Rule2025-15238
Sunset of the Pathways Presidential Management Fellows Program
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 11, 2025
Effective
August 11, 2025
Issuing agencies
Personnel Management Office
Abstract
As directed by the Executive Order "Commencing the Reduction of the Federal Bureaucracy" issued February 19, 2025, the Office of Personnel Management (OPM) is rescinding the regulations on the Pathways Presidential Management Fellows Program and making conforming amendments.
Full Text
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<title>Federal Register, Volume 90 Issue 152 (Monday, August 11, 2025)</title>
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[Federal Register Volume 90, Number 152 (Monday, August 11, 2025)]
[Rules and Regulations]
[Pages 38604-38607]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-15238]
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OFFICE OF PERSONNEL MANAGEMENT
5 CFR Parts 213, 315, 362, and 537
RIN 3206-AO85
Sunset of the Pathways Presidential Management Fellows Program
AGENCY: Office of Personnel Management.
ACTION: Final rule.
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SUMMARY: As directed by the Executive Order ``Commencing the Reduction
of the Federal Bureaucracy'' issued February 19, 2025, the Office of
Personnel Management (OPM) is rescinding the regulations on the
Pathways Presidential Management Fellows Program and making conforming
amendments.
DATES: This final rule is effective on August 11, 2025.
FOR FURTHER INFORMATION CONTACT: Katika Floyd by telephone at (202)
606-0960; or by email at <a href="/cdn-cgi/l/email-protection#99fcf4e9f5f6e0d9f6e9f4b7fef6ef"><span class="__cf_email__" data-cfemail="abcec6dbc7c4d2ebc4dbc685ccc4dd">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background and Legal Authority
This final rule is issued in accordance with section 2(e) of
Executive Order (E.O.) 14217, ``Commencing the Reduction of the Federal
Bureaucracy'' (90 FR 10577, Feb. 25, 2025), which directed the Director
of Office of Personnel Management (OPM) to initiate the process to
withdraw the Pathways Presidential Management Fellows (PMF) Program
(PMF Program or Program) regulations in subpart D of part 362, Code of
Federal Regulations (CFR), and to take any other steps necessary to
promptly terminate the PMF Program. This action is taken under the
authority vested in the President by the Constitution and laws of the
United States of America, including 5 U.S.C. 3301 and 3302.
The PMF program (formerly, Presidential Management Intern Program)
was established by President Jimmy Carter in 1977 to attract to Federal
service a limited number of individuals, with exceptional management
potential, who received special academic training (advanced degrees) in
planning and managing public programs and policies. E.O. 12008, 42 FR
43373. Since that time, the PMF Program had evolved to cover a variety
of academic disciplines covering a multitude of Federal occupations and
was no longer limited to a small number of participants. It is no
longer necessary to have a separate employment program for those with
advanced degrees when the same can be accomplished using the other
available employment authorities and programs for interns, fellows, and
college graduates. Just as the creation of the PMF Program was
consistent with the President's authority under 5 U.S.C. 3301 and 3302,
similarly the sunset of the PMF Program falls within the President's
discretion. OPM will continue to assess the need for fellowship,
internship, and leadership development programs and work within its
existing authorities to attract top talent to the Federal government.
To date, OPM has taken steps to begin the sunset of the PMF
Program:
<bullet> Notifying agency PMF coordinators on the actions to be
taken as the PMF Program sunsets;
<bullet> Notifying Presidential Management Fellows (Fellows) of
Executive Order requirements to terminate the PMF program and the
sunset activities that were underway;
<bullet> Canceling the announcement of the 2025 PMF finalists; and
<bullet> Drafting transitional guidance to address current PMF
employment matters.
This final rule removes the regulations governing the PMF Program
in subpart D of part 362 and makes conforming changes in parts 213 and
315. Specifically, references to the PMF Program and/or subpart D are
removed from Sec. Sec. 213.3402, 315.201, 315.713, 362.101, 362.103,
362.104, 362.105, 362.107, 362.109, and 537.102 of title 5 of the Code
of Federal Regulations. In addition, 5 CFR 362.110 is removed. OPM is
also amending the authority citations for parts 213, 315, and 362 as
appropriate to reflect the termination of the PMF Program and to
conform to the requirements of 1 CFR part 21, subpart B.
