Rule2026-03242
Hiring Authority for Post-Secondary Students
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
February 19, 2026
Effective
March 23, 2026
Issuing agencies
Personnel Management Office
Abstract
The Office of Personnel Management (OPM) is issuing a final rule to amend its career and career-conditional employment regulations. The revision is necessary to implement section 1108 of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019, which requires OPM to issue regulations implementing hiring authorities that allow agencies to hire certain post-secondary students into positions at specified grades in the competitive service. The intended effect of the authority is to provide additional flexibility in hiring eligible and qualified individuals.
Full Text
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<title>Federal Register, Volume 91 Issue 33 (Thursday, February 19, 2026)</title>
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[Federal Register Volume 91, Number 33 (Thursday, February 19, 2026)]
[Rules and Regulations]
[Pages 7803-7810]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03242]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 91, No. 33 / Thursday, February 19, 2026 /
Rules and Regulations
[[Page 7803]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Parts 315 and 316
[Docket ID: OPM-2021-0006]
RIN 3206-AN86
Hiring Authority for Post-Secondary Students
AGENCY: Office of Personnel Management.
ACTION: Final rule.
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SUMMARY: The Office of Personnel Management (OPM) is issuing a final
rule to amend its career and career-conditional employment regulations.
The revision is necessary to implement section 1108 of the John S.
McCain National Defense Authorization Act (NDAA) for Fiscal Year (FY)
2019, which requires OPM to issue regulations implementing hiring
authorities that allow agencies to hire certain post-secondary students
into positions at specified grades in the competitive service. The
intended effect of the authority is to provide additional flexibility
in hiring eligible and qualified individuals.
DATES: This final rule is effective March 23, 2026.
FOR FURTHER INFORMATION CONTACT: Katika Floyd at (202) 606-0960, TDD at
(202) 418-3134, or by email at <a href="/cdn-cgi/l/email-protection#21444c514d4e58614e514c0f464e57"><span class="__cf_email__" data-cfemail="37525a475b584e7758475a19505841">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: On August 18, 2021, the Office of Personnel
Management (OPM) published an interim rule with request for comments in
the Federal Register at 86 FR 46103. The interim rule implemented the
provisions of 5 U.S.C. 3116 for appointing certain post-secondary
students to certain positions in the competitive service.
Summary of Comments
During the 60-day comment period between August 18, 2021, and
October 18, 2021, OPM received 21 written sets of comments on the
regulations. The comments were received from two non-profit
organizations, two labor unions representing federal employees, five
agencies, and 12 members of the public. OPM did not address the
following suggestions from commenters that are outside the scope of
this rulemaking:
<bullet> One comment asked about the impact this hiring authority
would have on the Pathways Programs for students and recent graduates
and attracting higher graded graduate students.
<bullet> One comment suggested that OPM should implement higher
federal salaries.
<bullet> One comment suggested that the rule may be unnecessarily
burdensome to applicants.
Many comments made arguments either for or against the authority in
a more general manner, in addition to lodging specific comments on
particular regulatory provisions. These are addressed below, at the
outset of the discussion.
Responses to Comments
Appointment Lengths
OPM received several comments related to how the agency determined
the time limit associated with appointments made using this authority
and the extension of temporary and term appointments. Two agencies
requested clarifying guidance about how an agency makes the
determination of whether to use a temporary or term appointment.
Specifically, one agency asked if the duration of the appointment was
based on the student's curriculum or the agency's need. The other
agency asked whether an agency could give a term appointment of two
years if the student anticipates completing a degree in less than a
year.
The regulation allows an agency to select the appointment duration
that coincides with the student's curriculum. We have written the
provision in this manner to allow agencies the flexibility to set an
appointment duration that meets the needs of both the student and the
agency. When selecting an appointment duration, the agency should
select a reasonable length that corresponds with the student's expected
degree completion date. For example, an agency anticipating that a
student will graduate in 6 to 8 months of the effective date of the
appointment should make the appointment for up to 1 year to allow
flexibility in case the completion of the degree is delayed by an
unforeseen situation. An initial two-year appointment for this
situation would not be appropriate.
Extensions of Temporary and Term Appointments
We received several comments on the ability to extend temporary or
term appointments beyond the regulatory time limitations of 24 months
for temporary appointments or four years for term appointments. One
labor union stated that agencies should be required to request OPM
approval for extensions beyond four years. Two federal agencies
encouraged OPM to delegate the approval of extensions to agencies. One
of these agencies presented several compelling reasons in support of
delegating extensions of term appointments beyond four years. These
reasons include:
<bullet> Many individuals need to attend school part-time and work
in the evenings (or vice versa) due to financial hardships or family
responsibilities. The four-year term limit only benefits those who have
the means to complete school in the typical timeframe.
<bullet> Limiting appointments to four years may adversely affect
an agency's ability to attract students who need longer than usual to
complete their degree.
<bullet> Students in programs that include combined degree or
accelerated degree programs where students can earn credits for both an
undergraduate and master's degree at the same time would face an
additional challenge to continued employment under the authority.
That same agency specifically recommended removing the four-year
limit for term appointments under this authority because there is
nothing in the statue that limits the appointments to four years.
