The FED Weekly Blog Site

Sep 1, 2025

Beyond the Sticker Shock: Navigating 2025 FEHB Premium Increases and the Federal Worker Maze (24-30 Aug 2025, Episode 13)

1. The Great Premium Hike: How 2025’s FEHB Increase Rewrites Your BudgetIf you’re like me, you probably braced yourself for the annual health insurance premium increase—but nothing could have prepared us for the 2025 FEHB premiums. The Office of Personnel Management (OPM) has confirmed a jaw-dropping 13.5% average increase for our share of Federal Employees Health Benefits (FEHB) premiums. That’s not just a number on a chart; it’s the steepest hike in nearly two decades, and it’s about to hit every federal employee and retiree right where it hurts: the wallet.Sticker Shock: What Does a 13.5% Premium Hike Mean?Let’s break it down. For most of us, this translates to an average of $26.10 more per biweekly paycheck—that’s over $678 a year, assuming you’re paid every two weeks. Even if you’re already brown-bagging lunch and skipping the daily coffee run, this is a serious chunk of change. The 2025 FEHB premium increase doesn’t just nibble at the edges of our budgets; it takes a big bite.2025 FEHB premiums: +13.5% enrollee shareAverage biweekly cost: +$26.10Government contribution: +10.1% (not keeping pace with our share)Dental premiums: +2.97%Vision premiums: +0.87%While dental and vision plans are seeing only modest increases—2.97% and 0.87% respectively—it’s the core health insurance premium hike that’s rewriting our financial plans for 2025. If you’re feeling the pressure, you’re not alone. As Doreen Greenwald of the National Treasury Employees Union put it:“It’s a double whammy: historic health insurance increases and an insufficient pay raise. Employees are taking the hit.”Why Is This Happening?OPM’s guidance points to rising healthcare costs nationwide, but the numbers tell a story of growing federal employee budget pressure. The government’s share of FEHB premiums is only rising by 10.1%, leaving the rest for us to cover. This gap means more of our paychecks are going to health insurance, even as pay raises struggle to keep up.A Painful Trend ContinuesThis isn’t a one-off. The 2025 FEHB premium hike follows a 7.7% increase in 2024 and an 8.7% jump in 2023. For many of us, it feels like every year brings a new record—and not the kind we want to celebrate. The steady climb of health insurance premium increases is forcing a lot of tough choices about coverage, out-of-pocket costs, and even basic household spending.For federal employees and retirees, the message is clear: 2025’s FEHB premium increase isn’t just a number—it’s a major shift in how we budget, plan, and protect our families’ health. The maze of options and rising costs means we have to be more vigilant than ever about our choices and our wallets.2. The Real Villains: Why Are Health Insurance Premiums Soaring?If you’re like me, you probably opened your 2025 FEHB premium notice and did a double take. The sticker shock is real: a 13.5% average health insurance premium increase for enrollees, the largest jump in almost 20 years. But what’s really driving these numbers? Let’s pull back the curtain on the true premium increase factors—because it’s not just “inflation” anymore.Prescription Drug Cost Increase: The GLP-1 EffectOne of the biggest culprits behind this year’s health insurance premium increase is the explosion in prescription drug costs. The Office of Personnel Management (OPM) specifically called out GLP-1 anti-obesity medications—think Ozempic and Wegovy—as top cost escalators. These drugs are game-changers for many, but their price tags are staggering. Last week, a colleague shared how their plan’s preferred pharmacy price for a single medication tripled overnight. These are the ripple effects we’re all feeling.It’s not just the cost per pill, either. More people are using these new treatments, and plans are scrambling to keep up. As one industry insider put it:'It’s not just prices going up—it’s the treatments changing. The way we access care is evolving, and the plans are trying to catch up.'Behavioral Health Spending Increase: Demand SpikesAnother major driver is the surge in behavioral health spending. Since the pandemic, demand for mental health and substance use services has soared. More outpatient visits, therapy sessions, and telehealth appointments mean higher costs for FEHB plans. While this is a positive sign that people are getting help, it’s also adding to the premium hike. OPM’s data shows behavioral health utilization is up sharply, and that’s directly reflected in what we pay.Rising Provider Prices and Outpatient ProceduresHospital bills and outpatient procedures are also getting pricier. Providers are charging more for everything from routine checkups to complex surgeries. Even outpatient care—which was supposed to be a cost-saver—has seen price inflation. These rising provider and supplier prices are a key premium increase factor that’s hard to ignore.Government Contribution Rates: Not Keeping PaceHere’s where it really stings: while the government is increasing its share of FEHB premiums by 10.1%, that’s still less than the 13.5% jump for enrollees. The gap means more of the health insurance premium increase lands on our shoulders. OPM sets government contribution rates based on healthcare usage data and cost inflation, but the numbers just aren’t keeping up with the reality on the ground.Key cost drivers: Provider price hikes, prescription drug usage (especially GLP-1s), increased behavioral health spendingGovernment’s share: 10.1% increase vs. 13.5% for enrolleesRipple effects: Pharmacy prices, outpatient costs, and mental health services all upBottom line: the real villains behind our soaring premiums are a mix of new drug therapies, higher demand for behavioral health, and relentless provider price hikes. The government’s contribution helps, but just isn’t enough to shield us from the full impact of these trends.3. Open Season Survival: Strategies for Picking (and Surviving) Your 2025 PlanLet’s be honest—this year’s FEHB open season is not one to sleep through. With premium hikes averaging 13.5% (and some plans jumping even higher), the stakes are real for federal employees and retirees. The open season dates for 2024 are November 11 to December 9, and yes, I’ve set three alarms to remind myself. If you’re like me, you know that auto-renewing your plan could cost you hundreds more in 2025. So, how do you navigate the maze and come out ahead?Mark Your Calendar—This Year, It’s CriticalFirst things first: Open Season is your annual window to review, compare, and change your health, dental, and vision plans. The dates—November 11 to December 9, 2024—are non-negotiable. Miss it, and you’re locked in until next year unless you have a qualifying life event. I can’t stress enough how important it is to set reminders. I even have a sticky note on my monitor that says, “Don’t just auto-renew!”Not All FEHB Plans Are Created EqualHere’s the good news: Not every FEHB plan is raising premiums by double digits. Some plans are seeing smaller increases, and a rare few are actually dropping their rates. The average increase is $26.10 more per biweekly paycheck, but your actual hit depends on your plan. This is why reviewing your FEHB plan options for 2025 is more important than ever. Don’t assume your current plan is still the best deal—dig into the details and compare!“Every year, I find a hidden gem plan with lower costs—don’t just auto-renew.”Retirees: You Can Switch, But Not Newly EnrollIf you’re retired, you can still change your FEHB plan during Open Season, but you can’t newly enroll if you’re not already in the program. This is a crucial distinction. For retirees, this window is your only chance to adjust coverage and potentially offset those premium hikes. The same goes for FEDVIP (dental and vision)—both are open for changes during the same period, with more modest increases (2.97% for dental, 0.87% for vision).Actionable Tips: Survive and Thrive This Open SeasonUse Plan Comparison Tools: OPM’s comparison tool lets you see side-by-side costs, coverage, and out-of-pocket estimates. Don’t skip this step.Talk to the Office Expert: Every workplace has that one person who knows the ins and outs of federal employee enrollment changes. Buy them a coffee and pick their brain.Check for Hidden Gems: Some plans quietly offer better value, especially if your needs have changed (think: new prescriptions, more behavioral health coverage, or upcoming procedures).Review FEDVIP Too: Even if medical premiums are the headline, dental and vision changes can add up. Compare those options as well.Remember, changing plans could substantially offset out-of-pocket increases. Don’t let sticker shock freeze you—be proactive, compare, and choose wisely during the 2024 FEHB open season.4. The Shifting Tides: Pay Raises, Policy Shakeups, and Retirement Planning CurveballsIf you’re a federal employee or retiree, you already know that every year brings a new set of twists in federal employee pay policy and retirement benefits analysis. But 2025 and beyond are shaping up to be a real rollercoaster. Let’s break down what’s happening with the federal employee pay raise 2025, the latest policy shakeups, and the curveballs heading for retirement planning.2025 Federal Employee Pay Raise: A Modest 1% (Unless You’re Law Enforcement)After months of rumors about a possible pay freeze, the administration finally revealed its hand: most civilian federal employees will get an average 1% pay raise in 2025. That’s right—just one percent. For those in law enforcement, there’s a targeted boost of 3.8%, aiming to match the raise for uniformed military service members. But for the vast majority of us, it’s a far cry from what’s needed to keep up with rising FEHB premiums and inflation.General pay raise for 2025: 1% for most jobsLaw enforcement: 3.8% targeted raiseTo put it bluntly, this increase won’t come close to offsetting the sticker shock many of us are feeling from health insurance hikes and the general cost of living. The federal employee pay policy remains a hot topic, with many workers frustrated that their paychecks just aren’t keeping pace.Retirement Benefits Analysis: The “Diet COLA” Strikes AgainFor retirees, the annual cost-of-living adjustment (COLA) is always a big deal. The 2026 COLA projections are out, and they’re a mixed bag:CSRS retirees: 2.5% to 2.6% projected COLAFERS retirees: 2% to 2.1% projected COLAHere’s the kicker: FERS retirees are once again facing the infamous “diet COLA.” By law, when inflation is between 2% and 3%, FERS COLA is capped at 2%, even if the actual inflation rate is higher. CSRS retirees get the full adjustment, but for the majority under FERS, this cap means their retirement benefits lose purchasing power year after year. It’s a long-standing frustration that shows no sign of going away.Shutdown Wobbles: The Threat Is RealAs of late September 2025, Congress still hasn’t passed new funding bills. The threat of a government shutdown is more than just background noise—it’s a real risk. I’ll admit, I used to roll my eyes at shutdown warnings, thinking they were just political theater. That changed the year I spent a holiday season on unpaid furlough. That lesson stuck with me. As I always say:During shutdowns, back pay is cold comfort when rent’s due.Retirees will still get their payments, but many services and processes stall. For active employees, the uncertainty can be financially and emotionally draining.Between modest pay raises, “diet COLA” frustrations, and the ever-present threat of shutdowns, federal workers and retirees are navigating some truly shifting tides in 2025 and beyond.5. Wild Cards and the Kitchen Sink: New Legislation, Agency Oddities, and What to WatchIf you’ve been following federal employee enrollment changes and the evolving FEHB plan options for 2025, you know that the only constant in federal service is change—and the fine print. This year, the “wild cards” are coming fast and furious, from agency shakeups to legislative curveballs that could reshape retirement coach federal benefits and more. Let’s break down what’s happening, what it means for you, and what to keep an eye on as you navigate the maze.First, some rare good news: the IRS, after months of uncertainty, has officially canceled its planned mass layoffs. Instead of shrinking further (after already losing about a quarter of its workforce), the agency is pivoting to strategic hiring and targeted reassignments. They’re even rescinding some deferred resignation offers from the earlier “fork in the road” program. For federal employees worried about job security, this is a welcome—if unexpected—upside. It’s a reminder that agency plans can change on a dime, and that flexibility remains a key survival skill in federal careers.Meanwhile, the Office of Personnel Management (OPM) is shaking things up with its performance award overhaul. The new approach? Bigger bonuses, but for fewer folks. Agencies now have until September 8, 2025, to submit their compliance plans, and the message is clear: performance will matter more than ever. For some, this could mean a shot at a more substantial reward; for others, it may feel like the stakes just got higher. OPM is also centralizing its guidance for chief human capital officers, making it easier to find the latest rules and updates on opm.gov. And in a surprise move, the 2025 Federal Employee Viewpoint Survey (FEVS) has been canceled, with plans to retool and relaunch it in 2026. If you’re someone who relies on these surveys for a pulse on morale and agency culture, you’ll have to wait another year for fresh data.On the legislative front, a couple of key bills are worth watching. The Federal Retirement Fairness Act (HR 1522) remains in committee, but if it passes, it would allow employees who started in temporary positions to “buy back” that time for FERS retirement credit. This could be a game-changer for many, especially those who’ve spent years in non-deduction service. Another bill, the Federal Employee Performance and Accountability Act, could usher in a pay-for-performance pilot with sharper rewards—and penalties—tying pay more closely to performance metrics. And for military retirees, the Forward Act could open the door to continued TSP contributions after separation, a twist that would reshape the retirement landscape for certain veterans.All told, pending legislation and agency policy changes add yet another layer of uncertainty to federal careers. As we look ahead to 2025 FEHB premium increases and the ever-shifting benefits landscape, remember: staying informed and adaptable is your best defense. Because in federal service, the wild cards are always in play—and the rules can change when you least expect it.TL;DR: FEHB premiums are jumping an eye-watering 13.5% in 2025—more than double most pay raises. Prescription costs, behavioral health, and government cost-shifting are fueling the pain. Reviewing benefits this fall’s Open Season is crucial—don’t miss out. Government shutdown threats and policy overhauls add even more unpredictability to federal work life. Stay alert, double-check your plans, and don’t let the system outpace you.

