# OPM Expands Federal Bonus Approval Authority

The Office of Personnel Management (OPM) has revised its policy to permit federal agency heads to approve employee cash awards up to **$25,000** without requiring prior OPM review. This change increases agency discretion in recognizing exceptional employee performance and aligns OPM's policy with existing authorities at agencies such as the Internal Revenue Service (IRS) and Department of Defense (DoD). While this adjustment removes an administrative step, it does not affect salary increases or other incentive types and still mandates presidential approval for awards exceeding $25,000.

- **Why this matters:** Procurement and human resources professionals should note the streamlined approval process for substantial employee bonuses, which may impact agency budgeting and award management practices.
- Agencies can now expedite recognition of high-performing employees, potentially improving workforce motivation and retention without additional OPM oversight.
- Organizations should be aware of community concerns regarding fairness and potential misuse, emphasizing the need for transparent and equitable award processes.
- This policy update may influence internal controls and financial planning related to employee awards across federal agencies.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 24, 2026

### Government Entities
- Office of Personnel Management (OPM)
- Internal Revenue Service (IRS)
- Department of Defense (DoD)

### Key Quotes
> This isn't for the average worker, this is for the leadership who already makes 3 times what we do. I'll be happy if I can still even get $500-750 for an Outstanding rating.
> — Community commenter

> OPM is making it easier for federal agencies to give larger cash awards to exceptional employees without having to get approval from OPM first.
> — Original poster

### Sources
- [Federal agencies can now award up to $25,000 in employee bonuses without OPM review](https://www.reddit.com/r/FedEmployees/comments/1wp3nbp/federal_agencies_can_now_award_up_to_25000_in) - reddit-fedemployees