In addition to the regulatory changes in this final rule, OPM notes
that less than 650 employees remain employed under the PMF appointment
authority. OPM is publishing a Variation to facilitate the transition
of current Fellows out of the Program while promptly terminating the
PMF Program. (See the Notification published elsewhere in this edition
of the Federal Register.)
Impact of This Rulemaking
The elimination of the PMF Program in subpart D of part 362 from
the CFR will eliminate a centralized recruitment and employment program
for individuals with advanced degrees the President has determined is
unnecessary. OPM anticipates that there will be negligible
administrative costs associated with administering the sunset of the
program, and OPM anticipates net savings to the Government based on the
efficiencies created by agencies not having to contribute to the
overhead costs for operating a centralized program and instead using
other existing recruitment and hiring programs that can serve the same
purpose for bringing talent into the Federal government.
Agencies contributed $2M to $2.5M annually to operate the
centralized program. About 30 agencies participated each year,
contributing a set fee per hire (most recently $8,000 per Fellow).
These expenses covered OPM administrative costs such as running the
recruitment, evaluation, and selection processes and providing training
for Fellows. Agencies already have procedures and systems in place to
conduct these activities; eliminating the duplication of effort
represents cost savings. The expenses also covered ongoing support for
agencies and Fellows and monitoring agency compliance with Program
requirements, functions that are now eliminated. OPM estimates that
sunsetting the Program will result in savings of roughly 80% of these
costs to the Government, or $1.8M annually.
Agencies also expended resources for operation of the agency's PMF
Program. Program regulations required agencies to provide a PMF
Coordinator with required functions, agency-funded training (in
addition to the OPM-provided training), detail opportunities,
mentoring, and Executive Resource Board (ERB) review and certification.
Some of the functions are eliminated with the sunsetting of the
Program, and agencies already have systems in place to provide the
remaining functions for their employees. Although OPM does not have
data regarding these additional costs borne by agencies, we can
estimate portions of these expenses.
For the purpose of this cost analysis, the assumed average salary
rate of Federal employees serving as an agency's PMF Coordinator will
be the rate in 2025 for GS-12, step 5, from the Washington, DC,
locality pay table ($114,923 annual locality rate and $55.07 hourly
locality rate). We assume that the total dollar value of labor, which
includes wages, benefits, and overhead, is equal to 200 percent of the
wage rate, resulting in an assumed labor cost of $110.14 per hour. We
estimate
[[Page 38605]]
that PMF Coordinators spent an average of 520 hours annually on work
related to the PMF Program with an average hourly cost of $110.14. This
work would result in estimated annual savings of about $52,273 per
agency, and about $1.7 million Governmentwide.
With respect to the ERB, we assume an ERB at agencies participating
in the PMF Program has an average of 5 members. Based on the average
salary for the ES pay plan in September 2024 (most recent available
data), we assume an average salary rate of $207,313, or $99.67 per
hour.\1\ We assume the total dollar value of labor, which includes
wages, benefits, and overhead, is equal to 200 percent of the wage
rate, resulting in an assumed labor cost of $199.34 per hour. We assume
an ERB member will spend approximately 30 minutes to review and certify
each Fellow. Based on an average of the last three years'
participation, OPM estimates approximately 330 Fellows would have
completed the Program each year, requiring ERB review and
certification. Because the ERB will no longer need to review and
certify PMF Fellows prior to conversion, OPM estimates annual savings
of $165,000 Governmentwide.
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\1\ Average SES pay drawn from Office of Personnel Management
FedScope data, available at <a href="https://www.fedscope.opm.gov/">https://www.fedscope.opm.gov/</a>.
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Overall, OPM expects that elimination of the PMF program will
result in Government savings of at least $3,665,000 annually. OPM notes
that this savings value is conservative in that we have used the
minimum grade for one PMF Coordinator per agency. Some agencies with
large PMF Programs have more than one PMF Coordinator, and some
Coordinators hold higher grades with higher rates of pay. In addition,
although participation in the Program dropped due to COVID-19,
participation has been steadily increasing. OPM also had anticipated
that changes made to the Program in 2024 would encourage participation
by more agencies. Thus, the number of participants requiring
certification is likely lower than would have been realized had the
Program continued. Finally, this value does not reflect costs incurred
by agencies other than the PMF Program fees, costs associated with PMF
Coordinators, and costs associated with ERB certification.
