S. 1768 — TALENTS Act

This section defines 12 terms used in the Act, including: (1) advanced degree and qualifying educational institution, as defined in 5 C.F.R. §362.102 (or successor regulation), with the Director of the Office of Personnel Management determining whether a master's certificate qualifies as an advanced degree; (2) agency, meaning an executive agency under 5 U.S.C. §105 and including the Government Publishing Office; (3) agency PMF Coordinator; (4) Director (i.e., Director of the Office of Personnel Management); (5) Executive Resources Board; (6) Federal Executive Board (i.e., established under §11); (7) Fellow; (8) metropolitan area; (9) principal area officer; (10) principal regional officer; (11) Program (i.e., Presidential Management Fellows Program); and (12) special representative.

This section establishes the Presidential Management Fellows Program to attract outstanding individuals from diverse academic and career backgrounds committed to excellence in federal leadership and management of public policies and programs. (As background, the Presidential Management Fellows Program previously operated under regulations at subpart D of 5 CFR part 362 and provides two-year developmental assignments for recent graduates, with potential conversion to permanent federal positions.) It requires the Director of the Office of Personnel Management to (1) determine the annual number of fellows based on agency input, specifically increasing positions to 200% of the number in the fiscal year preceding enactment during FY2026 through FY2031; and (2) establish applicant qualifications. It further directs agencies to appoint finalists according to their leadership recruitment needs and permits agencies placing fellows outside the Washington, DC, area to commit to headquarters rotations, to the extent practicable, and to facilitate interactions with regional Federal Executive Boards.

This section establishes procedures for the annual announcement of the Program, applicant and Fellow eligibility, and selection of finalists. It limits eligibility to individuals who have obtained (or expect to complete by August 31 of the competition year) an advanced degree from a qualifying educational institution within two years before the announcement (for applicants) or service start (for Fellows); it permits multiple applications subject to forfeiture of prior finalist status upon reapplication in the next cycle. It further directs the Director to select finalists through a rigorous structured assessment process that grants hiring preference to preference eligibles (i.e., veterans, disabled veterans, and certain family members, as defined in 5 U.S.C. §2108) and to publish the finalist list for agencies.

This section authorizes federal agencies to appoint Fellows to the Program for two-year terms under Schedule D of the excepted service (per 5 CFR part 302 or successor regulations) and a specific excepted service authority (5 CFR 213.3402(c) or successor regulation), with the Director establishing an eligibility period for appointing finalists. It further (1) permits agencies to extend a Fellow's term for up to 120 days in rare or unusual circumstances per agency criteria; (2) allows appointments at GS-09, GS-11, or GS-12 levels (or equivalents); (3) designates the appointment term as a trial period but not a probationary period; (4) requires a full-time work schedule but permits a part-time schedule for up to 180 days if approved by the agency as not impeding Program requirements, with the Fellow's agreement updated accordingly (and no entitlement to approval); and (5) deems such appointments to be made under an agency's direct-hire authority (5 U.S.C. §§ 3115, 3116).

This section establishes requirements for the development, evaluation, promotion, and certification of Presidential Management Fellows (PMFs) in the flagship federal leadership development program for recent graduates. Specifically, it directs agencies to (1) approve an individual development plan (IDP) for each Fellow not later than 90 days after the program begins in a fiscal year, developed mutually with the supervisor and in consultation with the agency PMF coordinator or mentor; (2) provide at least 80 hours of formal interactive training per year (excluding mandatory trainings such as information security and ethics) addressing IDP competencies; (3) assign a mentor outside the Fellow's chain of command not later than 90 days after the appointment starts; (4) provide at least one rotational or developmental assignment of 120 to 180 days with full-time management or technical responsibilities in a different work unit, which may occur within the Fellow's organization, agency component, or another agency; and (5) offer optional short-term rotational assignments of 30 to 180 days. It further requires the Office of Personnel Management (OPM) to provide leadership development resources and information on training opportunities; authorizes agencies to promote qualified Fellows without creating an entitlement; and directs each agency's Executive Resources Board (ERB) to evaluate Fellows not later than 45 days before the program ends in a fiscal year, certify successful completion (making Fellows eligible for conversion under section 10), notify Fellows not later than 30 days before completion, and forward certifications to OPM, with non-certified Fellows eligible to request OPM reconsideration within 15 days.

