of Veterans Affairs.
- Proportional Incentives for Mixed-Duty Roles: If an SES employee's main role is at the Central Office but they spend some time at other VA facilities (e.g., regional offices or hospitals), they can receive a partial incentive only for the non-Central Office portion of their work, scaled to the time spent there.
- Reporting Requirements: The VA Secretary must submit an annual report to the Senate and House Committees on Veterans' Affairs detailing which SES employees received these incentives. The first report is due one year after enactment, and future ones can be included in other required congressional reports.
- Definitions: "Senior Executive Service position" refers to high-level federal executive roles as defined in federal law (5 U.S.C. § 3132(a)), which involve policy-making and management.
Significant Changes to Existing Law
This bill amends Section 706(d) of Title 38 of the U.S. Code, which currently allows the VA to provide critical skill incentives to attract or retain employees with specialized expertise. The new paragraph (7) adds strict limitations:
- It introduces a complete prohibition for Central Office SES roles, which were previously eligible.
- It imposes approval processes and proportionality rules for other SES roles, replacing broader departmental discretion.
- It mandates new transparency through annual congressional reporting, which did not exist before.
These changes tighten control over incentive payments, shifting from flexible use to highly regulated application.
Potential Impacts
- On Government Agencies: The VA may face challenges in recruiting or retaining top executives for Central Office roles due to reduced financial perks, potentially affecting leadership in key areas like health care, benefits processing, and cemetery operations. It could also increase administrative burdens from approval processes and reporting.
- On Citizens: Veterans and their families might see indirect effects if VA leadership turnover rises, potentially slowing services. Taxpayers could benefit from reduced spending on executive bonuses, promoting fiscal accountability.
- On International Relations: No direct impacts, as the bill focuses on domestic VA operations.
Main Stakeholders Affected
- VA Senior Executives: SES employees, particularly those at the Central Office, who may lose access to bonuses (potentially thousands of dollars annually), affecting their compensation and job satisfaction.
- VA Leadership: Officials like Under Secretaries and Assistant Secretaries, who must approve incentives and prepare reports, facing added oversight responsibilities.
- Congress: The Senate and House Veterans' Affairs Committees gain enhanced monitoring tools to ensure VA accountability.
- Taxpayers and Veterans: Broader public interest in curbing perceived waste in federal spending on veteran services.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill aligns with existing federal pay and incentive laws (Titles 5 and 38 of the U.S. Code) without conflicting with them. It promotes transparency under congressional oversight powers but could face challenges if seen as overly restrictive on executive pay, though it does not violate civil service protections.
- Constitutional: No major issues; it falls under Congress's authority to regulate federal agencies and appropriations (Article I, Section 8). It does not infringe on free speech, due process, or other rights.
- Political: The acronym "GREED" signals a bipartisan push (introduced by Sens. Moran and Blackburn) against perceived executive excess in government, potentially appealing to fiscal conservatives. It may spark debates on balancing incentives for talent retention versus cost controls in public service, influencing future VA funding bills.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Sen. Blackburn, Marsha [R-TN], Sen. Tillis, Thomas [R-NC]
Recent Actions
- 2025-02-04: Read twice and referred to the Committee on Veterans' Affairs.
- 2025-02-04: Introduced in Senate
Bill Versions
- Stop Government Rewards Enriching Executives in the District Act of 2025 — issued 2025-02-04 — PDF (5 pages)