The concept of “Schedule F” in federal employment was a topic of considerable discussion in the run-up to the 2024 presidential election, raising questions about its implications in 2025 and beyond for federal employees and contractors. This blog provides an informational overview of Schedule F, its potential impact on the federal workforce, and considerations for contractors who work closely with federal agencies.

What is Schedule F?

Schedule F refers to a category of federal employment established by then-President Trump with Executive Order 13957, on October 21, 2020. The executive order created Schedule F, defined as a new employment designation for federal workers holding “confidential, policy-determining, policymaking, or policy-advocating” positions. These positions, according to the order, were to be reclassified as exempt from competitive service, meaning they would not be subject to the same merit system principles or hiring and firing protections as other federal jobs.

Views for and against Schedule F

The stated rationale behind Schedule F was to allow the Executive Branch greater flexibility in hiring and managing employees in positions that significantly influence government policy. Removing those roles from traditional civil service protections, proponents of Schedule F argue that it will enhance accountability and efficiency in government operations. Opponents see the purpose of Schedule F differently. William G. Resh, Associate Professor at the USC Price School, was quoted recently, stating “[A]ny time you hear the word ‘efficiency’ bandied about in terms of public policy, the first and second question you should ask is: efficiency for what and efficiency for whom . . .  Somebody will find this more efficient for their own self-interests, but does that mean efficiency at a grand public level?”  https://priceschool.usc.edu/news/trump-elon-musk-schedule-f-federal-workers/

Key Features of Schedule F

• Reclassification of Positions: Positions deemed to have substantial policy-making or advisory responsibilities would be reclassified under Schedule F.
• At-Will Employment: Unlike most federal employees who are protected by merit systems principles, individuals in Schedule F roles would serve at the discretion of their agency leadership, potentially making it much easier to hire or dismiss them.
• Potential Scope: Because the wording of the executive order is ambiguous and subject to differing interpretations, the exact impact of Schedule F on the federal workforce is not yet known. It could end up affecting many thousands of federal employees.

How Could Schedule F Impact Federal Employees?

• Job Security: Employees reclassified into Schedule F would lose many of the civil service protections that provide due process rights in hiring, discipline, and termination. This could create uncertainty for those in reclassified roles.
• Recruitment and Retention: The at-will nature of positions classified as Schedule F could detrimentally affect the ability to attract and retain competent talent in the federal government, particularly for those seeking long-term job stability.
• Merit-Based System: Critics have expressed concerns about the potential erosion of the merit-based civil service system, which prioritizes qualifications and experience over other factors, e.g., political loyalty, in federal hiring decisions.

Implications for Federal Contractors

For federal contractors, Schedule F could have indirect but meaningful consequences:

• Policy Continuity: Changes in the composition of the federal workforce, particularly in key policy-making roles, could lead to shifts in agency priorities and strategies. Contractors working closely with these agencies may need to adapt to changing directives or new expectations.
• Procurement Processes: If agency leadership and staffing undergo significant turnover, procurement priorities and timelines could be affected. Contractors may face project delays or adjustments in the scope of work.
• Workforce Dynamics: Contractors often work alongside federal employees. Any changes Schedule F may cause to worker morale, workforce composition, or operational efficiency within federal teams could have a ripple effect on contractor relationships and project outcomes.

Current Status of Schedule F

While the original executive order establishing Schedule F was rescinded by President Biden in January 2021, discussions about its potential reintroduction in 2025 have continued in some policy circles. Federal employees and contractors alike should stay informed about any developments, as such changes could significantly impact workforce dynamics in the federal sector.

Practical Considerations for Federal Employees and Contractors

For federal employees, understanding the specifics of Schedule F, including whether a position may be reclassified, is critical. Employees should consult with their human resources departments or seek legal advice, as needed.

Federal contractors should closely monitor agency communications and policy announcements. Establishing open lines of communication with contracting officers and agency representatives can help contractors anticipate and proactively respond to potential changes.

Schedule F represents a significant potential shift in federal employment practices, with implications for both federal employees and contractors. While its reintroduction remains uncertain, staying informed and prepared can help individuals and organizations navigate any future changes in this space.

If you have any questions about Schedule F, other federal-sector employment issues, or federal contractor issues, please contact Doug Taylor at (703) 525-4000 or rdougtaylor@beankinney.com.

This article is for informational purposes only and does not contain or convey legal advice. Consult a lawyer. Any views or opinions expressed herein are those of the authors and are not necessarily the views of any client.