12 Minutes Read

Sep 1, 2025

Boots on the Ground: Unpacking the 2025 Federal Forces Deployments and Their Unintended Ripples (17-23 Aug 2025, Episode 12)

Unexpected Guests: Washington D.C.’s National Guard SurgeAugust 2025 brought a scene to Washington, D.C. that felt more like a military exercise than daily city life. I watched as over 2,000 National Guard troops—reinforced by more than 700 additional Guard members from West Virginia, South Carolina, and Ohio—fanned out across the capital. This wasn’t just a show of force; it was the largest Washington D.C. deployment of National Guard troops in recent memory, all under the banner of the “DC Safe and Beautiful Task Force.”Federalized Police: A Rare and Controversial MoveWhat truly set this deployment apart was the federalization of the D.C. Metropolitan Police Department for a full 30 days. As someone who has followed city politics for years, I recall no time when the local police force was placed under such direct federal control. The administration argued this was necessary to coordinate the crime crackdown in 2025 and address homelessness, but it sparked immediate debate. One legal scholar told me,“This represents a fundamental alteration of the traditional civil-military relationship in the United States.”Crime Numbers: Miracle or Mirage?The administration was quick to claim victory. “The deployment has resulted in a miracle reduction in crime,” they announced, pointing to over 700 arrests and 91 illegal firearms seized by late August. However, upon examining DOJ trend data, I found that violent crime in D.C. had already been declining throughout 2024 and into 2025. Was the miracle really the result of boots on the ground, or was it a narrative crafted for headlines?2,000+ National Guard troops in D.C. by mid-August 2025700+ reinforcements from three states30 days of federalized Metro Police700+ arrests, 91 illegal firearms seizedTourist Hotspots Turned Military ZonesWalking through Union Station, the National Mall, and even the steps of the Lincoln Memorial, I saw heavily armed patrols where tourists once snapped selfies. The presence of camouflaged troops and armored vehicles created a surreal urban landscape. It was clear this was more than a temporary measure—it was a fundamental reshaping of civil-military lines in the heart of the nation’s capital.Public Pushback: D.C. Residents Say “No”Despite the administration’s claims, nearly 80% of D.C. residents voiced opposition to the military deployment, according to recent polls. Many locals I spoke with felt uneasy, describing the city as “occupied” and questioning whether the Washington D.C. deployment was truly about safety or about sending a political message. Legal challenges began to mount, with civil rights groups warning of lasting consequences for the balance between public safety and civil liberties.With visits from Vice President JD Vance and Secretary of Defense Pete Hegseth, the message from the top was clear: this was a new era of federal intervention in city policing. But for those living and working in D.C., the question remained—at what cost?Déjà Vu Out West: Los Angeles, Mirrors and DiscordWhen I first heard about the Los Angeles deployment of federal forces in 2025, I couldn’t help but feel a sense of déjà vu. The headlines echoed what we’d seen in Washington D.C.—but out West, the stakes and the tensions felt even higher. The administration’s decision to send 700 Marines and 4,000 National Guard troops into Los Angeles streets, especially during the height of the immigration raids, set off a chain reaction that’s still reverberating through the city.Los Angeles Deployment: A Template or a Warning?The Los Angeles deployment was pitched as a “model for other Democratic-led cities,” with the administration pointing to the D.C. Safe and Beautiful Task Force as a proof of concept. But on the ground, the similarities and differences quickly became clear. While D.C. saw a federalized police force and armed patrols, L.A. faced a unique cocktail: military boots on the ground during mass protests against immigration raids, and a city government openly resisting federal directives.Scale: L.A. had nearly 5,000 federal troops—significantly more than D.C.’s 2,700.Mission: While both deployments cited crime and homelessness, L.A.’s focus on immigration enforcement brought a different kind of urgency and public scrutiny.Local Response: Unlike D.C., Los Angeles officials filed immediate legal challenges and refused to cooperate with federal command structures.Legal Flashpoint: The Posse Comitatus Act in the SpotlightThe legal battle lines were drawn almost instantly. Civil rights groups and city attorneys invoked the Posse Comitatus Act, a law that “historically limits the use of the military for domestic policing.” The Act became the centerpiece of court filings, with opponents arguing that the deployment blurred the line between military and civilian law enforcement in dangerous ways.“Legal and constitutional questions under the Posse Comitatus Act, which historically limits the use of the military for domestic policing.”The administration countered by citing emergency powers and pointing to the Trump-era playbook, but the courts in California proved less receptive. For many, Los Angeles became the legal flashpoint—a test case for how far federal forces' deployment could go before running afoul of the Constitution.Discord on the Streets: Protests and Political TensionsIf the legal fight was fierce, the public response was even more intense. The deployment coincided with a new wave of immigration raids in 2025, sparking major protests across the city. I saw firsthand how military patrols in neighborhoods like Boyle Heights and Koreatown fueled anger and fear. Local officials, including the mayor, openly clashed with federal commanders, accusing them of overreach and undermining community trust.Protesters blocked streets and government buildings, demanding an end to the raids and the withdrawal of troops.Legal observers documented dozens of arrests and alleged civil rights violations.National headlines questioned whether Los Angeles was a mirror of D.C.—or a warning for what could come next elsewhere.The Los Angeles deployment, with its echoes of past federal interventions and its sharp legal and social divides, left the city—and the country—asking hard questions about the future of federal forces deployment and the boundaries set by the Posse Comitatus Act.Next Stop: Chicago—A Powder Keg in Waiting?If you’ve been following the headlines, you’ve probably noticed Chicago is “frequently cited as the next target” for federal military deployment. After the high-profile operations in Washington, D.C., and Los Angeles, the administration’s push for federal intervention in cities has landed squarely in the Windy City’s crosshairs. But unlike in D.C., where the deployment was met with a mix of support and skepticism, Chicago’s planned deployment has sparked a full-blown political and legal firestorm.Mounting State and City OppositionIllinois Governor J.B. Pritzker and Chicago Mayor Brandon Johnson have been outspoken in their rejection of any Chicago military deployment. Both leaders have issued multiple statements denouncing the idea as an “illegal” overreach, directly referencing state sovereignty and the limits of federal power. In a joint press conference, Mayor Johnson declared, “We will not allow our city to become a testing ground for unconstitutional military policing.” Governor Pritzker echoed this, warning that “federal intervention in cities without state consent sets a dangerous precedent.”State government objections have centered on the Posse Comitatus Act, which restricts the use of federal military forces for domestic law enforcement.Illinois officials argue that any deployment would violate both state and federal law and have threatened legal action if the administration moves forward.Local leaders have also pointed to the lack of consultation and the potential for escalation, especially in a city already grappling with strained police-community relations.Lessons (Not) Learned: D.C. and L.A. Shape the Chicago DebateThe administration has touted the D.C. Safe and Beautiful Task Force as a model, claiming a “miracle reduction in crime.” But critics—armed with Justice Department data showing crime was already on the decline—see the operation as political theater. In Los Angeles, similar deployments led to weeks of protests and accusations of federal overreach. Now, Chicago officials are warning that these “lessons learned” have not been absorbed.Public fear is palpable. Community groups and civil rights organizations have mobilized, warning that military patrols could inflame tensions and undermine trust in local institutions. The rhetoric around the military deployment controversy is intense, with some activists calling the plan “an abuse of power waiting to happen.”Chicago’s Legal Position: Drawing a Line in the SandChicago’s city council has already passed a resolution opposing any federal military deployment, citing both legal and ethical grounds. City attorneys are preparing to challenge any executive order in court, should the administration attempt to bypass state objections. The city’s legal team insists that, without a formal request from the governor, any deployment would be “unquestionably illegal.”“Chicago frequently cited as the next target.”As the debate rages on, Chicago stands as a potential powder keg—where the clash between federal authority and local autonomy could set a national precedent for future federal intervention in cities.Collateral Damage: How These Deployments Rattle Veterans and TroopsWhen we discuss the deployment of federal forces and the mobilization of the National Guard, the headlines typically focus on strategy and security. But for those of us in uniform—and those who’ve hung up the boots—the real story is often about the ripple effects these moves have on our daily lives. This year’s rapid-fire executive orders and policy changes have left many of us feeling like we’re standing on shifting ground, unsure what’s coming next.Sudden Policy Swings: From DEI Rollbacks to ReinstatementsAugust 2025 brought a wave of executive orders that upended the controversy surrounding military deployments and personnel policy. One order directed the Pentagon to reinstate service members discharged for refusing the COVID-19 vaccine—with full rank, benefits, and back pay. For some, this is a long-awaited correction. For others, it’s a source of tension, reopening old wounds and raising questions about fairness and readiness.At the same time, all diversity, equity, and inclusion (DEI) initiatives were eliminated across the federal government and military. DEI offices were shuttered overnight, and race- and gender-based hiring preferences were banned. For many troops, especially those from underrepresented backgrounds, this felt like a step backward. The Department of the Air Force also revoked early retirement authority for transgender personnel. It rolled out stricter separation rules, moves that advocacy groups have condemned as punitive and even illegal.Morale on Shaky Ground: Uncertainty for Troops and FamiliesThese top-down shifts have left commanders and HR scrambling to interpret and implement new directives. The pace and scope of change are dizzying. It’s not just about policy—it’s about trust, cohesion, and morale. When service members see policies reversed overnight, it can feel like the rug’s been pulled out from under them. Families are left wondering what’s next, and retirees are forced to navigate new rules with little warning.Even pay and benefits aren’t immune. The Defense Finance and Accounting Service (DFAS) just changed how some retirees pay for the Survivor Benefit Plan (SBP). Now, those who don’t get enough retired pay to cover premiums must use a new federal portal, adding another layer of complexity—especially for “gray area” reservists and those with VA disability waivers.Veteran Leadership Milestones: A New EraAmidst the turmoil, there are bright spots that show the veteran community is evolving. On August 13, 2025, Carol Whitmore—a 36-year Army veteran—became the first female national commander in chief of the Veterans of Foreign Wars (VFW) in its 125-year history. Her election is more than symbolic; it signals a cultural shift as more women serve in combat and take on leadership roles. As Whitmore herself put it:“I may be the first veteran to have been elected VFW commander in chief while wearing a dress, but I will not be the last.”These milestones remind us that, even as policies shift and deployments change, the face of veteran leadership is evolving—and that change is here to stay.Ripples and Fault Lines: Laws, Legacies, and Legal LandminesAs I dig into the aftermath of the 2025 federal forces deployments, it’s clear that the legal and constitutional landscape is shifting beneath our feet. The Posse Comitatus Act, which has drawn a clear line between civilian law enforcement and military intervention for nearly 150 years, is once again at the center of heated debate. Every time federal troops or the National Guard are mobilized within U.S. cities, questions about the limits of executive power and the legality of federal intervention bubble to the surface. This year, those questions aren’t just theoretical—they’re shaping lives, careers, and the future of veterans’ services.The VA’s massive workforce reduction—nearly 30,000 jobs cut in 2025 alone—has been justified as a move toward efficiency and modernization. The department is merging 274 call centers into a single system and centralizing administrative functions across its sprawling network. But as one VA insider put it,“These changes are a top down political priority, likely creating significant disruption.” The tension between streamlining operations and maintaining quality care for veterans is palpable. The promise is that mission-critical positions are protected, but with so many roles disappearing, the risk of service gaps looms large.Meanwhile, Congress is making its own moves to counterbalance executive branch actions. The Pro Veterans Act, signed into law on August 14, 2025, is a prime example. It not only restricts incentive bonuses for top VA executives but also ramps up congressional oversight, requiring detailed quarterly budget briefings and fiscal plans. This is Congress flexing its muscle, determined to hold the VA’s leadership accountable in the face of sweeping change.Perhaps most striking is the legislative pushback against recent executive orders—especially those that make it easier to replace career civil servants with political appointees. The introduction of S. 1068, with its retroactive job protections for veterans, military spouses, and caregivers in federal service, is a direct response to concerns that the administration’s policies could disproportionately harm those who have already made sacrifices for the country. If passed, it would nullify removals and demotions dating back to January 20, 2025, and ensure that future actions are subject to independent review.All of this is happening as the VA tries to reinvent itself for a new generation of veterans, including the fastest-growing demographic: women. The election of the first female VFW leader is a symbol of this changing tide. Still, it’s the legal battles—over the Posse Comitatus Act, over executive orders, over retroactive protections—that will determine how inclusive, effective, and accountable our veterans’ institutions really become.In the end, these legal landmines and legislative ripples aren’t just about bureaucracy—they’re about the promises we make to those who serve, and how we keep them when the ground is shifting. The 2025 deployments have left us with more questions than answers. Still, one thing is sure: the fight over who controls the future of federal intervention, National Guard mobilization, and veterans’ care is far from over.TL;DR: Federal troop deployments in U.S. cities during 2025 are rattling civic life, sparking legal battles, shifting power dynamics, and raising crucial questions for the military, veterans, and everyday citizens alike. Change is happening at breakneck speed—staying informed has never been more critical.

