BLUF
Army Directive 2026-18 modernizes Army civilian workforce management by revising policies for unacceptable performance, adverse actions, employee separation incentives, awards, recruitment and retention incentives, and leave. It directs commanders to ensure supervisors expeditiously separate civilian employees with unacceptable performance using the most efficient means available while recruiting, retaining, and rewarding employees whose service most strengthens the Department and supports Soldiers. The directive also establishes specific timelines for proposed removals and decisions, authorizes additional separation tools when implementing guidance is available, expands flexibility for civilian awards and incentives, and modifies certain leave policies.
SECRETARY OF THE ARMY
WASHINGTON
07 JUL 2026
MEMORANDUM FOR SEE DISTRIBUTION
SUBJECT: Army Directive 2026-18 (Modern Civilian Workforce Management)
1. References.
See references enclosed.
2. Purpose.
This directive modernizes Army civilian human resource management policies to comply with Department of War (DoW) requirements at references 1d, 1f, and 1g. The provisions of this directive revise Army regulations (ARs) for Civilian performance management, adverse actions, awards, incentives, and ongoing Army Transformation Initiative (ATI) modernization efforts.
3. Applicability.
The provisions of this directive apply to Department of the Army (DA) Civilians working for the Regular Army, U.S. Army Reserve, and Army National Guard/Army National Guard of the United States.
4. Policy.
Commanders and heads of Army commands (ACOMs), Army service component commands (ASCCs), and direct reporting units (DRUs); and the Administrative Assistant to the Secretary of the Army (AASA) for the Headquarters, Department of the Army (HQDA); (hereafter referred to in this directive as “Commanders”) will ensure implementation of the following provisions in their organizations consistent with the referenced authorities and applicable implementing guidance. Commanders are directed to ensure supervisors expeditiously separate civilian employees with unacceptable performance from their positions using the most efficient means available, consistent with the requirements of the employee’s personnel management system, and to recruit, retain, and reward those employees whose service most strengthens the Department and supports our Soldiers. Supervisors must ensure compliance with applicable labor relations obligations when implementing the provisions of this directive.
a. Adverse Actions Based on Unacceptable Performance.
Commanders are directed to ensure policies, procedures, and requirements promote the most effective and efficient means to address poor performance.
(1) Unsatisfactory Performance of Nonappropriated Fund (NAF) Employees.
The provisions of AR 215–3, Chapter 6, section II, are hereby rescinded. The Deputy Chief of Staff (DCS), G-1 (or designee) will prescribe necessary procedures to efficiently and effectively address unsatisfactory performance of NAF employees with the following requirements.
(a) Supervisors should propose removal for employees with unsatisfactory performance. The servicing personnel office, in coordination with the servicing legal office, has 10 calendar days to respond and provide advice on the sufficiency of the supporting documentation and further assistance, as needed.
(b) Deciding officials will render an unbiased and independent decision on proposed removals, normally within 30 calendar days from the date of the proposal. Deciding officials must document, in writing, the reason(s) for decisions rendered after 30 calendar days or that effect a lesser penalty.
(2) Notice of Proposed Removals for Unacceptable Performance.
Disciplinary procedures identified in AR 690–752, as modified by this directive, are the primary means for addressing unacceptable performance. Supervisors will consult with their servicing human resources office, such as the U.S. Army Civilian Human Resources Agency (CHRA), within 7 calendar days from the date the performance is determined unacceptable to initiate an appropriate notice of proposed removal. The servicing personnel office, in coordination with the supporting legal office, will respond to a supervisor’s request for guidance within 10 calendar days, providing advice on the sufficiency of the supporting documentation and other assistance as needed.
(a) Response Opportunity to Proposed Notice of Removal for Unacceptable Performance. Employees will have 7 calendar days to respond orally and/or in writing to a proposed notice of removal, or as consistent with collective bargaining agreements (CBAs). This directive rescinds all provisions in AR 215–3 and AR 690–752 that allow for greater flexibility when setting the employee response timeframe. Commanders should align CBAs consistent with this policy at the earliest opportunity.
