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President Trump approved critical position pay authority for up to 400 federal positions supporting national security investment work. The action allows the Office of Personnel Management to offer salaries above standard caps to retain specialized talent in key investment roles.
pymnts.comWASHINGTON, May 29, 2026 — President Trump signed a memorandum approving critical position pay authority for as many as 400 positions in the national security investment workforce.
The memorandum, issued under 5 U.S.C. 5377(d)(2) and 5 C.F.R. 535.103(a)(3) and 535.104(c), directs the Office of Personnel Management to implement the higher pay levels. It targets positions that support investment activities tied to national security priorities.
The approval changes the prior compensation structure for these roles. Federal pay for the affected positions had been limited by standard executive schedule and senior executive service caps. The new authority permits salaries exceeding those statutory ceilings when necessary to recruit or retain employees with exceptional qualifications.
The change takes effect immediately upon the memorandum's issuance on May 29, 2026.
Downstream, agencies overseeing national security-related investment portfolios must identify which of the 400 positions qualify for the elevated pay and submit requests through OPM processes. This triggers internal agency reviews of current staffing levels and compensation gaps within the next several pay cycles.
The higher pay authority also requires OPM to track usage and report back on retention outcomes for the covered workforce. Congress retains oversight through annual appropriations and can adjust funding to cover the increased personnel costs in future budget cycles.
This is the latest use of 5 U.S.C. 5377 critical pay authority during the Trump administration to address specialized federal workforce needs. Similar approvals have previously targeted scientific, technical and cybersecurity positions across defense and intelligence agencies.
The memorandum applies only to positions directly supporting national security investment functions and does not extend to the broader federal civilian workforce.
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