Hegseth Approves $25,000 Bonuses for Outstanding Civilian Employees

Defense Secretary Pete Hegseth has taken significant steps to reward exceptional civilian employees within the Department of Defense. A memo sent on December 15, 2025, details a new incentive program that authorizes cash bonuses for the top-performing 15% of civilian staff.

Details of the Cash Bonus Program

The bonuses are aimed at recognizing outstanding contributions from Department of Defense civilian employees. According to the memo, department heads can award bonuses ranging from 15% to 25% of the employee’s basic pay, with a maximum cap of $25,000.

• Target Group: The top 15% of civilian performers.
• Bonus Range: 15% to 25% of basic pay.
• Maximum Bonus: $25,000.

Managerial Flexibility

Hegseth has encouraged department leaders to use their internal budgets to extend awards to more than just 15% of their workforce. He emphasized the critical role of civilian employees in supporting the U.S. military’s global mission.

In his memo, Hegseth highlighted the resilience shown by civilian employees during challenging times, particularly referring to the longest government shutdown in U.S. history, which had severely impacted the workforce.

Implementation Timeline and Further Guidance

Department heads are instructed to work with their financial management teams to ensure adequate funding for the bonuses. They must issue these awards by January 30, 2026.

This new incentive program joins a broader initiative led by Undersecretary of Defense for Personnel and Readiness, Anthony Tata. Tata’s guidance aims to enhance recruitment and retention by expanding the use of civilian workforce incentives.

Additional Incentives and Changes in Workforce

The memo encourages the use of existing incentives like:

• Cash awards up to 20% of basic pay.
• Time-off awards totaling up to 80 hours per year.

These efforts are part of Hegseth’s larger strategy to reshape the Department of Defense’s civilian workforce. Notably, the department has experienced a loss of more than 60,000 employees since the Trump administration began, reaching a reduction goal of 5% to 8%.

Currently, a civilian hiring freeze remains in effect, which has been extended indefinitely to further decrease the size of the federal workforce.

In light of these changes, bonuses are also part of a broader push to reward both military and civilian personnel contributing to national defense.