(b) Deciding Official for Adverse Actions Related to Unacceptable Performance. Deciding officials will be no more senior than two levels above the supervisor in the reporting chain or a designated individual in the Command outside of the rating chain. Deciding officials will review the notice of proposed removal and the employee’s response (if any), then render an unbiased, independent written decision within 30 calendar days of the written notice of proposed removal. Deciding officials must document, in writing, the reason(s) for decisions rendered later than 30 calendar days from the date of the proposal or decisions that impose lesser penalties.
(c) Deciding officials will notify Commanders when a final decision is rendered after the 30-day response deadline. Commanders will review the circumstances and should take appropriate corrective action to address procedural deficiencies in effecting timely adverse actions.
(d) In accordance with reference 1e, when the decision is not rendered within 30 days, or the decision on a proposed removal is not upheld, the servicing human resources office (such as CHRA) will submit the redacted case file to the Under Secretary of War for Personnel and Readiness (USW(P&R)) with a copy furnished to the Army DCS, G-1 (or designee) within 7 calendar days of that final decision. The DCS, G-1 will provide the Deputy Assistant Secretary of the Army for Civilian Personnel (DASA-CP) monthly summary reports of all case files submitted pursuant to this provision. The DCS, G-1 (or designee) will promulgate implementing guidance with the procedures for submitting case files to the USW(P&R) and the DCS, G-1.
b.
Chapter 3 of AR 690–752 and all requirements to consider the “Table of Offenses and Penalties” are hereby rescinded. Deciding officials will independently determine appropriate penalties, up to and including removal, after considering the misconduct and the relevant Douglas Factors, as defined in AR 690–752, Chapter 2. Suspensions should not be substituted for removals to the extent removal is warranted.
c. Additional Separation Tools.
Consistent with reference 1f, after issuing a notice of proposed removal/termination for unacceptable performance, Commanders may consider using incentives to facilitate efficient and expedited employee voluntary resignations or retirements. Approved separation agreements will include statements that the incentives are voluntary, and the separating employee must waive all rights to challenge the proposed removal, incentive, or other related activity in any forum. Commander use of these flexibilities should be in the best interests of DoW and DA, facilitate efficient and effective separations for unacceptable performance, and be consistent with good decision-making principles. The DCS, G-1 (or designee) will promulgate implementing guidance with the procedures for using these additional separation tools. Commanders may use these flexibilities after receiving the implementing guidance from DoW and the DCS, G-1.
(1) Voluntary Separation Incentive Payment (VSIP).
Minimum employee eligibility requirements must still be met, and positions must be abolished or restructured pursuant to DoD Instruction 1400.25, Volume 1702 (DoD Civilian Personnel Management System: Voluntary Separation Programs). VSIPs used for this purpose will count against a Commander’s total distributed VSIP allocations for the fiscal year in which the employee separates. Commanders will track and report to the CHRA Civilian Personnel Directorate all VSIPs utilized for this purpose.
(2) Voluntary Early Retirement Authority (VERA).
AR 690–300, paragraph 21–3, is hereby amended to allow in the approval process the consideration of “personal factors” to the extent that they facilitate efficient employee separations when a notice of proposed removal has been issued to an employee for unacceptable performance. Employees must meet minimum eligibility requirements in DoD Instruction 1400.25, Volume 1702. Commanders will track and report to the CHRA Civilian Personnel Directorate all VERA utilized for this purpose.
(3) Individualized Deferred Resignation Program (DRP).
Commanders may provide up to 12 weeks of administrative leave under an individual DRP. As a condition of approval, employees must also sign a DRP Separation Agreement when using this incentive. Commanders must track and report use of the DRP for this purpose.
d. Awards and Incentives.
Commanders must fully utilize the available awards and incentives to strategically recruit, retain, reward, and recognize employees who make the greatest contributions to the DA mission. Employee development and training opportunities may also be used for these purposes. Commanders are also encouraged to identify additional incentives to recruit and retain top civilian employees.
(1) Time-Off Awards.