OPM agrees and has modified the duration for term appointments
under this authority in Sec. 316.901 consistent with 5 CFR 316.301.
This will enable agencies to make term appointments for up to four
years (see Sec. 316.301(a)), for an initial duration beyond 4 years
when authorized by OPM for non-STEM positions (see Sec. 316.301(b)),
or for up to ten years for covered STEM occupations (see Sec.
316.301(c)), as appropriate.
[[Page 7804]]
Veterans' Preference
OPM received three comments related to the application of veterans'
preference. Two comments from individuals encouraged OPM to require
agencies to apply veterans' preference, especially for disabled
veterans. Another commenter asked if veterans' preference would be
required when an agency uses USAJOBS to notify the public about
opportunities that will be filled using the authority. The wording in 5
U.S.C. 3116(b)(1) clearly authorizes an agency to make appointments
without regard to any provision of 5 U.S.C. 3309 through 3319 and 3330,
which outline the requirements to apply veterans' preference. For this
reason, OPM cannot include a requirement to apply veterans' preference
when using this authority.
Public Notification
OPM received four comments requesting that the use of USAJOBS be a
mandatory requirement when using this hiring authority. The commenters
indicated that requiring the use of <a href="http://USAJOBS.gov">USAJOBS.gov</a> would ensure
transparency and that without the requirement the visibility of
opportunities may be limited. Additionally, the commenter indicated
that the absence of a USAJOBS posting may hinder the general public and
interested applicants' ability to track opportunities. While OPM does
not disagree with these claims, we are unable to modify the regulations
to require the use of USAJOBS. The requirement to post competitive
service opportunities on <a href="http://USAJOBS.gov">USAJOBS.gov</a> is based in 5 U.S.C. 3330. The
provisions at 5 U.S.C. 3116(b) specifically state that that an agency
may make appointments without regard to 5 U.S.C. 3330. This means that
agencies may provide the required public notice through USAJOBS or
through other venues as discussed below.
We received a number of comments focused on the content needed for
inclusion in a job announcement. One agency requested information about
how the information for public notice was different from the
requirements for the job announcement. Another agency asked whether
agencies could conduct targeted advertisements with minority serving
institutions. The public notice requirement is for agencies to share
information about opportunities in a manner that provides for
recruitment from all segments of society to produce qualified
applicants and ensure potential applicants have appropriate information
relevant to the positions available. An agency meets the public notice
requirement by using job announcements on USAJOBS or by posting job
announcements on the agency's website. Either of these options may be
supplemented by posting on third-party websites and strategic
recruitment activities to tell the public and other strategic
recruiting sources about opportunities that will be filled using this
authority. When conducting strategic advertising to recruiting sources,
an agency cannot craft an announcement that limits the acceptance of
applications from one institution and excludes other applicants.
Another commenter asked whether the hiring agency has the
flexibility to determine what an announcement will look like. An agency
may use any format it likes when crafting an announcement for its web
page or a third-party website provided that the announcement includes
the following information, and it gives a potential applicant a
realistic preview about the opportunity:
<bullet> position title, series, grade and pay level, minimum
qualifications, and geographic location;
<bullet> whether the position will be filled on a temporary or term
basis (and in the case of a term appointment whether the agency may
extend the appointment up to the 4-year limit);
<bullet> whether an individual in the position will be eligible for
promotion while a student and upon conversion;
<bullet> the potential for conversion to a position in the agency's
permanent workforce;
<bullet> any pertinent flexibilities that may be offered in
conjunction with the position (e.g., reasonable accommodation or other
workplace accommodations in accordance with the President's return to
work directive, or student loan repayments);
<bullet> information on how to apply; and
<bullet> equal employment opportunity and reasonable accommodation
statements. (Agencies may use the recommended statements located on
OPM's USAJOBS website.)
Finally, an agency asked if it is possible to advertise for both
temporary and term opportunities in the same announcement.
The regulations do not prohibit an agency from advertising for both
temporary and term appointments using the same announcement. If an
agency chooses to use this approach, then it must make clear what is
being offered and establish appropriate procedures to ensure that all
parties involved know the basis for whether a temporary or term
appointment will be offered to applicants who are selected for
employment.
An agency asked if it may accept applications outside of a job
announcement or website posting or after an announcement has closed.
OPM's response is no because the public notice provisions in 5 U.S.C.
3116 and Sec. 316.905 require that an agency advertise opportunities
that will be filled using the authority. Accepting applications outside
of an announcement or after an announcement has closed would conflict
with this requirement. Additionally, such a practice would not support
the merit system principle of fair and open competition (5 U.S.C.
2301). Agencies should follow their existing policies for accepting
applications to competitive service announcements.
An agency also asked whether an appointment can be extended if the
announcement did not address the possibility of an extension. The
announcement must provide a realistic preview of the position,
availability of benefits, and the possibility for extension to the
appointment duration in accordance with 5 CFR part 316, subparts B and
C. If the announcement used to fill the position does not include
information on the potential for extension of the appointment, anyone
selected from the announcement would not be eligible for an extension.