This section authorizes a Fellow to transfer to another participating agency without a break in service if the receiving agency meets program requirements, the original agency releases the Fellow, and the new agency appoints the Fellow. Upon transfer, the Fellow's prior service time continues toward program completion; the new agency must notify the Director; and if the transfer occurs within the Fellow's first 180 days, the original agency may request reimbursement of one-quarter of the placement fee from the new agency.

This section establishes procedures for withdrawal from and readmission to the Program. **(a) Withdrawal.**—A Fellow may withdraw at any time, treated as a resignation from federal service (except prior obligations such as recruitment incentives remain); the agency must notify the Director. A Fellow with a prior permanent competitive service appointment who withdraws for reasons other than misconduct, poor performance, or suitability may, at agency discretion, be placed in a permanent competitive service position (not subject to appeal). **(b) Readmission.**—Fellows who withdraw due to misconduct, poor performance, or suitability, as determined by the agency, are barred from readmission. Others may petition the original agency for readmission (in writing with justification); if approved, the agency submits to the Director of OPM, who may overrule the approval (not subject to appeal).

This section establishes procedures for the removal of Fellows and their treatment in reductions in force. It authorizes an agency to remove a Fellow for misconduct, poor performance, or suitability, requiring written notification to the Director; requires a Fellow's appointment to end at the conclusion of the two-year program period plus any approved extensions under section 5(b), unless converted to a permanent position under section 10; and provides that, if not converted or extended, the appointment expires 30 days after denial of program completion certification under section 6(d)(3) or denial of an extension request. It places Fellows in excepted service group II for reduction-in-force purposes under 5 C.F.R. § 351.502 (or successor regulation).

This section authorizes agencies to convert a successfully certified Fellow—upon program completion within time limits under section 5, including any approved extension—to a term or permanent position in the competitive service (i.e., the merit system portion of the federal civil service) for which the Fellow is qualified, without a break in service. It further permits such conversion to an equivalent or lower full performance level position at a different agency if (1) the original agency cannot convert the Fellow due to budget constraints, reorganization, position abolishment, or similar reasons unrelated to the Fellow's certification, performance, or suitability; (2) the conversion occurs before the end of the program period plus any extension; and (3) other specified conditions are met.

This section establishes Federal Executive Boards in 26 metropolitan areas (i.e., Albuquerque-Santa Fe through Seattle) to strengthen management and administration of executive branch field operations under the authority of the Director of the Office of Personnel Management (OPM). (As background, Federal Executive Boards coordinate federal agency activities at the regional level to improve service delivery, information sharing, and management efficiency.) The section authorizes the OPM Director to dissolve, merge, divide, or establish additional boards; requires agency heads to designate principal regional or area officers (and special representatives) as members, with alternates permitted; and directs boards to adopt bylaws (subject to OPM approval), elect a chair for a term of not more than one year, designate staff from member agencies (with additional staff requiring OPM approval), and take actions only by majority vote of members. It further provides for automatic termination of board subunits and external affiliations upon the chair's term expiration (unless reestablished); requires conformance with law and prudent resource use; and assigns the OPM Director responsibility for oversight, including directing activities, consulting with boards, and maintaining communication channels through regional OPM representatives.

This section directs the Director to submit to the Senate Committee on Homeland Security and Governmental Affairs and the House Committee on Oversight and Government Reform, not later than 3 years after enactment and every 3 years thereafter, a report on the Program that includes an analysis of structural challenges facing the Program and recommendations to strengthen it.