---
kind: "section"
citation: "5 U.S.C. § 5401"
title: "5"
title_heading: "Government Organization and Employees"
number: "5401"
heading: "Purpose"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/5401"
units:
  - "Part III — Employees"
  - "Subpart D — Pay and Allowances"
  - "Chapter 54 — Human Capital Performance Fund"
---

# §5401. Purpose


The purpose of this chapter is to promote, through the creation of a Human Capital Performance [Fund](/usc/5/8401.md?p=6), greater performance in the Federal [Government](/usc/5/4101.md?p=3). Monies from the [Fund](/usc/5/8401.md?p=6) will be used to reward [agencies](/usc/5/3132.md?p=a-1)’ highest performing and most valuable [employees](/usc/5/4701.md?p=a-2). This [Fund](/usc/5/8401.md?p=6) will offer Federal managers a new tool to recognize [employee](/usc/5/4701.md?p=a-2) performance that is critical to the achievement of [agency](/usc/5/3132.md?p=a-1) missions.


## Source credit

(Added Pub. L. 108–136, div. A, title XI, § 1129(a), Nov. 24, 2003, 117 Stat. 1642.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 5401, added Pub. L. 95–454, title V, § 501, Oct. 13, 1978, 92 Stat. 1180; amended Pub. L. 97–346, § 2, Oct. 15, 1982, 96 Stat. 1647; Pub. L. 98–615, title II, § 201(a), Nov. 8, 1984, 98 Stat. 3208; Pub. L. 102–378, § 2(37), Oct. 2, 1992, 106 Stat. 1351, stated purpose of chapter to provide a performance management and recognition system, prior to repeal by Pub. L. 103–89, § 3(a)(1), (c), Sept. 30, 1993, 107 Stat. 981, 983, eff. Nov. 1, 1993.