13 Minutes Read

Aug 18, 2025

Behind the Headlines: The Human Stories Shaping Federal Workers in 2026 (10-16 Aug 2025, Episode 11)

It was nearly midnight when my phone buzzed with a text from a former coworker: “Heard about the pay freeze?” Despite being retired, anxiety surged in my chest. Federal workers—past and present—know these budget seasons can throw your whole world into question. Policies aren’t just a matter of numbers; they shape school plans, hospital visits, and even weekend picnics. Let’s dig beneath the headlines and see how these decisions are setting the stage for federal employees’ futures in ways that rarely make the news ticker. Showdown at the Capitol: Government Shutdowns and the True Cost for Federal Workers Every August, I brace myself for the headlines out of Washington, but this year, the government funding uncertainty August 2025 feels different. Both the House and Senate left for their August recess with the clock ticking and budget talks unfinished. As a federal worker, I know too well what this means: a real risk of a government shutdown come October 1st, the start of the new fiscal year. Stalled Appropriations: A Recipe for Uncertainty Let’s look at the numbers. As of the August recess, the House had only passed 2 out of 12 required appropriations bills. The Senate managed to pass 3. The rest? Stuck in committee or nowhere near the finish line. With the September 30, 2025 funding deadline looming, this gridlock is more than just political drama—it’s a direct threat to our paychecks, our benefits, and our peace of mind. Budget Battles: The 2026 Divide The Federal employee budget 2026 is at the heart of the standoff. The House’s proposal slashes nondefense spending by $15 billion compared to last year, while still coming in $148 billion higher than the President’s 2026 Budget request. The Senate’s numbers are even higher, reflecting deep ideological divides not just between parties, but also between Congress and the White House. These aren’t just numbers on a spreadsheet—they’re decisions that shape our daily lives. House: $15B less nondefense spending than last year House: $148B more than White House’s FY 2026 Budget Request Senate: Higher allocations, but still far from agreement Shutdowns: More Than Political Theater Shutdowns aren’t just political theater—they’re like a blizzard in a federal worker’s living room: unpredictable, expensive, and sometimes deeply personal. When funding lapses, paychecks stop. Essential employees might work without pay, while others are furloughed. Retirees—who rely on timely pension and healthcare services—face delays and uncertainty. The impact ripples through families, communities, and the very trust we have in our government workplace. Shutdowns aren’t just political theater—they’re like a blizzard in a federal worker’s living room: unpredictable, expensive, and sometimes deeply personal. Continuing Resolutions: Kicking the Can Down the Road With such deep divides, Congress often resorts to continuing resolutions—temporary fixes that keep the government open but solve nothing long-term. For those of us on the inside, it’s a cycle of anxiety and frustration. We watch as the Government shutdown impact federal workers becomes a bargaining chip, rather than a priority. Behind every headline about the FY 2026 Budget Request or the latest standoff, there’s a federal worker wondering how to pay the mortgage, a retiree checking for pension deposits, and a family holding its breath. This is the true cost of the Capitol’s annual showdown—and it’s a price we pay every time the budget battles drag on.Labor On the Line: Union Clashes and Job Security in the Crosshairs The summer of 2025 brought a seismic shift for federal employees, especially those whose livelihoods depend on collective bargaining agreements. As someone who’s watched these events unfold—and spoken with friends on the front lines—the impact feels both historic and deeply personal. Trump Administration Policies: Mass Contract Terminations Rock Federal Agencies On August 11, 2025, the Trump administration took unprecedented action by terminating major union contracts at the Department of Veterans Affairs (VA) and the Environmental Protection Agency (EPA). Over 400,000 VA workers and 8,000 EPA employees suddenly found their collective bargaining agreements wiped away. For many, it was a gut punch. As one EPA union rep told me at a recent rally: “Losing our contract felt like we were suddenly replaceable, not respected.” The administration cited executive order 14251 as justification, despite ongoing litigation and Office of Personnel Management (OPM) guidance advising agencies to wait for court outcomes. The move was widely seen as a direct attack on collective bargaining agreements for federal employees and a calculated effort to weaken union influence across the civil service. Union Pushback: AFGE and NTEU Mobilize for Worker Protections Unions like the American Federation of Government Employees (AFGE) and the National Treasury Employees Union (NTEU) responded with rapid mobilization. AFGE President Everett Kelly condemned the VA’s action as retaliation against workers who spoke out against the administration’s policies. Both unions urged members to contact Congress and advocate for the Protect America’s Workforce Act—a bill designed to restore bargaining rights and job security. August 14, 2025: AFGE launched an “SSA Day of Action” to rally Social Security workers and spotlight threats to job protections. EPA’s AFGE council vowed to continue fighting after their contract was canceled, signaling a pattern of union contract terminations across agencies. Adapting to New Threats: AFGE Restructures for the Fight Ahead Recognizing the scale of these attacks, AFGE announced a major internal restructuring on August 12, 2025. The union is reorganizing key departments to better defend members and counter the administration’s aggressive policies. This move reflects a new reality: defending AFGE union rights updates August 2025 and NTEU labor activism August 2025 now requires agility, legal savvy, and relentless advocacy. Job Security, Morale, and the Risk of a ‘Brain Drain’ The fallout is already visible. Federal workers face heightened anxiety about job security, especially as OPM guidance now emphasizes stricter probationary periods and easier removals for new hires. Morale is shaky. I’ll never forget what a friend at the EPA told me: losing the contract was “the professional equivalent of losing your seat in musical chairs.” Many fear a ‘brain drain’ as protections weaken and the civil service’s integrity is tested. If these changes stand, they could permanently reshape federal labor relations—diminishing union power, eroding job protections, and making it harder for agencies to attract and retain top talent. The Pay Paradox: Raises, Freeze Fears, and the Growing Compensation Gap When I talk with federal employees these days, the conversation always circles back to one thing: pay. The Federal employee compensation gap 2026 is no longer just a talking point—it’s a lived reality, and the headlines only scratch the surface. As of June 2025, the debate over the Federal employee pay raise proposals 2026 has become a tug-of-war with real consequences for families and futures. Freeze for Civilians, Raise for Military: The Numbers Behind the News President Trump’s FY 2026 budget proposal dropped a bombshell: a complete pay freeze for federal civilian workers. If it goes through, it’ll be the first since 2013. Meanwhile, military service members are slated for a 3.8% raise. The contrast is stark, and it’s not lost on anyone in the federal workforce. As one mid-career specialist told me at the park last week, "This isn’t just about money, it’s about respect." On the other side, Democratic lawmakers are pushing the FAIR Act, which would give federal employees a 4.3% average pay raise in 2026. This isn’t just a policy disagreement—it’s a deep partisan divide that’s playing out in real time, with the Federal employee budget 2026 hanging in the balance. Real-Life Math: What’s at Stake for Federal Families? Let’s break it down. For an average federal worker earning $70,000 a year, a 4.3% raise would mean an extra $3,010 before taxes. That’s groceries, a car payment, or a chunk of a child’s tuition. On the other hand, a pay freeze means no new money to keep up with rising costs. As one employee put it, "If you take a hard look at the numbers, the freeze isn’t just a number on a spreadsheet—it’s a dinner bill that doesn’t get paid." The Growing Federal-Private Sector Pay Gap Here’s where it gets even more personal. The Federal employee pay and benefits debate isn’t happening in a vacuum. Reports show private sector employees already out-earn their federal counterparts in many roles. If the freeze goes through, this gap will only widen, making it harder to recruit and keep talented people in federal service. Morale is already shaky, and the risk of losing skilled workers is real. Pay Policy as a Strategic Lever It’s clear that Trump administration federal workforce policies are using pay decisions as more than just budget tools. By limiting raises, the administration could be shaping the very size and makeup of the federal workforce. It’s a strategic move—one that could disincentivize new talent from joining and push experienced hands out the door. Meanwhile, the Office of Personnel Management is shifting how awards and bonuses are given, focusing on exceptional performance and moving away from across-the-board recognition. It’s a new era of targeted, merit-based rewards—but for many, the bigger question remains: will their base pay keep up with the world outside government?Performance Under Pressure: OPM Guidance Shakes Up Awards & Probation August 2025 will go down as a turning point for federal workers. That’s when the Office of Personnel Management (OPM) released its new performance management guidance—and suddenly, the rules of recognition and job security changed overnight. As someone who’s watched the federal workforce evolve for years, I can tell you: the impact is already rippling through cubicles and Teams chats across agencies. From “Everyone Gets a Trophy” to “Only the Best” The new OPM performance management guidance 2025 is crystal clear: awards and bonuses are no longer for everyone. Instead, agencies must reserve the biggest rewards for those who deliver truly “exceptional” results. OPM Director Scott Cooper didn’t mince words: “Awards have been spread too thinly, diluting impact. We’re aiming for a high performance culture.” That means the days of across-the-board recognition are over. Now, only the top 5-10%—the so-called “unicorns”—can expect the big bonuses. As a longtime program analyst in my office grumbled, “It used to be you’d get a nod for solid work—as of this year, unless you’re a unicorn, good luck even seeing a thank you.” For many, this shift from egalitarian recognition to competitive excellence feels like a double-edged sword. Sure, it raises the bar and rewards star performers, but it also leaves steady, reliable employees feeling invisible. Performance Ratings: The New Normal Another big change: normalized ratings. Agencies are being told to tighten up their performance appraisals, making it harder to rate everyone as “outstanding.” A colleague in HR confided to me that she’s bracing for more tense appraisal meetings this year, as managers are pushed to differentiate between “good” and “great”—and justify every rating. Non-Cash Perks on the Rise With cash awards shrinking for most, agencies are being encouraged to use non-cash benefits—like extra time off or quality step increases—to recognize real-time accomplishments. It’s a creative workaround, but for many, it doesn’t quite replace the feeling of a bonus in your bank account. Probation Gets Tougher: Job Security on Shaky Ground If you’re new to federal service, the news gets even tougher. On August 7, 2025, OPM issued updated guidance—rooted in Trump administration federal workforce policies—making probationary periods longer and stricter. Now, it’s easier for agencies to let go of underperformers before they become permanent employees. For early-career feds, federal employee job security feels shakier than ever. Performance management: Normalized ratings, focus on top 5-10%. Probation policy: Stricter rules, easier dismissals for new hires. Recognition: Non-cash perks up, broad-based awards down. These changes aren’t just policy tweaks—they’re reshaping office culture, fueling anxiety, and making every performance review feel like a high-stakes moment. For many, federal employee benefits 2026 now come with a new sense of uncertainty. Hidden Headaches: GAO’s Reports Reveal Agency Bumps (and Big Opportunities) When we talk about federal workforce news, it’s easy to focus on the headline-grabbing budget debates or sweeping modernization plans. But if you ask most federal employees or retirees what really shapes their daily experience, it’s often the “small” stuff—like whether a simple name change goes through without a hitch. The GAO report Office of Personnel Management August 2025 brought this reality into sharp focus, exposing how even the most basic administrative tasks can become hidden headaches with real consequences. On August 14, 2025, the Government Accountability Office released a report that zeroed in on a surprisingly persistent problem: the slow and cumbersome process for federal employees to update their names in agency records. At first glance, this might seem trivial. But as the GAO made clear, these delays can ripple out, affecting everything from pay and benefits to identification and morale. I’ve heard from colleagues who waited weeks—sometimes months—for a simple update, only to find their retirement paperwork or health benefits snarled in red tape. As one retiree told me, “The million-dollar budget debates are headline stuff, but I’ll bet a missed name change causes more stress in a month than Congress ever will.” This isn’t just about paperwork. The GAO’s August 2025 investigations into OPM highlighted deep-rooted management challenges and inefficiencies that go far beyond name changes. The OPM FY 2026 Congressional Budget and ongoing digital modernization efforts—like the digital retirement application system OPM 2025—promise a more streamlined future. But the GAO warns that unless agencies fix these fundamental bottlenecks, even the best technology will struggle to deliver real improvements. It’s a classic case of the system being only as strong as its weakest link. What’s striking is how these “minor” administrative issues become major obstacles for both active federal employees and retirees. Imagine waiting for a well-earned retirement benefit, only to be told there’s a holdup because of a document mix-up or a slow name change. These are the kinds of frustrations that don’t make the front page, but they chip away at trust and morale. The GAO’s call for better federal employee administrative support isn’t just about efficiency—it’s about respect for the people who keep our government running. So, what if agencies tackled these everyday processes with the same urgency they bring to passing a funding bill? The impact on morale—and on the bottom line—could be huge. As we look ahead to 2026, the real opportunity isn’t just in flashy new systems, but in fixing the basics. If we get those right, we’ll not only save time and money, but also show federal workers and retirees that their stories, and their headaches, matter. In the end, that’s the kind of progress that lasts.TL;DR: Bottom line: Federal agency funding, pay, union rights, and job security are in major flux for 2025-26. Expect battles over budgets, payraises, and union deals to impact everything from retirement plans to morale. Staying informed and connected has never mattered more for anyone in the federal world.

13 Minutes Read

Aug 16, 2025

When the Rules Change: My Deep Dive into Federal Employment Law Shifts for 2025 (3-9 Aug 2025, Episode 10)

