Rebalance for an Effective Defense Uniformed and Civilian Employees Act or the REDUCE Act
This bill limits full-time positions in the Department of Defense (DOD), in each of FY2026-FY2030, to not more than 85% of the number of such positions at the end of FY2021. Not more than 1,000 of the positions may be career appointees within the Senior Executive Service.
DOD may offer voluntary separation incentive payments and voluntary early retirement payments to achieve the reductions but must use involuntary measures, beginning at the start of FY2021, to achieve required reductions in personnel levels if voluntary measures are inadequate.
To provide for a limitation on the number of civilian employees at the 
             Department of Defense, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rebalance for an Effective Defense 
Uniformed and Civilian Employees Act'' or the ``REDUCE Act''.

SEC. 2. LIMITATION ON NUMBER OF EMPLOYEES IN THE DEPARTMENT OF DEFENSE.

    (a) Limitation on FTEs.--
            (1) In general.--Notwithstanding the requirements of 
        section 129 of title 10, United States Code, and consistent 
        with the requirements of subsection (d), in each of fiscal 
        years 2026 through 2030, the number of full-time equivalent 
        civilian positions in the Department of Defense may not be 
        greater than 85 percent of the number of such positions at the 
        Department as of September 30, 2021, as determined by the 
        Director of the Office of Personnel Management.
            (2) SES.--Of the positions permitted pursuant to paragraph 
        (1) for fiscal years 2026 through 2030 at the Department of 
        Defense, not more than 1,000 may be career appointee (as 
        defined in section 3132(a)(4) of title 5, United States Code) 
        positions within the Senior Executive Service.
    (b) Voluntary Reductions.--To achieve the reductions in personnel 
required by subsection (a), the Secretary of Defense may exercise the 
authority provided for--
            (1) voluntary separation incentive payments (subchapter II 
        of chapter 35 of title 5, United States Code); and
            (2) voluntary early retirement payments (sections 
        8336(d)(2)(D) and 8414(b)(1)(B) of such title).
    (c) Involuntary Reductions.--
            (1) In general.--Beginning on October 1, 2020, if voluntary 
        reductions are inadequate to achieve the limitations provided 
        in subsection (a), the Secretary of Defense shall separate 
        employees using involuntary measures, including reductions in 
        force.
            (2) RIF application.--Notwithstanding any other provision 
        of law, rule, or regulation, when applying retention factors 
        with respect to any employee during any reduction in force 
        under paragraph (1), the Secretary of Defense shall assign 
        greater weight to the performance factor over the other factors 
        if such employee has a summary rating level of ``fully 
        successful'' or better.
    (d) Adjustment of Limit.--
            (1) Determination.--As soon as practicable after the start 
        of each of fiscal years 2026 through 2030, the Secretary of 
        Defense shall determine the difference (if any), expressed as a 
        percentage, between the permanent active duty end strength 
        minimum levels in effect under section 691(b) of title 10, 
        United States Code, for the current fiscal year and the 
        preceding fiscal year.
            (2) Adjustment.--On the date that the determination is made 
        under paragraph (1), the Secretary shall adjust the limitations 
        provided under subsection (a) with respect to the number of 
        total full-time equivalent positions and Senior Executive 
        Service positions by a percentage equal to the percentage 
        determined under paragraph (1).
            (3) Achievement of adjustment.--After any adjustment under 
        paragraph (2), in order to achieve the adjusted limitation for 
        the applicable fiscal year, the Secretary (as the case may 
        be)--
                    (A) may hire individuals to occupy full-time 
                equivalent positions; or
                    (B) shall separate employees occupying such 
                positions using the involuntary procedures provided 
                under subsection (c).
            (4) Limitation on adjustment.--No adjustment may be made 
        under this subsection that would result in the number of full-
        time equivalent positions and Senior Executive Service 
        positions to be greater than the limitations on the number of 
        such positions provided under subsection (a).
    (e) Reports.--
            (1) Secretary of defense.--The Secretary of Defense--
                    (A) shall include a report in the Secretary's 
                annual budget request for each of fiscal years 2021 
                through 2029 on the progress and impact of the 
                requirements of this Act; and
                    (B) may, in addition to the report required under 
                subparagraph (A), report to Congress on the impact of 
                such requirements at any time throughout any of such 
                fiscal years.
            (2) GAO.--Not later than 3 years after the date of the 
        enactment of this Act, the Administrator of General Services 
        shall submit to Congress a report examining the progress and 
        impact of the requirements of this Act.
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REDUCE Act
To provide for a limitation on the number of civilian employees at the Department of Defense, and for other purposes.
REDUCE Act
Rebalance for an Effective Defense Uniformed and Civilian Employees Act
Rep. Calvert, Ken