AR 672–20, paragraphs 4–5b(1) and 4–5b(2), regarding approval of time-off awards, are hereby rescinded. Commanders may delegate authority down to the first-level supervisor to authorize time-off awards in any amount, consistent with DoD Instruction 1400.25, Volume 451, and AR 672–20.
(2) Performance Awards.
Commanders will ensure high performers receive appropriate and timely recognition, including incentivizing and rewarding outstanding performance. Generally, supervisors should consider at least quarterly recognition of outstanding performance. Supervisors who are deficient in performance management responsibilities, including timeliness, are ineligible to receive performance awards.
(3) Quality Step Increases (QSIs).
AR 672–20, paragraph 6–2, is hereby rescinded. Outstanding employees may be granted QSIs consistent with the eligibility requirements in DoD Instruction 1400.25, Volume 451. Commanders are encouraged to consider QSIs, independently or in conjunction with other incentives/awards, when recognizing outstanding performance.
(4) Superior Public Service Medal.
AR 672–20, paragraph 9–3, of is hereby amended to read:
The Superior Public Service Medal consists of a silver medal, lapel button, and citation certificate, DA Form 7402 (Superior Public Service Medal). The commanders of ACOMs, ASCCs, DRUs; members of the Senior Executive Service serving as director of a DRU; and the AASA for HQDA may award this decoration to individuals not employed by the Army (for example, employees from other DoD Components or Federal agencies, and private citizens not employed by the Army during the period for which an award is recommended). Presidential appointees and senior Army officials in non-career positions are eligible for this award. Contractors are not eligible for this award. This award is appropriate for spouses of military members provided they meet the criteria and are not a family member of the approving official. Awards for family members of approving officials must be granted at least one level above the approving official, unless the approving official is the Secretary of the Army. Nominated individuals must have provided exceptional public service to an Army command or the Army that makes a significant contribution to the accomplishment of the command’s and/or the Army’s missions or is of such significance to warrant recognition by a senior Army commander/head or the Secretary of the Army.
(5)
If an award or incentive is not addressed in this directive, but the Commander has maintained delegated authority at a higher level or been more restrictive than required by DoW or Army policy, leaders should review and further delegate or modify their policy to remove such limitations. Commander awards programs must maintain accountability, transparency, and auditability pursuant to AR 672–20 and reference 1g.
e. Absence and Leave.
(1)
AR 690–630, paragraph 5–2c(6), is hereby modified to remove requirements for 90-day incremental approvals of leave without pay (LWOP) for employees to accompany military or Federal civilian employee spouses to new duty stations. LWOP for this purpose may be initially authorized in any amount up to 12 months and may be extended up to a cumulative maximum of 18 months per instance.
(2)
The CHRA Director will develop and implement a centralized electronic system to automate the Voluntary Leave Transfer Program (VLTP). Donors and recipients will use the electronic system in lieu of the Office of Personnel Management Form 630 (Application to Become a Leave Recipient Under the Voluntary Leave Transfer Program), OPM Form 630-A (Request to Donate Annual Leave to a Leave Recipient under the Voluntary Leave Transfer Program (Within Agency)), and OPM Form 630-B (Request to Donate Annual Leave to a Leave Recipient Under the Voluntary Leave Transfer Program (Outside Agency)). When electronic methods are unavailable, employees must submit requests on the applicable OPM form. Implementing guidance for the electronic methods will be provided separately once the system is available.
5. Responsibilities for Funding and Budget Planning.
a.
The Assistant Secretary of the Army (Financial Management and Comptroller) and the DCS, G-8 (Financial Management) will coordinate and provide implementing guidance, as necessary, to comply with DoW requirements in reference 1g to ensure the availability of funding and budget planning for Civilian talent incentives.
b.
The DCS, G-1 will also provide implementing guidance and support as necessary.
c.
Commanders will ensure Civilian awards and incentive budgets are sufficiently funded and executed, consistent with DoW and Army guidelines, with emphasis on recruitment, retention, and recognition of outstanding performers—particularly in high-impact or hard-to-fill roles.