I'll be honest—navigating the world of federal employment law in 2025 feels a lot like running an obstacle course with new hurdles popping up at every turn. Just last week, a friend texted me frantically: 'Is my retirement safe? What’s this about my COVID vaccine record being wiped?'. That got me digging (and doomscrolling) into headlines, legislative memos, union rally livestreams—anything to keep up! In this post, I'll take you with me on this winding path, spotlighting big policy pivots, sweeping legal changes, and the personality-packed drama erupting on Capitol Hill and among feds nationwide. Redacted Records and Power Plays: The Curious Case of OPM's New Personnel File Directive When I first read the new OPM directive issued on August 8, 2025, I had to double-check the date. In a sweeping move, Scott Cooper, the recently appointed director of the Office of Personnel Management (OPM), ordered every federal agency to scrub all records of COVID-19 vaccination status, mandate noncompliance, and exemption requests from federal personnel files. This is not just a tweak—it's a full-scale erasure of pandemic-era documentation, and it marks a dramatic shift in federal employment law updates. Director Cooper’s statement was blunt: “Things got out of hand during the pandemic, and federal workers were fired, punished, or sidelined for simply making a personal medical decision. That should never have happened.” Under this new OPM directive on personnel files, agencies are now prohibited from using any employee’s vaccine history in employment decisions—whether it’s hiring, promotion, discipline, or termination. The message is clear: erase it, or face consequences. Agencies have until September 8, 2025, to certify that every trace of COVID-19 vaccine data is gone from both physical and electronic files. The only exception? Employees have a 90-day window to opt in and keep their vaccine records on file. If they don’t act, those records vanish forever. Protecting Federal Employee Rights: The Congressional Response While the OPM’s move is about erasing the administrative footprint of the pandemic, Congress is now scrambling to address a different problem: access to personnel files. On the heels of the OPM directive, Congresswoman Julia Brownlee (D-CA) introduced the Protecting Federal Employee Rights to Personnel Files Act of 2025 (H.R. 1319). This bill is a direct response to reports from federal workers—especially those who were terminated—about being denied or delayed access to their own records. For many, losing immediate access to their electronic Official Personnel Folder (eOPF) after separation meant losing the documentation needed for taxes, new jobs, or unemployment claims. 7-day rule: Agencies must provide current or separated employees with a copy of their personnel file within 7 days of request or separation. 21-day rule: Former employees separated before the bill’s passage get their files within 21 days of asking OPM. Unions like AFGE, NFFE, NTEU, and AFSCME are backing the bill, highlighting a growing focus on federal employee rights and timely access to critical documentation. As these federal employment law updates unfold, it’s clear that the administrative landscape is shifting fast—what was once required is now being erased, and access to what remains is becoming a new battleground. For federal employees, these changes mean it’s more important than ever to stay informed, act quickly if you want your vaccine records preserved, and know your rights when it comes to accessing your personnel file. The power plays between OPM and Congress are reshaping what it means to be a federal worker in 2025.Probation on the Hot Seat: Trials by Fire for 2025’s New Hires (and Nervous Veterans) When I started digging into the latest federal employment policy changes for 2025, one thing became crystal clear: probationary periods in federal service are no longer a gentle on-ramp—they’re now a high-stakes audition. Thanks to Executive Order 14284, signed on April 24, 2025, and the subsequent OPM guidance dropped on August 7, the rules of the game have shifted dramatically for both new hires and anyone still in their trial period. Probationary Periods: From Safety Net to Stress Test Let’s talk about what’s changed. Under the new policy, probationary periods federal service are officially an extension of the hiring process. As the OPM memo puts it, "Agencies are now directed to use probationary and trial periods as an extension of the hiring process, requiring agency certification for continued federal employment beyond these initial periods." This means that simply making it through your first year isn’t enough. Now, you must actively prove your value to your agency, and the burden of proof for job retention sits squarely on your shoulders. This is a major pivot in key employment law issues—one that puts employees under the microscope like never before. High-Level Scrutiny: Who Decides Your Fate? Another big shift: the people evaluating your probation are no longer your immediate supervisors. The updated guidance requires that evaluations come from at least a second-line supervisor or even a senior executive or political appointee. The idea is to ensure that decisions about who stays and who goes are made with the agency’s broader goals in mind—not just day-to-day performance. Evaluators must be at least second-line supervisors or SES-level officials Certification for continued employment is effective the day it’s signed Applies to all new hires after July 23, 2025, and anyone still in probation Appeals: Fewer Safety Nets, More Anxiety Perhaps the most nerve-wracking change for new and probationary staff is the removal of the Merit Systems Protection Board’s (MSPB) jurisdiction over probation-related appeals. In plain English: if you’re let go during probation, you can’t turn to the MSPB for help. While the OPM director can set up appeal procedures by regulation, the traditional route is now closed. This streamlines terminations and, understandably, raises anxiety among both new hires and veterans still in their trial periods. HR’s New Playbook: Transparency, But Tougher Hurdles Human Resources departments are now required to provide detailed, written notifications to all staff and job candidates about these new hurdles. The intent is transparency, but the effect is clear: the bar for staying on as a federal employee just got higher. Unions have already raised concerns, warning that these workplace policy shifts could make federal jobs less attractive—especially in hard-to-fill roles where job security once helped draw top talent. In short, the policy pivots of 2025 have turned probation into a true “trial by fire.” For anyone entering or still navigating a probationary period, the message is clear: be ready to prove your worth, and know that the rules—and the stakes—have changed.Rallies, Lawsuits, and Defiant Song: Federal Unions Take Center Stage If you want to understand the current state of AFGE union activism and the broader fight for collective bargaining rights in federal employment, look no further than the streets of Washington, D.C. and the halls of our federal courts. The summer of 2025 has become a flashpoint for labor and employment 2025 issues, with union leaders, rank-and-file workers, and their allies taking bold action against what they see as existential threats to their jobs and the public services they provide. Union Leaders Take the Megaphone: “Hands Off Our NASA” On August 4, 2025, I witnessed firsthand the energy and urgency at the “Hands Off Our NASA” rally outside the Smithsonian National Air and Space Museum. AFGE National President Everett Kelly and IFPTE President Matt Biggs stood shoulder to shoulder with federal employees, their voices echoing across the plaza. The message was clear: proposed budget cuts and privatization efforts at NASA represent, in Kelly’s words, “the most dangerous assault on NASA’s mission and workforce in the agency’s history.” While the specifics of the proposed changes were still emerging, the symbolism was powerful. Union members sang, chanted, and held signs defending not just their jobs, but the very mission of NASA. This wasn’t just about paychecks—it was about protecting America’s leadership in space and science. The rally underscored a key employment law issue: when federal policy shifts, unions mobilize quickly, leveraging public protest as a frontline defense. Legal Skirmishes: Collective Bargaining Rights in the Courts The fight isn’t just on the streets. That same day, the Trump administration