Regulatory Compliance
1. Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b)(B), OPM finds that there is good cause
to issue this final rule without prior notice and comment. In E.O.
14217, the President directed OPM to withdraw the regulations at part D
of part 362 and to take other steps necessary to terminate the PMF
Program promptly. The PMF Program regulations do not allow for the
prompt termination of the program, particularly in view of the
employees remaining in the Program; thus, this final rule implements
the specific Presidential direction provided in the E.O. to remove the
regulations governing the Program. OPM lacks any discretion in this
rulemaking action. OPM's authority to issue regulations creating and
governing the PMF Program was based entirely on the President's
delegation to OPM of authority to prescribe rules governing the civil
service and to prescribe exceptions to the competitive service. With
the issuance of the E.O., the President has made clear his revocation
of that delegation with respect to the PMF Program, and OPM now lacks
authority to continue the PMF Program regulations in part 362. No
amount of public input could give OPM the authority to reconstitute the
PMF Program. Therefore, notice and public comment procedures are
unnecessary.
Similarly, pursuant to 5 U.S.C. 553(d)(3), OPM finds that there is
good cause to make this final rule effective immediately upon
publication. This final rule codifies actions taken under direct
Presidential authority. Removing the regulations immediately provides
transparency and may reduce confusion as the PMF Program is no longer
operational. Further, a delayed effective date serves no practical
purpose here since no adjustment period is needed for any regulated
party to come into or otherwise prepare for compliance. Finally, the
variation (published as part of this notice) granted by OPM provides
instructions to agencies regarding transitioning all remaining
employees out of the Program as the regulatory provisions removed in
this final rule do not permit the prompt dissolution of the program as
directed by the President.
2. Regulatory Review
The Office of Information and Regulatory Affairs in the Office of
Management and Budget has designated this as a significant regulatory
action under E.O. 12866 section 3(f). Accordingly, OPM has examined the
impact of this rule as required by E.O.s 12866 and 13563, which direct
agencies to assess all costs and benefits of available regulatory
alternatives and, if regulations are necessary, to select regulatory
approaches that maximize net benefits (including potential economic,
environmental, public health, and safety effects, distributive impacts,
and equity). A regulatory impact analysis must be prepared for rules
that have an annual effect on the economy of $100 million or more or
adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities. This rulemaking does not reach that threshold. This action
is considered an E.O. 14192 deregulatory action. We estimate that this
rule generates $3.43 million in annualized cost savings at a 7%
discount rate, discounted relative to year 2024, over a perpetual time
horizon.
3. Regulatory Flexibility Act
The Director of OPM certifies that this rule will not have a
significant economic impact on a substantial number of small entities
because it applies only to Federal agencies and employees.
4. Federalism
This regulation will not have substantial direct effects on the
States, on the relationship between the National Government and the
States, or on distribution of power and responsibilities among the
various levels of government. Therefore, in accordance with Executive
Order 13132, the Director of OPM certifies that this rule does not have
sufficient federalism implications to warrant preparation of a
Federalism Assessment.
5. Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA)
requires that agencies assess anticipated costs and benefits before
issuing any rule that would impose spending costs on State, local, or
Tribal governments in the aggregate, or on the private sector, in any 1
year of $100 million in 1995 dollars, updated annually for inflation.
That threshold is currently approximately $206 million. This rulemaking
will not result in the expenditure by State, local, or Tribal
governments, in the aggregate, or by the private sector, in excess of
the threshold. Thus, no written assessment of unfunded mandates is
required.
6. Paperwork Reduction Act
This rule does not affect any reporting or recordkeeping
requirements under the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35).
List of Subjects
5 CFR Part 213
Government employees, Reporting and recordkeeping requirements.
[[Page 38606]]
5 CFR Part 315
Government employees.
5 CFR Part 362
Administrative practice and procedure, Colleges and universities,
Government employees.
5 CFR Part 537
Administrative practice and procedure, Government employees,
Students, Wages.