Applicant Assessments
An agency asked how applicants hired under the authority should be
assessed. Agencies use the same assessment for hiring students under
this authority as they do when filling the position under other hiring
authorities (and at the same grade level) in accordance with Executive
Order (E.O.) 14170, ``Reforming the Federal Hiring Process and
Restoring Merit to Government Service. See 90 FR 8621 (Jan. 30, 2025).
Consistent with E.O. 14170 and section II.A. of the OPM-Executive
Office of the President (EOP) joint memorandum ``Merit Hiring Plan''
(<a href="https://www.opm.gov/chcoc/transmittals/2025/Merit%20Hiring%20Plan%205-29-2025%20FINAL.pdf">https://www.opm.gov/chcoc/transmittals/2025/Merit%20Hiring%20Plan%205-29-2025%20FINAL.pdf</a>), agencies should use a skills-based assessment
approach when filling positions under this authority. Skills-based
hiring shifts the focus from what applicants say on a resume to what
applicants can do as demonstrated through proven, competency-based
assessments. In accordance with E.O. 13932, ``Modernizing and Reforming
the Assessment and Hiring of Federal Job Candidates'', agencies must
revamp position descriptions so that they
[[Page 7805]]
delineate eligibility and qualification criteria and eliminate any
requirements that are not relevant. 85 FR 39457 (July 1, 2020). Section
3 of E.O. 13932 directs agencies to utilize assessments to determine
the extent to which candidates possess relevant knowledge, skills,
competencies, and abilities. Skills-based hiring is particularly more
important when filling positions at or near the GS-11 grade levels
under this authority.
Eligibility
OPM received three comments recommending that the eligibility
criteria in Sec. 316.902 be expanded to include students pursuing
associates degrees, trade school or certificate programs, and
Department of Labor-approved apprenticeship programs. OPM is unable to
expand the eligibility requirements for this authority because the
provisions in 5 U.S.C. 3116(a)(2) define a student as ``. . . an
individual enrolled or accepted for enrollment in an institution of
higher education who is pursuing a baccalaureate or graduate degree on
at least a part-time basis . . .'' For this reason, we have removed the
references to certificate programs found in Sec. 315.714(b)(1), Sec.
316.901, and Sec. 316.910. OPM recognizes this definition, based on
the authorizing statute, limits the type of students that may be
recruited using the authority. However, there are other programs
available to agencies such as the Pathways Internship Program that may
be used to recruit students pursuing other types of degrees or
certificates.
One agency asked for guidance on how a students' deferral of
enrollment would affect a student's eligibility when applications are
accepted from students accepted for enrollment. Deferred enrollment
generally refers to a situation in which a student who is accepted for
admission for a specific academic period delays or defers enrollment to
a later academic period. Such applicants may be selected and begin
working under this authority if the student can provide documentation
of acceptance, deferral that indicates when enrollment is expected to
begin, and actually begins enrollment at the deferred time. After
enrollment begins, the student must be required to submit additional
documentation to verify that they are currently enrolled. If the
student does not later provide documentation of actual enrollment, they
would be subject to separation as required by Sec. 316.912(b). For
example, at the time of appointment in June 2025, the student provides
documentation of deferred enrollment that will begin in January of the
following year (2026). To continue employment, the agency must require
that the student provide enrollment documentation in January 2026.
Qualifications
A labor union suggested that OPM should explicitly require a nexus
between the position being filled and the student's area of study to
limit the potential for abuses such as favoritism. OPM disagrees that
there needs to be a nexus between the position and the student's area
of study. Students may change majors or career goals while pursuing a
degree. Upon conversion, students must meet all qualification
requirements of the permanent position. A requirement for a nexus would
limit flexibility for the agency and restrict opportunities for
students. For this reason, we are not incorporating a requirement for a
nexus between the student's academic study and the position being
filled.
Classification of Positions
Two commenters requested information on whether the position
descriptions used for Pathways Internship positions may be used for
positions filled under this authority. An agency may use similar
position descriptions for Pathways Intern positions for Post-Secondary
Student positions. However, an independent position description may
need to be established as required by an agency's classification
policy.
Acquisition of Competitive Status
A labor union opposed the provisions in Sec. 316.906 that allow
time spent under this authority to be creditable toward meeting the
competitive service probationary period. OPM disagrees with this
comment. The regulations in 5 CFR 11.4 state that time served in a
federal position may be creditable toward meeting the probationary
period requirement when the service is in the same agency, in the same
line of work and does not include a break in service of more than 30
days.
An agency asked for additional guidance for situations where the
student may attain competitive status upon conversion. Competitive
status is acquired upon completion of a probationary period (which
includes certification by the hiring agency in accordance with Civil
Service Rule XI). Upon conversion to a permanent position the agency
looks at the time served under the post-secondary student authority and
determines if it meets the criteria in 5 CFR 11.4 (same agency, same
line of work, no break in service of more than 30 days). For example, a
student served 8 months under the appointment before conversion at the
agency. The agency determined that the time served prior to conversions
met the criteria in 5 CFR 11.4 and is creditable toward the one-year
probationary period requirement. After conversion, the employee must
serve an additional four months and be certified for continued
employment by the employing agency in accordance with 5 CFR 11.2(d),
11.4, and 11.5, before meeting the probationary period requirement and
gaining competitive status. In a different example the student served
one year under the authority before conversion. The agency determines
that the time served prior to conversion met the criteria in 5 CFR 11.4
and is creditable toward the one- year probationary period requirement.