secured a federal court stay in its ongoing battle with AFGE over collective bargaining restrictions. For many union members, this legal setback was frustrating, but not surprising. Union leaders made it clear: this was just a temporary pause, not the end of the fight. The courtroom has become a second battleground, with unions vowing to challenge any attempt to weaken bargaining rights or sideline their voice in agency decisions. Coordinated Action: SSA Day of Action and USDA Alarm The activism didn’t stop with NASA. On August 14, Social Security Workers United will lead an SSA Day of Action, rallying against new administrative policies that threaten both workers and the millions of Americans who rely on Social Security. Meanwhile, AFGE sounded the alarm over a sweeping USDA reorganization plan, warning that reductions and relocations could jeopardize the nation’s food supply. Here, unions are using strong rhetoric to highlight the public interest stakes, framing these restructures as not just internal shakeups, but as threats to essential services. Legal Victories and the Fight for Civil Rights Amidst these challenges, unions are also celebrating wins. AFGE’s EEO attorneys have secured important victories, defending members’ civil rights and boosting morale in what many describe as a “relentless attack” on federal and DC government workers. These legal successes are more than symbolic—they’re proof that union advocacy can still deliver real protections, even as the landscape shifts. High-profile rallies spotlight union resistance to privatization and budget cuts. Legal battles over collective bargaining rights intensify, with unions undeterred by setbacks. Coordinated actions like the SSA Day of Action amplify worker voices against policy threats. EEO and legal victories serve as crucial morale boosters and reminders of union power. In 2025, as federal employment law and policy shift, union mobilization is intensifying. Protests, lawsuits, and public appeals are all part of a growing movement to defend not just jobs, but the very mission and integrity of public service. Retirement Roulette: Deferred Decisions and the Unfolding FERS Shuffle If you’re a federal employee eyeing retirement in 2025, you’ve probably heard the buzz about the deferred resignation program and the latest FERS retirement system updates. I dove deep into the new federal employment law updates and, honestly, it feels a bit like spinning the roulette wheel—except the stakes are your future benefits. Here’s what I’ve learned about the OPM’s recent clarifications and what they mean for those of us planning our next move. Deferred Resignation Program: Can You Really Have Your Cake and Eat It Too? Let’s start with the big news: OPM has clarified that federal employees can now defer their resignation and still accrue retirement benefits, as long as they become eligible for early or normal retirement before September 30, 2025. This means if you hit your eligibility window during the deferred resignation period, you can both defer your exit and retire on time—something that’s sent a wave of questions through the near-retiree community. Here’s the official word: 'OPM's detailed clarification is crucial to ensure employees make informed decisions preventing unintended consequences for their retirement benefits.' In other words, you don’t have to gamble with your benefits—if you plan carefully and meet the eligibility criteria, you can maximize your accruals and still walk out the door when you’re ready. How the Deferred Resignation Program Works Eligibility: You must be eligible for early or normal retirement before September 30, 2025. Benefit Accrual: You continue to accrue retirement benefits during the deferred resignation period. Flexibility: You can retire at any point during the deferred period if you meet the criteria. It’s a strategic lever for both employees and agencies. For workers, it’s a chance to fine-tune your exit and optimize your benefits. For agencies, it helps manage workforce transitions and potentially reduce personnel costs through voluntary separations. FERS Retirement System Updates: COLA, Annuity, and Eligibility Tweaks But the deferred resignation program isn’t the only change on the horizon. The FERS retirement system updates announced in August 2025 are set to ripple through retiree finances and federal workforce planning. Here’s what’s coming: Cost-of-Living Adjustments (COLA): Expect increases that better reflect current economic realities, aiming to keep retiree purchasing power in check with inflation. Annuity Calculation Changes: Revised formulas may impact the final payout, so it’s crucial to review your projected benefits under the new rules. Eligibility Rules: Adjustments to retirement age and service requirements are designed to align with broader economic forces and workforce needs. These updates are more than just bureaucratic fine print—they directly affect your retirement timing and financial security. With the deferred resignation program and FERS tweaks working together, the landscape is shifting fast. For those of us nearing retirement, understanding these nuances is vital for strategic planning. The choices you make now could determine whether you land on red or black when it comes to your future benefits.Wild Card Files: Policy Whirlwinds and My (Admittedly Tangential) Thoughts If you told me a few years ago that I’d be drawing parallels between banana-bread recipes and federal retirement policies, I’d have laughed you out of the break room. Yet here we are. After reading about pandemic-era record purges, I half-expected a government-wide memo reminding us to back up our family heirloom recipes—just in case. It’s a strange time to be following workplace law updates, but maybe that’s the new normal in the world of federal employment law changes. Of all the changes swirling around, perhaps the weirdest is just how quickly the “rules of the road” can flip overnight. One week, we’re debating which COVID records to keep; the next, we’re watching courts weigh in on executive orders that could reshape the influence of federal employee unions. The only real constant is chaos. Sometimes, I wonder if the federal government should just rebrand HR as “High Stakes Roulette”—because at this rate, that’s what it feels like. These policy pivots aren’t just abstract headlines. They induce real decision fatigue for employees and retirees alike. One day, your appeal rights look solid; the next, a new ruling or executive order throws everything into question. Shifts in file management, union presence, and even the structure of the civil service can shake your day-to-day confidence at work. The pandemic blurred the lines between personal and professional lives, and now, the aftershocks continue to ripple through every aspect of federal employment. It’s not just about what files you keep or which forms you fill out—it’s about how you plan your future when the ground keeps moving beneath your feet. What’s become clear to me is that adaptability matters just as much as legal knowledge. Sure, you can memorize the latest key employment law issues, but if you can’t pivot when the next policy whirlwind hits, you’re in for a rough ride. Self-advocacy helps, too. Sometimes, all you can do is laugh at the absurdity—like when you realize your retirement paperwork is now subject to the same “temporary” rules as your pandemic grocery lists. Humor isn’t just a coping mechanism; it’s a survival skill in this environment. So, what’s the takeaway from this week’s wild card files? The landscape for federal employees and retirees is constantly shifting, with major decisions being made about everything from pay and job security to retirement benefits and the very structure of the civil service. As I wrap up this deep dive into the latest federal employment law changes for 2025, I keep coming back to one simple truth: “Staying informed is your best tool.” Whether you’re tracking the next executive order or just trying to keep your files straight, knowledge—and a little bit of humor—will help you weather the policy storms ahead. Until next time, keep your banana-bread recipes (and your retirement plans) somewhere safe. You never know when you’ll need them both.TL;DR: If you’ve felt whiplash from the latest changes in federal employment policy, you’re not alone. From deleted vaccine records to union protests and retirement shakeups, every federal employee (and retiree) needs to watch the evolving rules, advocacy battles, and what they mean for your job—and your peace of mind.

