Defense Secretary Pete Hegseth speaks to sailors Jan. 5, 2026, aboard the aircraft carrier John F. Kennedy, which is under construction at Newport News, Va. Hegseth last month directed all of his agency's departments to award with bonuses up to $25,000 to the top 15% of their civilian employees. (Kaitlyn Bailey/U.S. Navy)
Defense Department civilians deemed to be their agency’s best performers could reap a substantial cash bonus by the end of the month, depending on funding availability.
Defense Secretary Pete Hegseth last month directed departments across the Pentagon to recognize the top 15% of their civilian employees with bonuses worth 15% to 25% of their basic pay, up to $25,000.
The guidance doesn’t spell out specific criteria for determining how to assess which employees make up that upper echelon.
“I am enormously grateful for the incredible contributions of our entire civilian workforce, and I am proud to work with everyone in the Department, military and civilian, in defending our nation,” Hegseth said in a Dec. 15 memorandum he signed directing the initiative.
The monetary incentive for federal employees was authorized around the same time Hegseth and President Donald Trump announced a one-time “warrior dividend” of $1,776 for roughly 1.4 million active-duty and eligible reserve service members.
Those checks were diverted and paid from funds already appropriated by Congress in the One Big Beautiful Bill Act to supplement troops’ basic housing allowance.
The civilian bonuses are to be drawn from within agency budgets, under existing authorities for each pay system, including general schedule, federal wage system, senior professional and senior executive service, according to the Pentagon memo.
Department heads should coordinate with their financial management and comptroller organizations for budget planning and confirm funding availability for the awards, Hegseth said in the memo.
The bonuses are to be paid by Jan. 30 and are independent of any previous awards given, he said.
Managers are authorized to fund awards beyond the 15%, but any overages must be allocated from internal budgets, Hegseth said.
Some respondents on the r/FedNews subreddit expressed doubt that their agencies had money to support the initiative.
“Sent a note to staff about this to point out that one $25K bonus would be more than our offices annual budget,” said a post from late December. “No extra funding was allocated for this. So it’s kind of a joke.”
Another comment alluded to the loss of tens of thousands of Defense Department employees in the nearly one year since President Donald Trump’s second term began.
“I guess Pete doesn’t know about the drastic budget cuts we’re working under,” the Reddit user said.
Most employees left through voluntary separation, via buyouts or early retirement, Defense One reported.
Civilian DOD workers demonstrated resilience and commitment despite working through a period of uncertainty and adversity during the past year, including the longest government shutdown in U.S. history, Hegseth said in the memo.
He highlighted what he called the department’s “historic successes in defending the homeland and securing peace in the Middle East.”
Hegseth also praised DOD civilian workers’ dedication “to executing the transformational changes necessary to revive the warrior ethos, rebuild our military, and reestablish deterrence.”