Office of Personnel Management.
Stephen Hickman,
Federal Register Liaison.
For reasons stated in the preamble, the Office of Personnel
Management amends 5 CFR parts 213, 315, 362, and 537 as follows:
PART 213--EXCEPTED SERVICE
0
1. The authority citation for part 213 is revised to read as follows:
Authority: 5 U.S.C. 3161, 3301 and 3302; 38 U.S.C. 4301 et seq.
E.O. 10577, 19 FR 7521, 3 CFR 1954-1958 Comp., p. 218.
Sec. 213.101 also issued under 5 U.S.C. 2103.
Sec. 213.3102 also issued under 5 U.S.C. 3307, 8337(h), 8456; 38
U.S.C. 4301 et seq. E.O. 12125, 44 FR 16879, 3 CFR, 1979 Comp., p.
16879; and E.O. 13124, 64 FR 31103, 3 CFR, 1999 Comp., p. 31103;
E.O. 13562, 75 FR 82585, 3 CFR, 2010 Comp, p. 291; E.O. 14217, 90 FR
10577; and Presidential Memorandum--Improving the Federal
Recruitment and Hiring Process, 75 FR 27157.
Sec. 213.3202 also issued under 5 U.S.C. 3304.
Subpart C--Excepted Schedules
Sec. 213.3402 [Amended]
0
2. Amend Sec. 213. 3402 by removing paragraph (c).
PART 315--CAREER AND CAREER-CONDITIONAL EMPLOYMENT
0
3. The authority citation for part 315 is revised to read as follows:
Authority: 5 U.S.C. 1302, 3301, and 3302. E.O. 10577, 19 FR
7521, 3 CFR, 1954-1958 Comp., p. 218; E.O. 14284, 90 FR 17729. Secs.
315.601 and 315.609 also issued under 22 U.S.C. 3651 and 3652. Secs.
315.602 and 315.604 also issued under 5 U.S.C. 1104. Sec. 315.603
also issued under 5 U.S.C. 8151. Sec. 315.605 also issued under E.O.
12034, 43 FR 1917, 3 CFR, 1978 Comp., p. 111. Sec. 315.606 also
issued under E.O. 11219, 30 FR 6381, 3 CFR, 1964-1965 Comp., p. 303.
Sec. 315.607 also issued under 22 U.S.C. 2560. Sec. 315.608 also
issued under E.O. 12721, 55 FR 31349, 3 CFR, 1990 Comp., p. 293.
Sec. 315.610 also issued under 5 U.S.C. 3304(c). Sec. 315.611 also
issued under 5 U.S.C. 3304(f). Sec. 315.612 also under E.O. 13473,
73 FR 56703, 3 CFR, 2009 Comp., p. 241. Sec. 315.613 also issued
under 5 U.S.C. 9602. Sec. 315.710 also issued under E.O. 12596, 52
FR 17537, 3 CFR, 1987 Comp., p. 264.
Subpart B--The Career-Conditional Employment System
0
4. Amend Sec. 315.201 by revising paragraph (b)(1)(xv) to read as
follows:
Sec. 315.201 Service requirement for career tenure.
* * * * *
(b) * * *
(1) * * *
(xv) The date of appointment as a Pathways Participant in the
Presidential Management Fellows Program under Sec. 213.3402(c) of this
chapter as it appeared in the January 1, 2025, edition of 5 CFR parts
1-699 (Vol. 1), provided the employee's appointment is converted to a
career or career-conditional appointment under Sec. 315.713(a)(3),
with or without an intervening term appointment, and without a break in
service of one day;
* * * * *
Subpart G--Conversion to Career or Career-Conditional Employment
From Other Types of Employment
Sec. 315.713 [Amended]
0
5. Amend Sec. 315.713 by removing paragraph (a)(3).
PART 362--PATHWAYS PROGRAMS
0
6. The authority citation for part 362 is revised to read as follows:
Authority: E.O. 13562, 75 FR 82585, 3 CFR, 2010 Comp., p. 291,
as amended by E.O. 14217, 90 FR 10577.
Subpart A--General Provisions
0
7. Amend Sec. 362.101 by revising paragraphs (a) and (b) to read as
follows:
Sec. 362.101 Program administration.