14 Minutes Read

Aug 9, 2025

Beyond the Headlines: What’s Really Shifting for Federal Employees and Retirees in 2025? (27 Jul - 2 Aug 2025, Episode 9)

Back when I first started working with federal employees, a mentor once told me: 'This job is paperwork and patience. Mostly patience.' It’s 2025, and that advice feels truer than ever—not just for those in federal offices, but for anyone trying to decipher which piece of breaking news will actually land in their benefits statement. From eyebrow-raising executive orders to spontaneous Senate reversals, this week’s developments might read like political theater, but the impact on your paycheck, health coverage, and future is anything but fiction. Pour yourself some coffee—let’s untangle what really matters, and why even the uneventful weeks can hint at seismic change. Plot Twist: Proposed Federal Employee Benefit Cuts—Dodged, for Now If you’re like me, you’ve probably been watching the headlines about Federal Employee Benefit Cuts with a mix of anxiety and frustration. For months, the possibility of losing the FERS Annuity Supplement or seeing our pension calculations shift from ‘high-3’ to ‘high-5’ years felt all too real. The House version of H.R. 1 and the so-called Big Beautiful Bill Act both threatened deep cuts to Federal Retirement Benefits, including increased pension contributions and sweeping changes to the Federal Employees Health Benefits Program (FEHB). But in a dramatic turn, the Senate-passed H.R. 1 in 2025 removed all federal employee benefit cuts and workforce provisions originally proposed in the House bill, providing relief to federal employees and retirees. Let’s break down what happened: Senate Scraps the Cuts: Proposals to eliminate the FERS Annuity Supplement and change pension calculations to a ‘high-5’ formula were dropped during Senate reconciliation. This means retirees and those nearing retirement can breathe easier—at least for now. FEHB Stability for 2025: Despite all the noise, the Federal Employees Health Benefits Program remains steady. For 2025, there are 42 FEHB carriers, 64 plans, and a whopping 130 FEHB plan options. Postal Service Health Benefits (PSHB) participants also have 69 plan options. That’s a lot of choice and, more importantly, no major disruption. Big Beautiful Bill Act—Tamed: The original bill included some harsh proposals: higher pension contributions, reduced benefits, and more. Thankfully, the Senate stripped out these provisions, sparing federal employees and retirees from immediate financial pain. But here’s the catch—while these massive Federal Employee Benefit Cuts didn’t make it into law this time, the anxiety isn’t gone. Many of these proposals have a way of resurfacing, sometimes with just enough tweaks to fly under the radar. The sense of relief is real, but so is the lingering uncertainty about what might come next. The Senate-passed H.R. 1 in 2025 removed all federal employee benefit cuts and workforce provisions originally proposed in the House bill, providing relief to federal employees and retirees. For now, the 2025 FEHB program offers stability and choice, and the FERS Annuity Supplement survives another year. It’s a win, but as always, staying informed and engaged is key as the landscape for Federal Retirement Benefits continues to shift.Battling Bureaucracy: How Executive Orders Are Reshaping Agency Life When we talk about Federal Workforce Provisions and what’s really changing for federal employees in 2025, it’s impossible to ignore the outsized role of Executive Orders. This year, Executive Orders 2025 are doing more than just making headlines—they’re fundamentally shifting how agencies approach technology, workplace rights, and even day-to-day decision-making. The most striking example? Executive Order 14319, issued July 23, 2025, known as “Preventing Woke AI.” This order is a game-changer for AI in Government. It mandates that all federal agencies can only procure large language models (LLMs) if they meet two new standards: truth seeking and ideological neutrality. As the order itself puts it: This executive order imposes stringent new criteria on the acquisition and utilization of AI technologies across the federal government. On paper, these sound like reasonable goals. But in practice, it means federal IT and procurement professionals are suddenly thrust into a much more politically charged process. Now, every AI tool must be vetted not just for technical capability, but for compliance with these new, somewhat subjective principles. The Office of Management and Budget (OMB) is racing to issue guidance by November 20, 2025, but until then, agencies are left navigating a maze of uncertainty. Red tape and delays: Expect slower adoption of new AI tools as agencies work through extra layers of review and documentation. Vendor headaches: Many AI vendors may not be able—or willing—to certify their products as “ideologically neutral,” shrinking the pool of available solutions. Brain drain risk: As the process grows more politicized, federal tech talent may look to the private sector, where innovation often moves faster and with fewer political strings attached. Meanwhile, as rights and rules shift, the Office of Personnel Management (OPM) issued a memo on July 28, 2025, reaffirming Federal Employee Rights—specifically, the right to religious expression at work. While other workplace norms are in flux, this OPM Guidance offers a rare point of stability. What’s clear is that executive interventions are now shaping agency tech and HR strategy as much as legislation. For those of us in the federal workforce, the landscape is more complex—and more political—than ever before.The Telework Tango: New Bills and the War Over Workplace Flexibility If you’re a federal employee who’s embraced remote work, the latest developments on Capitol Hill might feel like a step backward. The Federal Employee Return to Work Act (S. 27), introduced on January 7, 2025, by Senator Bill Cassidy (R-LA), is making waves—and not the kind that favor telework flexibility. This bill is still in committee, but its core message is clear: the era of pandemic-inspired telework could soon face a dramatic pay reset. Here’s the heart of the proposal: If you telework at least one day a week (or 20% of your schedule under alternative work arrangements), you’d lose your locality-based pay increase. Instead, you’d be paid at the “rest of US” locality rate, no matter where you actually live or work. For those in high-cost cities like Washington, D.C., San Francisco, or New York, these Telework Pay Changes could mean a significant pay cut—potentially thousands of dollars a year. Who’s affected? Any federal employee teleworking 20% or more per week. When would it start? The first fiscal year after the bill is enacted. What’s the goal? To “financially disincentivize remote work and compel a return to traditional office settings.” This isn’t just about where you work—it’s about how the government values flexibility versus tradition. The bill is positioned as a cost-control measure, aiming to rein in Federal Employee Benefits by limiting higher locality pay for those not physically present in expensive cities. But it’s also a culture shift, a clear pushback against the remote work explosion of the pandemic era. As one summary puts it: By targeting pay increases for teleworking employees, the bill aims to financially disincentivize remote work and compel a return to traditional office settings. For many, this feels like a forced choice: return to the office or accept a pay cut. Some see it as a necessary correction, while others worry about the impact on Federal Workforce Provisions—especially recruitment and retention. High-skilled workers who value flexibility may look elsewhere, potentially making the federal workforce less diverse, innovative, or competitive. The Federal Employee Return to Work Act is just one front in the ongoing war over workplace flexibility. As the legislative and executive branches align to reduce telework, the future of federal remote work—and the pay that comes with it—hangs in the balance.Attrition by Design: Hiring Freezes, Reductions in Force, and Backlog Blues If you’re a federal employee or retiree, the summer of 2025 has likely felt like a turning point. On July 8, President Trump signed a memorandum that, for all practical purposes, put the brakes on most new federal civilian hiring until October 15, 2025. This directive, while not labeled a formal “Hiring Freeze 2025,” has the same chilling effect—no vacant federal civilian position may be filled, and no new positions created, unless specifically allowed by law or the memo itself. For agencies already stretched thin, this is attrition by design. The Office of Personnel Management’s (OPM) new merit hiring plan, released May 29, 2025, is supposed to ensure that any allowed appointments are based on merit and accountability. In theory, this could strengthen the federal workforce. But in practice, the restrictions are biting hard. Agencies with high turnover, like IRS customer service, are especially feeling the pinch. The combined effect of a de facto hiring freeze and ongoing reductions in force will undoubtedly place significant operational strain on federal agencies. Federal Workforce Provisions now mean that even as retirements and resignations continue, replacements are rare. This slow bleed accelerates downsizing through attrition, not layoffs. Reductions in Force (RIFs) may still occur, but with hiring paused, the workforce shrinks even faster—and not always in a strategic way. Backlog Blues are becoming the new normal. Fewer hands on deck means slower processing times, longer waits for public services, and mounting frustration for both staff and the public. Supporters argue these Federal Workforce Provisions and merit-based reforms will boost efficiency and accountability. But as someone watching the day-to-day reality, I see a different story unfolding. Morale is dipping, especially among career staff who shoulder heavier workloads with no relief in sight. The IRS and other high-attrition agencies are already warning of service delays and unmet public needs. The combined effect of a de facto hiring freeze and ongoing reductions in force will undoubtedly place significant operational strain on federal agencies. Is this a recipe for efficiency, or for burnout and breakdown? The intention may be to streamline government, but the operational impact is clear: delays, backlogs, and a growing sense of uncertainty about the future of Federal Employee Benefits and public service delivery. For many, the headlines don’t capture the daily grind of trying to do more with less.The Quiet Before the Storm? Why Retirees Should Still Watch the Radar If you’re a retired federal employee, you might be feeling a rare sense of calm right now. There’s no breaking news about Federal Retirement Benefits being slashed, and Congress hasn’t introduced any new legislation directly targeting your pension or health coverage this week. In fact, as one recent analysis put it, “While the current federal workforce faces significant upheaval... retired federal employees appear to be in a period of relative stability regarding their direct benefits.” But as we all know, stability in Washington can be fleeting—especially when it comes to federal employee benefit cuts. Here’s why I’m still keeping a close eye on the horizon: No Direct Hits—But Indirect Risks Remain: While your core retirement benefits are untouched for now, broader policy moves could still impact you or your family. Proposed changes to Medicaid Coverage 2025 and the Affordable Care Act (ACA) are circulating in Congress. If you or a loved one relies on these programs for supplemental health care, even small tweaks could have ripple effects on your out-of-pocket costs or coverage options. Congress’s Appetite for Amendments: It’s not unusual for last-minute amendments to sneak into larger spending bills. Sometimes, benefit cuts or eligibility changes are buried in the fine print. History shows that what starts as a “quiet” period can quickly shift if budget battles heat up or lawmakers look for savings. Economic and Budget Pressures: The broader economic landscape is always shifting. Rising healthcare costs, inflation, and ongoing debates about the federal budget mean that those of us on fixed incomes—or who rely on federal health programs—can’t afford to tune out. Even if there are no new direct threats to our benefits today, tomorrow’s headlines could be very different. So, what’s the bottom line? While there’s no immediate cause for alarm about Federal Retirement Benefits, the indirect effects of Medicaid Coverage 2025 and ACA Changes could still touch retiree households. I recommend staying informed, reading the fine print, and being ready to advocate if you see signs of federal employee benefit cuts resurfacing. In this policy climate, vigilance is our best defense—even when things seem quiet on the surface.Quick Shout-Out: Integrity Gets Its Day (Thank a Whistleblower!) As we navigate the many changes coming for federal employees and retirees in 2025, it’s easy to get caught up in the headlines about shifting Federal Employee Benefits, pay structures, and workforce reductions. But in the midst of all this policy turbulence, something remarkable happened: the IRS Whistleblower Office stepped forward to publicly celebrate National Whistleblower Appreciation Day on July 28, 2025. It’s a rare, positive spotlight on the values that often get lost in the shuffle—integrity, courage, and accountability in government. This recognition isn’t just a ceremonial nod. By honoring whistleblowers, the IRS and the broader federal system are sending a clear message: ethical behavior and the reporting of wrongdoing matter. As one observer put it, “By celebrating whistleblowers, the government implicitly encourages ethical behavior and the reporting of wrongdoing, which can be seen as a counternarrative to the broader focus on workforce reductions and increased executive control.” In a year when so much attention is focused on cost-cutting and restructuring, this public appreciation for whistleblowers stands out. It’s a reminder that Whistleblower Protection isn’t just a legal checkbox—it’s a living principle that supports transparency and public trust, especially when morale and job security are under pressure. The IRS Whistleblower Office’s event highlighted real contributions from employees who spoke up, reinforcing the idea that integrity and ethics remain valued—even as practical pressures on federal staff rise. Why does this matter now? Because as the federal workforce faces tough choices—like relocating due to pay adjustments or adapting to new roles—knowing that ethical courage is recognized can make a real difference. It signals that, even as the machinery of governance is retooled, the core mission of public service endures. The celebration of National Whistleblower Appreciation Day isn’t just symbolic; it’s a reaffirmation of the government’s commitment to Accountability in Government and the protection of those who defend it from within. So, as we look beyond the headlines and grapple with what’s really shifting for federal employees and retirees in 2025, let’s take a moment to thank a whistleblower. Their willingness to stand up for what’s right helps safeguard the integrity of our public institutions—no matter how much else changes around them.TL;DR: Federal employee and retiree benefits faced major proposed overhauls in 2025, but sweeping cuts were mostly blocked or delayed. However, shifting rules, new executive orders, and compensation uncertainties continue to shape the landscape. Stay vigilant: The only constant may be change itself.