At the time of conversion, the agency documents that the probationary
period has been met and that certification of the employee's continued
employment advances the public interest in accordance with 5 CFR 11.5,
if applicable, and the student obtains competitive status upon
conversion.
Breaks in Program
OPM received several comments asking for clarification on the
provisions for breaks in program. These comments included questions
about how a break in program is defined; how a break in program is
different from when the employee no longer meets the definition of a
student; and whether a maximum period of leave without pay (LWOP) may
be defined when establishing an agency policy for breaks in program.
A break in program is defined as a period of time when a student is
working for the agency but is unable to go to school or is neither
attending classes nor working for the agency. While breaks in program
are not common, they are permissible in certain circumstances such as,
but not limited to, medical leave, financial hardship, or military
service. An agency may use its discretion to either approve or deny a
request for a break in program, as well as determine the length of the
break. For example, a student who will be unable to work for the first
month of the three-month summer break between school years may be
approved for a break in program. A student who has withdrawn from one
educational institution to transfer to a different one may also be
approved for a break in program. In both instances the student intends
to return to enrollment. However, a student who is withdrawing from
enrollment at an educational institution and has no plans or intention
to return to enrollment within reasonable period of time would no
longer meet the definition of student
[[Page 7806]]
and should not be approved for a break in program.
Agencies have the discretion to determine what is considered a
reasonable period for a break in program depending on the student's
reasons for requesting a break in program. To allow agencies the most
discretion and flexibility, OPM is not prescribing a maximum length of
time for a break in program or the maximum number of breaks in program
that an agency may authorize for a student. Using this discretion, an
agency can create policies that address the length or number of breaks
in program that may be allowed. OPM has modified Sec. 316.908 to
indicate that an agency may create policies that address limitations on
the duration and frequency of breaks in program.
Promotions
One agency recommended OPM clarify whether individuals appointed
under a term appointment may be promoted. We have modified Sec.
316.909 to make clear that only students on term appointments are
eligible for career ladder promotions prior to conversion.
Another commenter asked OPM to modify the regulatory text by
including information addressing promotion potential upon conversion to
a permanent position in the competitive service. OPM agrees and has
modified Sec. 316.909(c) to address this comment. We have also added
information to indicate that students appointed under this authority
may be eligible for non-competitive career ladder promotions upon
conversion provided that the agency has established a career ladder or
promotion potential for the position and the public notification for
the position filled by the student stated the potential for promotion
and specified a career ladder upon conversion.
One commenter requested the final regulation include a provision
allowing promotion potential beyond the GS-11 level. OPM has modified
Sec. 316.904 Classification and Sec. 316.909 Promotion to clarify
that career ladders or promotion potential beyond the GS-11 grade level
may be used with this authority.
Conversion to Permanent Positions
Two commenters questioned why students cannot be converted to
permanent positions in other agencies. The governing statute at 5
U.S.C. 3116(e) states that an agency head may convert a student serving
in an appointment under this authority to a permanent appointment in
the competitive service within the agency. For this reason, the
regulations do not allow the conversion of students to a permanent
appointment in a different agency.
Several commenters inquired about the time frame in which a student
may be converted to a permanent position in the competitive service. An
agency must convert the student to a permanent position as soon as
practical after the completion of a degree and prior to the expiration
of the appointment. The regulations do not prescribe a specific time
frame to allow time for the agency to receive documentation of degree
completion. Agencies should try to process the conversion as soon as
possible after the documentation is received. For example, a student on
an appointment that expires in December completes a degree on June 1
and provides documentation about completion of their degree on July 1.
The agency should convert the student within one or two pay periods of
receiving the documentation. The agency should not wait until December
to convert the student.
Several commenters asked OPM to clarify the time frame for
notifying a student that he or she will not be converted to a permanent
position. A hiring agency should notify a student that he or she will
not be converted as soon as possible once the agency makes its
determination. Prompt notification that conversion is not available
will allow the student time to make alternate career plans. For
example, in January a student reminds their manager that they will be
graduating in May and asks for information about whether a permanent
position will be available. Due to budgetary constraints, the manager
determines in February that the agency will not be able to convert the
student upon completion of the degree. The manager should inform the
student in February that conversion will not be available. The student
would need to be separated within one pay period of when the degree is
completed in May.
One commenter asked whether a student could remain on the rolls
until the expiration date of the appointment when the agency is not
going to convert the student to a permanent position. When an agency
has determined it will not convert a student, that agency must
terminate the student as soon as practicable after the student
completes their degree requirements. Additionally, the agency should
inform a student as soon as possible once that determination has been
made to allow the student time to make alternate career plans.
One commenter suggested OPM should consider allowing a waiver of
the 640-work hour requirement for those students who have grade point
average (GPA) of 3.5 or higher. OPM is not adopting this
recommendation. The governing statute at 5 U.S.C. 3116(e)(2) requires,
as a condition of conversion, that a student must complete not less
than 640 hours of current continuous employment. The statute does not
give OPM the discretion to waive this requirement.
