Professional Managers Association – Legislative Update
March 2026March brought continued movement on federal workforce policy, with major developments from OPM and OMB and continued funding uncertainty on Capitol Hill. For IRS managers, the biggest takeaway is that the federal personnel landscape is continuing to shift quickly—especially in the areas of performance management, reductions in force, internal controls, hiring processes, and agency operations.
At OPM, March was an active month for new management guidance. On March 17, OPM issued guidance on streamlining vetting processes in support of the Merit Hiring Plan, reinforcing agency responsibilities to improve and accelerate personnel vetting. On March 19, OPM also announced the OPM HR Shared Service Center, presenting it as a governmentwide effort to standardize HR functions, reduce fragmentation, and shift administrative burden away from program staff so agencies can focus more directly on mission delivery. For managers, these actions signal continued pressure toward centralized, standardized workforce processes.
OPM also advanced changes that could significantly affect performance management and workforce reshaping. A proposed Reduction in Force rule published March 5 would revise how employees are ranked during RIF actions, including changes to how performance is credited in retention standing. In addition, OPM revised its earlier Performance Management for Federal Employees memorandum on March 24, while a March 26 Federal Register correction kept moving forward a broader proposed overhaul of appraisal rules that would allow more standardized rating distributions and change several long-standing performance system practices. These are important developments for supervisors because they point toward stricter performance differentiation and potentially greater management discretion during organizational change.
OMB also issued two March items worth watching. On March 10, OMB released a revised Circular A-123, reaffirming that agencies must assess and report annually on internal control and that managers are accountable for establishing governance structures, identifying risks, and correcting weaknesses. Then on March 31, OMB issued M-26-10, requiring covered CFO Act agencies to begin monthly reporting on certain IT contracts and to strengthen CIO oversight, information sharing, and acquisition transparency beginning in May. While these are not IRS-only actions, they reinforce a broader Administration focus on accountability, oversight, controls, and centralized review of major operational decisions.
On Capitol Hill, March was dominated more by appropriations and agency funding than by new federal workforce legislation. The most visible funding fight involved the Department of Homeland Security. On March 27, the House passed H.R. 7147, the Further Additional Continuing Appropriations Act, 2026, which House appropriators said would fully reopen DHS and pay affected personnel. Earlier in the month, reporting from FEDagent highlighted that roughly 100,000 DHS employees were working without pay during the impasse. For PMA members, the larger point is that budget instability remains a real management issue across government, even when it does not directly center on IRS appropriations.
For IRS operations specifically, the fiscal backdrop remains tight. Although enacted in early February rather than March, the FY 2026 Financial Services and General Government Appropriations Act continued to shape March discussions. Senate appropriators said the law provides $11.2 billion for IRS, with $3 billion for taxpayer service, while holding overall IRS funding flat or reduced for the fourth consecutive year and “restraining IRS enforcement while bolstering taxpayer services.” For IRS managers, that combination means continued pressure to deliver service improvements while operating in a constrained budget environment.
Outside official government sources, federal workforce outlets underscored how quickly the policy environment is changing. Federal News Network reported in March that even seasoned federal employees are struggling to keep pace with the volume of personnel policy changes, citing the combined effects of the DHS shutdown, Schedule Policy/Career conversions, and new RIF rules. FEDweek also reported that OPM’s retirement application backlog had climbed above 65,200 by the end of February, up sharply from about 36,500 at the end of October. Together, these reports reinforce that managers are operating in a highly fluid environment where policy shifts are arriving faster than agencies can fully absorb them.
PMA’s TakeFor PMA members, March’s developments point to three themes. First, management accountability expectations are rising, especially around performance, internal controls, and operational oversight. Second, centralization is expanding, whether through shared HR services, hiring and vetting guidance, or increased OMB oversight of agency functions. Third, budget uncertainty remains a serious workforce issue, with March’s DHS funding battle serving as another reminder that disruptions in Washington still translate into real operational and employee impacts. PMA will continue monitoring how these changes affect IRS managers and will keep advocating for clear guidance, practical implementation, and workplace stability.
Members of Congress, TIGTA, and external watchdogs are focusing on:
PMA continues to monitor legislative and policy developments affecting IRS managers and the federal workforce. As discussions move forward, PMA remains focused on advocating for policies that support effective leadership across the agency.
Current PMA advocacy priorities include:
Manager Pay Reform
Supporting a modern pay structure that allows managers to advance professionally without needing to change positions or business units.
Leadership Development
Promoting expanded training, mentoring, and professional development opportunities for IRS managers.
Operational Support
Ensuring managers have access to modern technology, adequate staffing resources, and tools needed to lead their teams effectively.
Workforce Stability
Supporting policies that strengthen recruitment, retention, and employee engagement across the IRS workforce.
As legislative developments continue to unfold in Washington, PMA will keep members informed about policy changes that may affect IRS managers and the broader federal workforce.
IRS managers play a vital role in ensuring the agency continues to meet its mission of serving the American public. PMA remains committed to ensuring the voice of IRS leadership is represented in the policy discussions shaping the future of the agency.
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