13 Minutes Read

Aug 9, 2025

Federal Employee Benefits 2025: Navigating Change, Uncertainty, and Opportunity (20-26 Jul 2025, Episode 8)

I still remember the day I overheard two colleagues at the cafeteria hastily calculating years to retirement—one half-joking, one dead serious. It was July, peak rumor season in D.C., and no one knew if their cherished benefits would survive. Fast forward to this summer, and we’re living through the most volatile era in federal benefits history: threats of cuts, dramatic retirements, Supreme Court curveballs, and Congress giving with one hand while yanking with the other. If you’ve ever felt that retirement planning now requires both a spreadsheet and a crystal ball, you’ll find some hard-earned wisdom (and maybe a little reassurance) in what follows. 1. The Great Retirement Rush: When Fear Becomes Policy If you’ve worked in federal service for any length of time, you know that rumors about benefit changes can spread like wildfire. But in early 2025, those rumors became something much bigger—a real, measurable force that sent shockwaves through the federal workforce. The mere threat of FERS annuity supplement elimination and changes to the annuity calculation formula triggered a mass exodus, and the numbers tell the story. Retirement Applications Surge: The Power of Uncertainty According to the Office of Personnel Management (OPM), 70,351 retirement applications were filed between January and June 2025. That’s a nearly 24% increase compared to the 50,305 applications during the same period in 2024. This wasn’t just a blip—it was a tidal wave of retirements, and it all came down to fear. As soon as proposals to eliminate the FERS annuity supplement and change the annuity calculation from a “high-3” to a “high-5” average salary began circulating in Congress, federal employees started making moves to protect their hard-earned benefits. “The uncertainty drove a significant number of retirement eligible employees to leave federal service prematurely.” Why the FERS Annuity Supplement Matters For many federal employees, the FERS annuity supplement is a lifeline. It’s designed to bridge the income gap for those who retire before age 62, helping them manage until they become eligible for Social Security. The proposed elimination of this supplement would have created a real hardship for federal employee early retirees, leaving them with a significant income gap during those critical years. Even though the final bill stripped out the most severe cuts, the damage was already done—thousands rushed to retire before the rules could change. Policy Proposals as Psychological Triggers What happened in 2025 is a textbook example of how policy proposals—even those that don’t become law—can drive massive real-world behavior. The administration’s stated goal was to shrink the federal bureaucracy. By allowing deep cuts to federal employee retirement benefits to advance through early legislative stages, they created an environment of anxiety and uncertainty. This, in turn, became a powerful tool for workforce management. Rumored benefit cuts led to a surge in retirements—over 70,000 in just six months. Many employees panicked and left early, while others saw an opportunity to lock in current benefits. The threat of FERS annuity supplement elimination was the key driver for early retirements. Even though the high-3 annuity calculation and FERS supplement survived, the psychological impact was profound. This episode shows how the mere suggestion of benefit changes can become policy in practice, as employees rush to secure their futures before the rules shift. The federal employee retirement application surge of 2025 will be remembered as a case study in how fear, not just legislation, can shape the workforce. 2. The Bill That Was (and Wasn’t): What Survived the Capitol Hill Showdown After months of heated debate and widespread anxiety, the House reconciliation bill—officially known as HR 1, the One Big Beautiful Bill Act—finally became law on July 4, 2025. For those of us in the federal community, this was the most significant event of the year. There’s no denying the sense of relief that swept through federal offices and retiree circles when President Trump signed the bill and we learned that the most feared federal budget cuts 2025 had been stripped from the final version. “For both current and retired federal employees, the primary takeaway is one of relief. The most feared proposals...were ultimately excluded from the final legislation.” What Didn’t Make the Cut: Retirement Fears Eased (For Now) Let’s start with what didn’t happen. The House Oversight and Reform Committee had advanced proposals to change the federal annuity calculation from the “high-three” to a “high-five” formula and to eliminate the FERS annuity supplement. Both would have been devastating for retirement planning. Thankfully, these provisions were deleted before the bill passed. The FERS supplement, which bridges income for those retiring before age 62, and the high-three calculation remain untouched—for now. This means the foundational elements of federal employee pay and benefits survived the Capitol Hill showdown. But the threat alone had a real impact. According to OPM, over 70,000 retirement applications were filed by June 2025—a 24% jump from the previous year. The uncertainty around federal employee health care costs and retirement benefits drove many to retire early, locking in current rules before any changes could take effect. This “fear factor” became a subtle but effective way to reduce the federal workforce, as many left without the government having to enact the harshest cuts. What Survived: Sweeteners for Employees and Retirees Permanent Student Loan Repayment Assistance: Federal agencies can now provide up to $5,250 per year in tax-free student loan repayment support—no expiration date. This is a game-changer for current employees managing educational debt. Higher Dependent Care Assistance: The annual pre-tax contribution limit for dependent care programs jumps from $5,000 to $7,500, offering real tax relief for families. Broad Tax Relief: Many 2017 tax cuts are now permanent, including lower income tax rates and a doubled standard deduction. There’s also a new $6,000 senior deduction on Social Security benefits, helping retirees keep more of what they’ve earned. The Sharp Side: Cuts and Costs Of course, these sweeteners come with a sharp edge. The law includes a 2.5% Medicare fee increase for doctors in FY 2026, and domestic programs like SNAP face cuts. There’s also a massive $170 billion boost for border security and immigration enforcement. And while the House and Senate budget resolutions aimed for $50 billion in federal budget cuts 2025—including potential shifts to a voucher system for Federal Employees Health Benefits (FEHB) plans—these specific health care cost changes didn’t make it into HR 1. Still, the conversation around federal employee health care costs is far from over.3. Reduction-in-Force: Not Just Bureaucracy—Real People, Real Consequences When I think about federal employee pay and benefits, I always picture stability—a job where you can plan for the future. But July 8, 2025, changed everything. That’s when the Supreme Court handed down a decision that gave the administration free rein to carry out mass layoffs across the federal workforce. For decades, federal job protections were seen as almost untouchable. Overnight, that precedent was erased, and the reality of federal budget cuts 2025 became painfully clear for thousands of public servants. Historic Ruling, Immediate Impact Within weeks of the Supreme Court’s decision, the administration moved quickly. On July 24, a court filing revealed a detailed list of hundreds of offices across 17 federal agencies targeted for reduction-in-force (RIF). This wasn’t just about trimming “bloat” or cutting costs. The list included some of the most critical—and perhaps unexpected—targets: policy, oversight, and scientific divisions. Agencies like the Department of Commerce, the National Archives and Records Administration (NARA), and the Department of Agriculture (including food safety and forest service research) were all on the chopping block. Even the Centers for Disease Control and Prevention (CDC) and the IRS’s Taxpayer Advocate Service were not spared. More Than Budget Trimming It’s tempting to see these RIFs as just another round of federal employee pay cuts or a response to budget pressures. But a closer look at the targeted offices tells a different story. The cuts hit hardest in areas responsible for: Internal agency oversight (HR, general counsel, equal opportunity) Scientific research and evidence-based policy (Natural Resources Conservation Service’s Climate Division, Center for Nutrition Policy and Promotion) Independent taxpayer advocacy and public health These aren’t the largest or most expensive parts of government. They’re the ones that ensure accountability, enforce rules, and provide the data that shapes smart policy. As one observer put it: Targeting them suggests an ideological strategy aimed at weakening the government's regulatory and scientific capacity. The Human Cost: Uncertainty and Loss Behind every RIF notice is a real person—someone who dedicated their career to public service. The emotional toll has been immense. Many employees left their jobs before ever finding clarity or closure, unable to wait out the uncertainty. Federal employee unions have raised alarms about the impact on workforce retention and the quality of service delivery. It’s not just about paychecks; it’s about the loss of expertise, institutional memory, and the ability to serve the public effectively. Redefining What—and Who—Matters This wave of RIFs isn’t just a bureaucratic exercise. It’s a statement about what the government values—and who it chooses to keep. As we navigate these federal employee legislation updates, it’s clear that the consequences go far beyond numbers on a spreadsheet. The effects will be felt in every corner of the country, by every American who relies on the work these employees do.4. Wildcards in Workforce Policy: From ‘Schedule F’ to ‘Telework Penalties’ As a federal employee, I’ve never seen a year quite like 2025. The landscape is shifting under our feet, with executive orders and Congressional bills creating new categories, new risks, and new questions about our future. If you’re trying to make sense of federal employee union rights, the deferred resignation program, Voluntary Early Retirement Authority, and looming federal employee pay cuts, you’re not alone. Let’s break down the wildcards that are reshaping federal employee retirement planning and day-to-day work. Schedule F, Schedule G, and the Erosion of Protections In January, the administration revived Schedule F, and by July, Schedule G was born. These new workforce categories strip away many traditional civil service protections, making it easier to hire and fire employees—especially those in policy-making or confidential roles. The number of political appointees has quietly expanded, and the lines between career and political staff are blurrier than ever. Federal employee union rights are under pressure, as these categories often fall outside collective bargaining agreements. Probationary Employees: Faster Firings, Less Security February’s OPM directive put probationary employees on notice: the path to a permanent job just got steeper. Agencies can now terminate new hires much more quickly, with less documentation and fewer appeals. This “quick-firing” culture is spreading anxiety, especially for those just starting their federal careers. Deferred Resignation, VERA, and VSEAP: The Exit Ramp In January, the “fork in the road” memo introduced a deferred resignation program—and about 75,000 employees took the offer. The Department of Defense followed up in April with Voluntary Early Retirement Authority (VERA) and Voluntary Separation Incentive Payment (VSEAP) options. These programs are reshaping federal employee retirement planning, giving those close to retirement a way out amid the uncertainty. Congressional Wildcards: Firefighters, Telework, and Pay Cuts Federal Firefighters Families First Act (HR 759): This bill, with strong bipartisan support, would cap the max workweek for federal firefighters at 60 hours (down from 72) and ensure all overtime counts toward retirement pensions. This is a big win for recruitment, retention, and work-life balance in a high-stress field. Federal Employee Return to Work Act (HR 236): This bill targets telework. If you telework even one day a week, you’d lose both your annual and locality pay raises. For many, this is a de facto federal employee pay cut and a strong push to return to the office. Federal Employee Performance and Accountability Act (HR 21): For GS-11 and above, this pilot would tie pay directly to performance reviews. Exceed expectations? Up to a 10% raise. Meet them? No raise. Fall short? Your pay could drop by 10%. This high-risk, high-reward model is a dramatic shift from the current system. “These executive actions and legislative proposals represent a coordinated two pronged effort to reshape the federal workforce.” With contradictory policies and a patchwork of new rules, confusion and stress are running high. Federal employee unions warn that these changes could hurt retention and service delivery. For now, we’re all watching and waiting to see which wildcards become the new normal.5. Resilience (and Surprises): What This All Means for Retirement Security If there’s one thing I’ve learned from following federal employee retirement planning news this year, it’s that resilience is the name of the game. The past few months have been a wild ride for federal employees and retirees. We watched as Congress debated sweeping changes to our core retirement benefits, including the high-three salary calculation and the FERS annuity supplement for early retirees. When the final version of HR One—the so-called “one big beautiful bill”—was signed into law, it left our foundational benefits intact. For now, the high-three calculation and FERS supplement survived the legislative storm. That’s a huge relief, but it’s also a wake-up call. The surge in federal employee retirement applications—up 24% in just a few months—was driven by fear, not facts. Many colleagues rushed to retire early, worried about FERS annuity supplement changes or cuts that never actually happened. As a result, some are now facing smaller pensions, reduced Thrift Savings Plan balances, and a longer retirement horizon to fund. The events leading up to the bill’s passage offer a powerful lesson in financial planning: making irreversible decisions based on rumors or early legislative drafts can backfire, leaving big financial gaps that are hard to fill later. What stands out most to me is just how uniquely stable federal employee retirement benefits remain, even in the face of political volatility. While the private sector has overwhelmingly shifted to defined contribution plans like 401(k)s—putting all the risk on employees—the federal system still offers a defined benefit pension. That’s a rarity these days, and it’s something worth protecting. The fact that our benefits survived a major legislative push from a determined administration shows their political durability, even as they remain a perennial target. But let’s not kid ourselves: the federal employee retirement system will continue to face significant legislative changes between now and 2028. Retirement security for federal employees is intertwined with the ongoing political tug-of-war in Washington. That’s why it’s more important than ever to tune out the noise and focus on facts. Social media speculation and rumor mills can lead to panic and poor decisions. Instead, I rely on official sources like OPM, my agency’s HR office, and reputable federal news outlets to get the real story about my benefits. The big takeaway for me—and for anyone thinking about retirement—is simple: there are no magic bullets. The core of federal employee retirement planning is strategic, fact-based decision-making. Double-check your long-term plan, understand your survivor benefits, evaluate your FEGLI and long-term care needs, and remember that even a stable pension isn’t entirely inflation-proof. The resilience of our benefits is real, but so is the need for vigilance. In the end, the best defense against surprises is a well-informed, carefully considered retirement strategy—one that’s built to weather whatever storms may come. TL;DR: Despite major policy twists, core federal retirement benefits—like the high-three annuity and FERS supplement—escaped the chopping block. Still, with ongoing legislative pressure and big changes in workforce rules, federal employees and retirees should stay vigilant, plan smart, and keep a close eye on trusted updates. Hang onto your hat; it’s only getting more unpredictable from here.

