The Modern Employment Reform, Improvement, and Transformation Act of 2025, or MERIT Act of 2025, aims to streamline and expedite processes for addressing federal employee performance and misconduct. It repeals the current Chapter 43 authority for performance-based actions, integrating them into the broader adverse action framework under Chapter 75 of title 5, United States Code. This shift is intended to create a more unified and efficient system for managing employee issues. A key provision of the bill amends Section 7513 to cover both performance and misconduct, requiring agencies to prove their case by a preponderance of the evidence . It establishes specific factors for agencies to consider when making initial decisions and mandates that agencies uphold decisions supported by substantial evidence . The bill also introduces expedited timelines, requiring notice, response, and a final decision within an aggregate of 15 business days, and explicitly states that agencies are not required to place an employee on a performance improvement plan (PIP) before taking action. For employees subject to a reduction in grade, the bill stipulates that they will immediately receive the lower rate of pay and cannot be placed on administrative leave with pay during an appeal. Similar expedited procedures and standards are applied to Senior Executive Service (SES) members and supervisors , with new provisions for SES pay retention and a dedicated section for supervisor actions. Disciplinary actions against supervisors for whistleblower retaliation are also accelerated. The MERIT Act extends probationary periods to two years for both competitive service employees and SES members, a significant increase from the current one-year period. Agencies are required to clearly communicate the terms and conditions of these probationary periods, including any formal training or license requirements. This aims to ensure new employees are thoroughly evaluated before gaining full career status. To enhance accountability, the bill prohibits employees from grieving adverse actions or reductions in force (RIFs) through collective bargaining agreements, directing these matters to statutory appeal processes like the Merit Systems Protection Board (MSPB). This provision seeks to prevent delays and ensure consistent application of personnel rules across the federal government. The legislation also introduces new financial accountability measures. Agencies are prohibited from awarding bonuses for five years to employees who have an "adverse finding" against them, defined as a serious policy or legal violation. Furthermore, if an adverse finding occurs after a bonus is awarded, the agency must order the employee to repay the bonus amount, with employees required to sign a certification agreeing to this condition. Another significant change involves the reduction of annuities for employees convicted of felonies related to their official duties. If a federal employee is convicted of a felony based on acts or omissions in their official capacity that would warrant removal, the period of "felonious service" will not count towards their annuity calculation. This provision includes procedures for notice, response, and appeal to the MSPB, with an exception for spouses who cooperate with authorities. Finally, the bill modifies furlough procedures, introducing the concept of an "emergency furlough" due to a lapse in appropriations, which would involve minimal procedural rights. For general furloughs, the Office of Personnel Management (OPM) is tasked with promulgating new regulations outlining specific procedures and appeal rights. The Act generally takes effect one year after enactment, and its established procedures will supersede any inconsistent collective bargaining agreements.