One agency asked how agencies should monitor the conversion
requirements. The employing agency is responsible for keeping track of
when students have met conversion requirements. This process would be
similar to what agencies currently do to track conversion requirements
under the Pathways programs or other hiring programs that have non-
competitive conversion requirements.
Numerical Limitation on Appointments
OPM received several comments on the requirement that appointments
under this authority are limited to 15 percent of the number of
students appointed in the prior year. Some commenters advocated for a
higher limit to meet the needs of the agencies. Other commenters
supported the limit and advocated that OPM's discretion to lower the
limit could be a tool to prevent misuse or abuse of the authority. OPM
agrees that the ability to lower the limit could be a tool to prevent
misuse or abuse of the authority. We have no reason at this time to
lower the current limit allowed by statute. The 15 percent limit was
established in 5 U.S.C. 3116(d)(1). OPM does not have the discretion to
prescribe a higher limitation in the regulations.
Some commenters questioned the type of appointments that may be
counted when determining the limit. These comments indicated that not
being able to count appointments made under the authority would be
unnecessarily restrictive; and that the count should be expanded to any
appointments of students. One individual suggested OPM include students
hired under non-title 5 U.S.C. hiring authorities, as well as the title
5 excepted service Schedule A appointing authority for individuals with
disabilities (5 CFR 213.3102(u)). Another commenter supported the
statutory limitation of 15 percent of prior year's student hires but
exclude appointments under this authority. One non-profit organization
indicated that the calculation should be based on all competitive
appointments hired as indicated in 5 U.S.C. 3115. Some agencies asked
whether an agency could count hires through programs that provide
conversion to the competitive service after completing a trial period
in
[[Page 7807]]
the excepted service pursuant to 5 CFR 11.3, such as the Pathways
Recent Graduate Program, or appointments of Pathways Interns on
temporary appointments. An agency asked if each appointment counts
separately if an intern is given multiple appointments in the same year
or if temporary or indefinite appointments needed to be treated
differently when counting the number of appointments to determine the
numerical limits. Other commentors asked whether an agency could in
future years count appointments made under the post-secondary student
authority. A different commenter recommended that OPM follow the
original language of the statute and use all competitive positions
hired toward the count instead of students. In 2019, Congress amended
the language in 5 U.S.C. 3116(d)(1) from:
``. . . the head of an agency may appoint under this section during
a fiscal year may not exceed the number equal to 15 percent of the
number of students that the agency head appointed during the previous
fiscal year to a position in the competitive service . . .''
to
``. . . the head of an agency may appoint under this section during
a fiscal year may not exceed the number equal to 15 percent of the
number of students that the agency head appointed during the previous
fiscal year . . .''
This change in the statute means the 15 percent limitation is based
on the number of students appointed by the agency during the previous
fiscal year. OPM agrees additional clarification is necessary on which
types of appointments may be counted when determining the numerical
limit. We have modified the provisions at Sec. 316.913 to clarify that
an agency may count appointments made under this authority and other
appointments of students made using an appointing authority that was
specifically created for the appointment of students. This would
include appointments under the Pathways Internship Authority, the Post-
secondary Student authority, agency specific statutory appointing
authorities for hiring students; and other statutory appointing
authorities for hiring students such as the Boren Awards Programs
(under 50 U.S.C. 1902) appointments.
An agency suggested that, when determining the numerical limit, an
agency should be able to include in the count of the prior fiscal
year's appointments conditional job offers that were given but for
which the agency was unable to finalize the appointment before the
conclusion of the fiscal year due to the timing of the background
investigation, medical clearances, or other preemployment process. OPM
is not adopting this suggestion. The authorizing statute clearly
defines that the numerical limit is based on the number of appointments
made and not the number of job offers given.
Reporting Requirement
One federal union indicated support for the use of a reporting
requirement. The authorizing statute required specific reporting
requirements for the first 3 years after enactment of the statute
(August 2018 through August 2020). Because the dates for required
reporting have passed, we have removed the reporting requirement from
the regulatory text. OPM continues to conduct oversight of all hiring
activities including agency use of this hiring authority.
Other Regulatory Changes
OPM moves Sec. 316.915 (Special provisions for Department of
Defense) to replace the current Sec. 316.914 (Reporting requirement).
OPM also updates the language to reflect that Sec. 1116 of Public Law
118-31 extended the DOD direct hire authority for post-secondary
students until Sept 30, 2030, and that subpart I does not apply to DOD
during that time.
Finally, OPM is updating and correcting the Authority citations for
part 316.
Regulatory Analysis
A. Statement of Need
OPM is issuing this rule to implement 5 U.S.C. 3116. This statute
establishes a hiring authority for students into time limited positions
at specified grade levels in the competitive service. The interim rule
allowed agencies to make appointments of post-secondary students
directly into the competitive service positions, without regard to
rating, ranking, veterans' preference, and public notice provisions in
5 U.S.C. 3309-3319 and 3330. Upon successful completion of degree
requirements, the students may be converted into permanent positions in
the competitive service. Commenters requested clarification regarding a
variety of implementation issues related to the interim rule. The final
rule also supports section I.C.1 (Early Career Recruitment) of the
``Merit Hiring Plan.'' This authority, when combined with agencies'
strategic recruitment and Merit Hiring Plan actions pertaining to early
career talent, may help agencies better recruit and fill mission
critical occupations.