(a) The Pathways Programs consist of the following Programs:
(1) The Internship Program; and
(2) The Recent Graduates Program.
(b) An agency may rename the Programs specified in paragraphs
(a)(1) and (2) of this section, provided that the agency-specific name
includes the Pathways Program name identified in paragraph (a) of this
section, e.g., Treasury Internship Program.
* * * * *
0
8. Revise Sec. 362.103 to read as follows:
Sec. 362.103 Authority.
An agency may make an appointment under this part to a position
defined in Sec. 213.3402 of this chapter if the agency first
establishes a Pathways policy in accordance with Sec. 362.104.
0
9. Amend Sec. 362.104 by:
0
a. Revising paragraphs (a)(4), (6), and (7);
0
b. Removing paragraph (a)(8); and
0
c. Redesignating paragraphs (a)(9) through (11) as paragraphs (a)(8)
through (10).
The revisions read as follows:
Sec. 362.104 Agency requirements.
(a) * * *
* * * * *
(4) Prescribe criteria and procedures for agency-approved
extensions for Recent Graduates, not to exceed 120 days. Extension
criteria must be limited to circumstances that would render the
agency's compliance with the regulations impracticable or impossible.
* * * * *
(6) Include a commitment from the agency to:
(i) Provide to OPM any information it requests on the agency's
Pathways Programs;
(ii) Adhere to any caps on the Pathways Programs imposed by the
Director;
(iii) Provide information to OPM about opportunities for
individuals interested in participating in the Pathways Programs, upon
request from OPM;
(iv) Provide a meaningful on-boarding process for each Pathways
Program; and
(v) Provide OPM with the names of the agency's Pathways Programs
Officer.
(7) Identify the agency's Pathways Programs Officer (PPO), who:
(i) Must be in a position at the agency's headquarters level, or at
the headquarters level of a departmental component, in a position at or
higher than grade 12 of the General Schedule (GS) (or the equivalent
under the Federal Wage System (FWS) or another pay and classification
system);
(ii) Is responsible for administering the agency's Pathways
Programs, including coordinating the recruitment and on-boarding
process for Pathways Programs Participants, and coordinating the
agency's Pathways Programs plan with agency stakeholders and other
hiring plans (e.g., merit promotion plans);
(iii) Serves as a liaison with OPM by providing updates on the
agency's implementation of its Pathways Programs, clarifying technical
or programmatic issues, sharing agency best practices, and other
similar duties; and
(iv) Reports to OPM on the agency's implementation of its Pathways
Programs and individuals hired under these Programs, in conjunction
with the agency's Pathways Policy.
* * * * *
[[Page 38607]]
Sec. 362.105 [Amended]
0
10. Amend Sec. 362.105(g) by removing the text ``and PMF''.
Sec. 362.107 [Amended]
0
11. Amend Sec. 362.107 removing paragraph (c)(3).
0
12. Amend Sec. 362.109 by revising paragraph (b) to read as follows:
Sec. 362.109 Reporting requirements.
* * * * *
(b) The percentage of overall hiring expected in the coming three
fiscal years under the Internship and Recent Graduates Programs; and
* * * * *
Sec. 362.110 [Removed and Reserved]
0
13. Remove and reserve Sec. 362.110.
Subpart D--[Removed and Reserved]
0
14. Remove and reserve subpart D.
PART 537--REPAYMENT OF STUDENT LOANS
0
15. The authority citation for part 537 is revised to read as follows:
Authority: 5 U.S.C. 2301, 2302, and 5379(g). E.O. 11478, 3 CFR,
1966-1970 Comp., p. 803, unless otherwise noted; E.O. 13087, 63 FR
30097, 3 CFR, 1998 Comp., p. 191; and E.O. 13152, 65 FR 26115, 3
CFR, 2000 Comp., p. 264.
Sec. 537.102 [Amended]
0
16. Amend Sec. 537.102 in the definition of ``Time-limited
appointment'' by removing paragraph (6) and redesignating paragraphs
(7) and (8) as paragraphs (6) and (7).
[FR Doc. 2025-15238 Filed 8-8-25; 8:45 am]
BILLING CODE 6325-39-P
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