---
kind: "section"
citation: "5 U.S.C. § 5403"
title: "5"
title_heading: "Government Organization and Employees"
number: "5403"
heading: "Human Capital Performance Fund"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/5403"
units:
  - "Part III — Employees"
  - "Subpart D — Pay and Allowances"
  - "Chapter 54 — Human Capital Performance Fund"
---

# §5403. Human Capital Performance Fund

- (a) There is hereby established the Human Capital Performance [Fund](/usc/5/8401.md?p=6), to be administered by the [Office](/usc/5/5402.md?p=3) for the purpose of this chapter.
- (b)
  - (1)
    - (A) An [agency](/usc/5/3132.md?p=a-1) shall submit a plan as described in [section 5406](/usc/5/5406.md) to be [eligible](/usc/5/4701.md?p=a-3) for consideration by the [Office](/usc/5/5402.md?p=3) for an allocation under this section. An allocation shall be made only upon approval by the [Office](/usc/5/5402.md?p=3) of an [agency](/usc/5/3132.md?p=a-1)’s plan.
    - (B)
      - (i) After the reduction for [training](/usc/5/4101.md?p=4) required under [section 5408](/usc/5/5408.md), ninety percent of the remaining amount appropriated to the [Fund](/usc/5/8401.md?p=6) may be allocated by the [Office](/usc/5/5402.md?p=3) to the [agencies](/usc/5/3132.md?p=a-1). Of the amount to be allocated, an [agency](/usc/5/3132.md?p=a-1)’s pro rata distribution may not exceed its pro rata share of Executive branch payroll.
      - (ii) If the [Office](/usc/5/5402.md?p=3) does not allocate an [agency](/usc/5/3132.md?p=a-1)’s full pro rata share, the undistributed amount remaining from that share will become available for distribution to other [agencies](/usc/5/3132.md?p=a-1), as provided in [subparagraph (C)](#b-1-C).
    - (C)
      - (i) After the reduction for [training](/usc/5/4101.md?p=4) under [section 5408](/usc/5/5408.md), ten percent of the remaining amount appropriated to the [Fund](/usc/5/8401.md?p=6), as well as the amount of the pro rata share not distributed because of an [agency](/usc/5/3132.md?p=a-1)’s failure to submit a satisfactory plan, shall be allocated among [agencies](/usc/5/3132.md?p=a-1) with exceptionally high-quality plans.
      - (ii) An [agency](/usc/5/3132.md?p=a-1) with an exceptionally high-quality plan is [eligible](/usc/5/4701.md?p=a-3) to receive an additional distribution in addition to its full pro rata distribution.
  - (2) Each [agency](/usc/5/3132.md?p=a-1) is required to provide to the [Office](/usc/5/5402.md?p=3) such payroll information as the [Office](/usc/5/5402.md?p=3) specifies necessary to determine the Executive branch payroll.

## 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 5403, added Pub. L. 95–454, title V, § 501, Oct. 13, 1978, 92 Stat. 1182; amended Pub. L. 98–615, title II, § 201(a), Nov. 8, 1984, 98 Stat. 3209; Pub. L. 101–509, title V, § 529 [title I, § 101(b)(4)(C)], Nov. 5, 1990, 104 Stat. 1427, 1439; Pub. L. 102–378, § 2(38), Oct. 2, 1992, 106 Stat. 1351, related to general pay increases, prior to repeal by Pub. L. 103–89, § 3(a)(1), (c), Sept. 30, 1993, 107 Stat. 981, 983, eff. Nov. 1, 1993.