B. Impact
OPM expects the impact of this final rule will be a streamlined
hiring flexibility for recruiting early career talent. This rule
finalizes non-competitive procedures for appointment of eligible
students directly into competitive service positions and allows
agencies to convert students who meet certain regulatory requirements
into permanent competitive service positions. This final rule clarifies
regulatory text from the interim rule based on comments received and
provides additional flexibility to agencies with respect to permissible
appointment lengths. The purpose of this rule is to provide agencies
with information necessary to create policies and procedures for using
the authority to hire post-secondary students as a part of an agency's
overall strategy to implement strategic workforce, and recruitment
plans. It may also help agencies address hiring and recruiting gaps for
filling early career talent positions.
C. Regulatory Alternatives
OPM's implementing regulations are required by statute and cannot
be avoided. The statue prescribes eligibility requirements; types of
positions that can be filled using the authority; public notice
requirements; a numerical limit for the number of appointments made;
and reporting requirements.
The strict wording of the eligibility requirements in the statute
regulations does not allow the regulations to offer any alternatives.
For this reason, the eligibility requirements in the rule match those
specifically prescribed by the statute.
For the public notice requirement created in the statute, OPM has
given agencies the flexibility to use a variety of ways to tell the
public about opportunities. While the regulations specify the
information required to be included in the public notice, they also
allow the agency the discretion to determine the format of the notice
when the agency is not using OPM's USAJOBS platform.
The numerical limitation on the use of the authority is prescribed
in statute. The precise wording does not allow OPM to prescribe a limit
higher than 15 percent or a waiver of the limit. Our approach in
writing the implementing regulations for this issue is to provide
instructions and clarifying information on how an agency must calculate
the statutorily prescribed limit.
D. Costs
This final rule will affect the operations of over 80 Federal
agencies--
[[Page 7808]]
ranging from cabinet-level departments to small independent agencies.
We estimate that this rule will require individuals employed by these
agencies to modify policies and procedures to implement the rule and
perform outreach and recruitment activities when using the authority.
For the purpose of this cost analysis, OPM assumed an average salary
rate of Federal employees performing this work will be the rate in 2026
for GS-14, step 5, from the Washington, DC, locality pay table
($163,104 annual locality rate and $78.15 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 $156.30 per hour.
In order to comply with the regulatory changes in this final rule,
affected agencies may need to review and update their policies and
procedures. We estimate that, in the first year following publication
of this final rule, this will require an average of 100 hours of work
by employees with an average hourly cost of $156.30. This would result
in estimated costs in the first year of implementation of about $15,630
per agency, and about $1,250,400 in total Governmentwide. We do not
believe this rule will substantially increase the ongoing
administrative costs to agencies (including the administrative costs of
administering the program and hiring and training new staff).
E. Benefits
This authority will allow agencies to use strategic recruiting to
hire students in baccalaureate or graduate degree programs. When using
the authority, agencies will have additional flexibility in how college
students are hired. Federal agencies will determine recruitment sources
and processes for the solicitation of applications and will be held
responsible for merit-based selections and in accordance with the Merit
Hiring Plan guidance. This authority--when combined with agencies'
strategic recruitment plans--may help agencies better recruit to fill
mission critical occupations.
F. Severability
If any of the provisions of this final rule is held to be invalid
or unenforceable by its terms, or as applied to any person or
circumstance, we believe that the other sections should be severable
and would not be impacted. Similarly, many of the operational
requirements have no bearing on other provisions and are severable. For
example, a holding that a hiring provision is invalid should not impact
provisions related to conversion. In enforcing the provisions of this
rule, OPM will comply with all applicable legal requirements. OPM did
not receive any comments on severability in the proposed rule.
Regulatory Compliance
A. Regulatory Review
OPM has examined the impact of this rule as required by E.O. 12866
and 13563, which direct agencies to assess all costs and benefits of
available regulatory alternatives and, if regulation is 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 rule is not a ``significant regulatory
action'' under section 3(f) of E.O. 12866. This rule is considered a
deregulatory action under E.O. 14192.
B. Regulatory Flexibility Act
The Director of the Office of Personnel Management certifies that
this rule will not have a significant economic impact on a substantial
number of small entities.
C. 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 E.O. 13132,
it is determined that this rule does not have sufficient federalism
implications to warrant preparation of a Federalism Assessment.
D. Civil Justice Reform
This regulation meets the applicable standard set forth in section
3(a) and (b)(2) of E.O. 12988.
E. 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.
F. Congressional Review Act
OMB's Office of Information and Regulatory Affairs has determined
this rule does not satisfy the criteria listed in 5 U.S.C. 804(2).
G. Paperwork Reduction Act
Notwithstanding any other provision of law, no person is required
to respond to, nor shall any person be subject to a penalty for failure
to comply with, a collection of information subject to the requirements
of the Paperwork Reduction Act of 1995, as amended (44 U.S.C. 3501 et
seq.) (PRA), unless that collection of information displays a currently
valid Office of Management and Budget (OMB) Control Number. This rule
involves the following OMB-approved collections of information subject
to the PRA: USAJOBS 3.0 (OMB Control Number 3206-0219).
