This bill prohibits the Department of Veterans Affairs (VA) from providing certain senior level employees with a critical skill incentive, which is generally a payment bonus for employees possessing a high-demand skill or skill that is at a shortage. Specifically, the VA may not provide such an incentive to an employee in a Senior Executive Service position or other comparable position at the central office of the VA (e.g., the Veterans Health Administration), regardless of the actual location where the employee performs the functions of the position.

The bill also provides that an incentive may be provided to senior-level employees on an individual basis and upon approval by specified officers (e.g., the Under Secretary for Health). Additionally, senior-level employees whose positions are primarily at the central office of the VA but perform some portion of the job function at other VA facilities are exempt from the prohibition.

The VA must report to Congress annually regarding senior-level employees who were provided a critical skill incentive.