S. 124 — Restore VA Accountability Act of 2025

This section establishes a new 38 U.S.C. §712 authorizing the Secretary of Veterans Affairs (VA) to remove from civil service, demote, or suspend covered VA supervisor-employees based on substantial evidence of performance deficiencies or misconduct, bypassing performance improvement plans and chapter 43 of title 5, U.S. Code. The process requires an initial decision considering factors such as offense severity, intent, repetition, and the supervisor's role; Secretary review for substantial evidence; advance notice with evidence file; representation; and an internal grievance process, all within strict timelines not exceeding 15 business days aggregate (7 business days for employee response, 15 business days for Secretary decision, and under 21 days for grievance). Final decisions are conclusive if un-grieved and are not appealable to the Merit Systems Protection Board, with limited judicial review only for arbitrary/capricious actions, procedural violations, or lack of substantial evidence (and no penalty review except constitutional issues). Demotions reduce grade and pay immediately, prohibit administrative leave during appeals unless the employee reports for duty or uses accrued leave, and withhold pay/benefits otherwise. Whistleblower protections prohibit actions without Office of Special Counsel approval during related cases or until resolution of disclosures to VA's Assistant Secretary for Accountability and Whistleblower Protection.

This section modifies procedures under 38 U.S.C. §713 for reprimanding, suspending, reassigning, demoting, or removing Department of Veterans Affairs (VA) senior executives for misconduct or poor performance, as follows: (1) requires the Secretary's determination of warranted action to be supported by substantial evidence; (2) directs initial deciding employees to apply exclusively specified factors—including offense nature and seriousness, relation to duties and intent, and job level or prominence—and requires the Secretary to uphold such decisions if supported by substantial evidence; (3) specifies that the internal grievance process must take fewer than 21 days after the final decision under subsection (b)(2) (previously, fewer than 21 days total); (4) prohibits courts, except on constitutional issues, from reviewing or mitigating imposed penalties; and (5) applies these procedures to misconduct or performance since enactment of the Department of Veterans Affairs Accountability and Whistleblower Protection Act of 2017 (P.L. 115-41). (As background, these procedures expedite discipline of VA Senior Executive Service employees relative to standard civil service protections, with decisions generally final within 15 business days and limited judicial review.)

This section modifies disciplinary procedures under 38 U.S.C. 714 for covered employees of the Department of Veterans Affairs (VA)—including senior executives, supervisors, management officials, and certain others—for performance or misconduct (as authorized by the VA Accountability and Whistleblower Protection Act of 2017) by (1) requiring the Secretary's determinations to be supported by substantial evidence; (2) mandating that initial decisions exclusively consider five specified factors (e.g., nature and seriousness of the offense, covered individual's job level and past record, mitigating circumstances) with Secretary review to uphold if supported by substantial evidence; (3) eliminating the requirement that such procedures supersede inconsistent collective bargaining agreements (while adding a new subsection (h) restating that requirement); (4) authorizing removals, demotions, or suspensions without a performance improvement plan; (5) prohibiting administrative judges, the Merit Systems Protection Board, and courts from reviewing or mitigating penalties except on constitutional issues; (6) striking an unspecified paragraph (d)(10); (7) clarifying applicability to misconduct since enactment of the 2017 act; and (8) expanding the definition of covered individuals to explicitly include hybrid appointees under 38 U.S.C. 7401 and title 5 supervisors or management officials. The section further amends 38 U.S.C. 7403(f)(3) to grant the Secretary discretion, for certain Veterans Health Administration positions held by covered individuals (as defined in 38 U.S.C. 712 or 714), to resolve disciplinary matters under section 712, section 714, or title 5 procedures.