OPM believes any additional burden associated with this final rule
falls within the existing estimates currently associated with this
control number. OPM does not anticipate that the implementation of this
final rule will increase the cost burden to members of the public.
Additional information regarding this collection of information--
including all background materials--can be found at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a> by using the search function to enter
either the title of the collection or the OMB Control Number.
List of Subjects
5 CFR Part 315
Government employees.
5 CFR Part 316
Employment, Government employees.
The Director of OPM, Scott Kupor, reviewed and approved this
document and has authorized the undersigned to electronically sign and
submit this document to the Office of the Federal Register for
publication.
U.S. Office of Personnel Management.
Jerson Matias,
Federal Register Liaison.
Accordingly, Office of Personnel Management amends 5 CFR parts 315
and 316 as follows:
[[Page 7809]]
PART 315--CAREER AND CAREER-CONDITIONAL EMPLOYMENT
0
1. 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 22 U.S.C. 2051, 42 U.S.C. 2991.
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 5 U.S.C. 3330d.
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 I also issued under 5 U.S.C. 3321, E.O. 12107, 44 FR
1055, 3 CFR, 1978 Comp., p. 264.
Subpart B--The Career-Conditional Employment System
0
2. Amend Sec. 315.201 by:
0
a. Removing the word ``and'' at the end of paragraph (b)(1)(xvi);
0
b. Removing the period at the end of paragraph (b)(1)(xvii) and adding
``; and'' in its place; and
0
c. Adding paragraph (b)(1)(xviii).
The addition reads as follows:
Sec. 315.201 Service requirement for career tenure.
* * * * *
(b) * * *
(1) * * *
(xviii) The date of a time-limited post-secondary student
appointment under subpart F of this part provided the appointment is
converted to career or career-conditional appointment under 5 CFR part
316, subpart I.
* * * * *
Subpart G--Conversion to Career or Career-Conditional Employment
From Other Types of Employment
0
3. Revise Sec. 315.714 to read as follows:
Sec. 315.714 Conversion based on service in a post-secondary student
appointment under part 316, subpart I, of this chapter.
(a) Agency authority. An agency may convert to a career or career-
conditional appointment from a time-limited appointment pursuant to 5
CFR part 316, subpart I, without further competition.
(b) Eligibility. To be eligible for conversion the post-secondary
student must:
(1) Have completed the course of study leading to the baccalaureate
or graduate degree;
(2) Have completed not less than 640 hours of current continuous
employment in an appointment under Sec. 316.902 of this chapter;
(3) Meet the OPM qualification standards for the position to which
the student will be converted; and
(4) Meet the time-in-grade requirements in accordance with 5 CFR
part 300, subpart F.
(c) Tenure on conversion. An employee whose employment converts to
career or career-conditional employment under this section becomes:
(1) A career-conditional employee except as provided in paragraph
(c)(2) of this section; or
(2) A career employee when he or she has completed the service
requirement for career tenure or is excepted from it by Sec.
315.201(c).
(d) Acquisition of competitive status. A post-secondary student
converted from time limited employment under this section acquires
competitive status upon completion of probation in accordance with
Sec. Sec. 11.2, 11.4, and 11.5 of this chapter.
PART 316--TEMPORARY AND TERM EMPLOYMENT
0
4. Revise the authority citation for part 316 to read as follows:
Authority: 5 U.S.C. 3301, 3302, 3316. E.O. 10577, 19 FR 7521, 3
CFR, 1954-1958 Comp., p. 218; E.O. 14284, 90 FR 17729. 5 CFR 2.2(c).
Subpart I--Hiring Authority for Post-Secondary Students
0
5. Revise Sec. 316.901 to read as follows:
Sec. 316.901 Appointment authority.
In accordance with the provisions of this section, an agency may
make a time-limited appointment of an eligible and qualified post-
secondary student, to any position in the competitive service, at the
General Schedule (GS) 11 level or below (or equivalent), without regard
to the provisions of 5 U.S.C. 3309 through 3319 and 3330. An agency may
appoint an individual for an initial period not to exceed 1 year in
accordance with Sec. 316.401(c)(1), for an initial period expected to
last more than 1 year but less than 4 years in accordance with Sec.
316.301(a) and (b), or for a period of more than 1 year but not more
than 10 years in accordance with Sec. 316.301(c) to coincide with the
individual's academic curriculum. An agency may extend or seek
extension from OPM, as appropriate in accordance with this part, of an
initial appointment for a period that will allow the post-secondary
student to complete his or her academic requirements leading to the
awarding of a degree, as appropriate.
0
6. Revise Sec. 316.903 to read as follows:
Sec. 316.903 Qualifications.
Agencies must evaluate eligible post-secondary students using the
government-wide OPM prescribed qualification standard or an OPM-
approved agency-specific qualification standard for the position being
filled.
0
7. Amend Sec. 316.904 by adding a sentence at the end of the text to
read as follows:
Sec. 316.904 Classification.
* * * Agencies may also attach career ladders or promotion
potential beyond the General Schedule (GS) 11 grade level (or
equivalent) with positions filled under this authority.