6. Proponent.
The Assistant Secretary of the Army (Manpower and Reserve Affairs) is the proponent for this policy. The DCS, G-1 will incorporate its provisions into AR 215–3, AR 672–20, AR 690–300, AR 690–500, AR 690–630, and AR 690–752 within 2 years of the date of this directive.
7. Duration.
This directive is rescinded on publication of the revised regulations.
Encl
Dan Driscoll
DISTRIBUTION:
Principal Officials of Headquarters, Department of the Army
Commander
- U.S. Army Western Hemisphere Command
- U.S. Army Forces Command
- U.S. Army Transformation and Training Command
- U.S. Army Materiel Command
- U.S. Army Pacific
- U.S. Army Europe and Africa
- U.S. Army Central
- U.S. Army North
- U.S. Army Special Operations Command
- U.S. Army Transportation Command
- U.S. Army Space and Missile Defense Command/Army Strategic Command
- U.S. Army Cyber Command
- U.S. Army Medical Command
- U.S. Army Intelligence and Security Command
- U.S. Army Corps of Engineers
- U.S. Army Audit Agency
- U.S. Army Military District of Washington
- U.S. Army Test and Evaluation Command
- U.S. Army Human Resources Command
- U.S. Army Corrections Command
- U.S. Army Reserve Command
Superintendent, U.S. Military Academy
Director, U.S. Army Criminal Investigation Division
Director, U.S. Army Civilian Human Resources Agency
Executive Director, Military Postal Service Agency
Director, U.S. Army Joint Counter-Small Unmanned Aircraft Systems Office
Superintendent, Arlington National Cemetery
Director, U.S. Army Acquisition Support Center
CF:
Commander, Eighth Army
REFERENCES
Enclosure
a. Title 5, United States Code, Chapters 35, 43, 53, 63, and 75
b. Title 5, Code of Federal Regulations, Parts 432, 531, 576, 630, and 752
c. Office of Personnel Management memorandum (Performance Management for Federal Employees), 17 June 2025
d. Secretary of War memorandum (Modern Workforce Management), 30 September 2025
e. Deputy Secretary of Defense memorandum (Workforce Acceleration and Recapitalization Incentive Implementation), 8 April 2025
f. Undersecretary of War for Personnel and Readiness (USW(P&R)) memorandum (Separation of Employees With Unacceptable Performance), 30 September 2025
g. USW(P&R) memorandum (Implementation Guidance on Civilian Incentives and Awards To Retain and Reward Top Talent), 30 September 2025
h. Undersecretary of Defense for Personnel and Readiness (USD(P&R)) memorandum (Implementation of the Mandatory Supervisory Critical Element, “Holding Employees Accountable”), 15 September 2025
i. Department of Defense (DoD) Instruction 1400.25, Volume 431 (DoD Civilian Personnel Management System: Performance Management and Appraisal Program), 4 February 2016, incorporating Change 4, effective 18 August 2025
j. DoD Instruction 1400.25, Volume 451 (DoD Civilian Personnel Management System: Awards), 4 November 2013, incorporating Change 2, effective 30 July 2025
k. Office of the Assistant Secretary of the Army (Manpower and Reserve Affairs) memorandum (Defense Performance Management and Appraisal Program (DPMAP) Supervisory Elements and Standards), 1 April 2025
l. Acting Deputy Assistant Secretary of the Army (Civilian Personnel) memorandum (Guidance on Awards for Department of the Army Civilian Employees for Fiscal Year 2025), 25 February 2025.
m. Army Regulation (AR) 215–3 (Nonappropriated Funds Instrumentalities Personnel Policy), 7 May 2024
n. AR 672–20 (Incentive Awards), 6 November 2024
o. AR 690–300 (Employment), 5 June 2025
p. AR 690–500 (Pay and Allowances Administration), 30 June 2022
q. AR 690–630 (Absence and Leave), 18 August 2023
r. AR 690–752 (Discipline and Adverse Actions), 10 February 2022
View Official Army Directive 2026-18 (PDF)
Source: U.S. Army Publishing Directorate (APD)