Workforce Acceleration & Recapitalization Incentive Implementation

On or around April 7, 2025, Deputy Secretary of Defense issued a memorandum that directed Department of Defense (DOD) component heads to "identify and reserve appropriate funding for civilian awards and bonus pools to recognize and reward truly outstanding performance." The Secretary showed support for "broader utilization of bonuses" to recruit and retain civilian employees. The memo directed the Under Secretary of Defense for Personnel and Readiness to provide, within 60 days, "recommended changes to the Department's civilian personnel performance management and promotion systems that would assist in identifying and incentivizing top performers" as well as proposals for additional merit-based incentives. The memo was issued alongside a broader civilian workforce reduction effort.