0
8. Revise Sec. 316.905 to read as follows:
Sec. 316.905 Public notification.
An agency must adhere to merit system principles and thus must
provide public notification in a manner that recruits qualified
individuals from appropriate sources in an endeavor to draw from all
segments of society, before filling a position under the authority in
this subpart. An agency may, but is not required to, use USAJOBS for
this purpose. If the agency does not use USAJOBS to meet the
requirements in this section, it must, at a minimum, publicly display
information about the position to be filled on its public facing home
page. An agency may, alternatively, provide an actual job announcement
on its public facing home page or provide a link to the job
announcement on its public facing home page. The agency should consider
whether additional recruitment and advertising activities are necessary
or appropriate to further merit system principles. A non-USAJOBS job
announcement or information displayed on an agency's public facing
homepage, must include, at a minimum, the following information:
(a) The position title, series, grade level;
(b) The geographic location where the position will be filled;
(c) The starting salary of the position;
(d) The minimum qualifications of the position;
[[Page 7810]]
(e) Whether individual in the position will be eligible for
promotion both while a student and upon conversion;
(f) The time-limit applicable to the position and, in the case of a
term appointment, the vacancy announcement must state that the agency
has the option of extending the term appointment up to the applicable
limit;
(g) The potential for conversion to the agency's permanent
workforce;
(h) Any other relevant information about the position such as
telework opportunities, recruitment incentives, etc.;
(i) Specific information instructing applicants on how to apply for
the position; and
(j) Equal employment opportunity and reasonable accommodation
statements. (Agencies may use the recommended statements located on
OPM's USAJOBS website.)
0
9. Revise Sec. 316.908 to read as follows:
Sec. 316.908 Breaks in program.
A break in program is defined as a period of time when a student is
working for the agency but is unable to go to school or is neither
attending classes nor working for the agency. An agency may use its
discretion to approve or deny a request for a break in program. The
agency may also establish policies that address the duration, number of
breaks in service, and criteria used to approve a break in program.
0
10. Revise Sec. 316.909 to read as follows:
Sec. 316.909 Promotion.
(a) Students on term appointments. An agency may promote a student
who was appointed for an initial period expected to last more than 1
year but less than 4 years provided the student meets the qualification
requirements for the higher graded position, time in grade requirements
in 5 CFR part 300, subpart F, and the public notification for the
position filled by the student stated the potential for promotion and
specified a career ladder.
(b) Students on temporary appointments. An agency may not promote a
student who was appointed for an initial period expected to last up to
one year.
(c) Promotions at the time of conversion. Students (on temporary or
term appointments) may be eligible for non-competitive promotions upon
conversion if:
(1) the agency has established a career ladder or promotion
potential for the position;
(2) the public notification for the position filled by the student
stated the potential for promotion and specified a career ladder; and
(3) the student has met the time-in-grade requirements in
accordance with 5 CFR part 300, subpart F.
0
11. Amend Sec. 316.910 by revising paragraph (a) to read as follows:
Sec. 316.910 Conversion.
* * * * *
(a) Has completed the course of study leading to the baccalaureate
or graduate degree;
* * * * *
0
12. Revise Sec. 316.913 to read as follows:
Sec. 316.913 Numerical limitation on the number of appointments.
(a) Except as provided in paragraph (b) of this section, the total
number of students that an agency may appoint under this section during
a fiscal year may not exceed the number equal to 15 percent of the
number of students the agency head appointed during the previous fiscal
year to a position at the GS-11 level or below (or equivalent). An
appointing agency may count Pathways Internship Program appointments
under Sec. 213.3402(a) of this chapter; appointments made under this
authority; and other appointments of students made using an appointing
authority that was specifically created for the appointment of
students. An agency may not count appointments made using direct hire
authorities, other non-competitive authorities, other excepted service
authorities, or selections under merit promotion authorities when
establishing the limit for a given fiscal year. In calculating this
limitation, agencies must round up or down to the nearest whole number,
if necessary, to eliminate a decimal place. Values ending in ``.5'' or
more may be rounded up to the nearest whole number in determining an
agency's cap limitation. Values ending in less than ``.5'' should be
rounded down to the nearest whole number in determining an agency's cap
limitation.
(b) OPM may establish a lower limitation on the number of students
that may be appointed by an agency under paragraph (a) of this section
during a fiscal year based on any factors OPM considers appropriate.
OPM shall notify agencies via the OPM website and other venues (such as
the Chief Human Capital Officers Council) of any changes to the
numerical limitation applicable governmentwide. Changes to the
numerical limit for an individual agency will be communicated directly
to the agency.
Sec. 316.914 [Removed]
0
13. Remove Sec. 316.914.
0
14. Redesignate Sec. 316.915 as Sec. 316.914 and revise the newly
redesignated Sec. 316.914 to read as follows:
Sec. 316.914 Special provisions for Department of Defense.
This subpart does not apply to the Department of Defense during the
period that section 1106 of Public Law 114-328, as amended by section
1116 of Public Law 118-31, (see 10 U.S.C. note prec. 1580) or that any
applicable successor statute, is effective.
[FR Doc. 2026-03242 Filed 2-18-26; 8:45 am]
BILLING CODE 6325-39-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.