13 Minutes Read

Aug 9, 2025

Weathering the Storm: A Candid Guide for Federal Employees and Retirees Facing 2026 Turbulence (13-19 Jul 2025, Episode 7)

When I first joined the federal workforce, I remember thinking my career (and retirement) would run on rails: steady paychecks, predictable raises, benefits so solid you could almost set your watch to them. Right? If only. Fast forward to July 2025 and, let me tell you, that sense of security feels quaint. This past week’s developments have most of us—on both sides of retirement—feeling the floor shift. Between COLA projections that barely outpace your grocery bill and new executive orders redefining what job security means, I’m here to break down what’s fact, what’s fear-mongering, and how we might muddle through anyway. (Plus: a confession about the worst financial mistake I made post-retirement.) 1. The Cost of Living Mirage: Why COLA Won’t Save You This Year Every year, federal employees and retirees look forward to the Cost of Living Adjustment (COLA) as a lifeline—an annual boost meant to keep our retirement income in step with rising prices. But if you’re hoping the 2026 COLA will shield you from the storm of inflation and health care costs, it’s time for a reality check. The numbers just don’t add up, and I’ve learned this the hard way. 2026 COLA Forecast: Modest Gains, Major Setbacks Based on the latest Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) data, the 2026 COLA is projected to land between 2.3% and 2.7% for Civil Service Retirement System (CSRS) annuitants. The National Association of Letter Carriers and the Senior Citizens League both echo these estimates, pointing to persistent inflation and new tariffs as driving forces. But here’s the catch: for those of us under the Federal Employees Retirement System (FERS), the so-called “diet COLA” formula means we’re looking at a flat 2.0% increase, no matter what inflation actually does. The FERS ‘Diet COLA’ Dilemma FERS retirees are especially vulnerable. The FERS COLA cap was designed for a different era, and now it’s leaving us exposed just when inflation is biting hardest. If the CPI-W increase falls between 2% and 3%, FERS retirees get only 2%. If it’s over 3%, we lose a full percentage point. That’s less protection when we need it most, and it’s a formula that’s quickly eroding our purchasing power. Medicare Part B Premium Increase: The Real Budget Buster Even more alarming is the projected 11.6% jump in Medicare Part B premiums for 2026. According to the latest Medicare Trustees report, the standard monthly premium is expected to leap from $185 to $206.50—a $21.50 monthly increase, the biggest since 2022. For many federal retirees, this single expense will swallow up most, if not all, of the COLA increase. “The financial forecast for twenty twenty six presents a challenging picture for the federal community where anticipated benefit adjustments are on a collision course with escalating health care costs.” My Wake-Up Call: When COLA Isn’t Enough I’ll never forget my first year in retirement. I was excited to see my first COLA, expecting a little extra breathing room. But when my Medicare bill arrived—with its own hefty increase—it wiped out my COLA almost to the dollar. It was a sobering moment, and it’s a scenario that’s about to become the norm for many of us in 2026. 2026 COLA: 2.3%-2.7% (CSRS), 2% (FERS) Medicare Part B Premium: $206.50/month (up from $185) Premium Jump: $21.50 monthly, the largest since 2022 The bottom line: modest COLA increases are being outpaced by soaring health care costs and relentless inflation, especially for FERS retirees. The Cost of Living Adjustment is starting to look more like a mirage than a solution.2. The Ground Moves Beneath: Job Security, Layoffs, and the Disappearing ‘Career’ If you’re a federal employee, you’ve probably felt the tremors of change shaking the ground beneath your feet. This past week, the very idea of a stable, lifelong federal career was upended, as a series of legal and executive moves made it easier than ever for agencies to cut jobs—and for political winds to reshape the workforce. Let’s break down what’s happening, and what it means for all of us. Supreme Court Clears the Way for Federal Employee Layoffs and Reductions On July 8th, 2025, the Supreme Court delivered a decision that changed everything: it struck down a lower court injunction, giving the executive branch the green light to move forward with mass layoffs, or Reductions in Force (RIFs). Overnight, the long-held belief that federal jobs were secure—protected by layers of civil service rules—was shattered. Agencies that had been waiting on the sidelines wasted no time. The Department of Education, for example, immediately began cutting about 1,300 jobs, roughly one-third of its workforce. The State Department issued more than 1,300 termination notices. And the IRS? They’re targeting a 20-50% reduction, with 6,000 to 7,000 layoffs already underway. Schedule G and the End of Traditional Civil Service Protections But the changes didn’t stop there. On July 17th, the administration introduced Schedule G, a new category of federal employment for policy-making and policy-advocating roles. Here’s the kicker: Schedule G jobs are at-will. That means employees can be dismissed at any time, for any reason, without the usual civil service protections. As one legal expert put it: “This at will employment argument seeks to dismantle decades of precedent and federal law, most notably, the Civil Service Reform Act of nineteen seventy eight, which requires that agencies provide cause, notice, and an opportunity for employees to respond before a termination can take place.” This move isn’t random. It’s a coordinated effort to give the executive branch more control over the federal workforce, making it easier to replace career professionals with political appointees. Federal Workforce Changes: RIFs, Buyouts, and the Human Toll With legal barriers gone, agencies are accelerating workforce reductions. The IRS is not just laying off thousands—they’re also offering Voluntary Early Retirement Authority (VERA) and Voluntary Separation Incentive Payments (VSIP) to encourage employees to leave. Some agencies, like the Social Security Administration and Department of the Interior, are offering up to $25,000 as a buyout. But as I learned coaching my neighbor through a VERA/VSIP buyout, the reality can be sobering. We joked about finally starting that food truck together—until her severance barely covered a year’s worth of health insurance. Department of Education: Cutting 1,300 jobs (~33% of staff) State Department: Over 1,300 termination notices issued IRS: 6,000-7,000 layoffs, aiming for 20-50% headcount reduction VERA/VSIP: Buyouts up to $25,000 offered in some agencies The bottom line? Federal employee layoffs and reductions are no longer just a budget rumor—they’re a new reality. The old promise of a secure, apolitical federal career is disappearing, replaced by uncertainty and tough choices. 3. The False Comforts of a ‘Big Beautiful Bill’: Tax Credits and What They Really Mean for Retirees When the One Big Beautiful Bill Act (OBBBA) was signed into law, headlines everywhere touted its generous new tax credits for seniors—up to $6,000 for single filers and $12,000 for couples under certain income thresholds. On paper, this sounded like a game-changer for financial planning for federal retirees. But as I learned firsthand, the reality is far more complicated—and, for many, less comforting than advertised. Who Actually Benefits from the OBBBA Tax Credit? The OBBBA tax credit is designed to help middle-income seniors: $6,000 for single filers with incomes under $75,000, and $12,000 for married couples under $150,000. But there’s a crucial catch—you only benefit if you actually owe federal tax on your Social Security benefits or other retirement income. Here’s the kicker: about 50% of seniors don’t owe any federal tax on their Social Security benefits. This means that many of the lowest income annuitants—those who arguably need relief the most—are excluded from the credit entirely. As one analyst put it: “While this could provide a meaningful offset for many middle income retirees, it is important to note that an estimated half of all seniors do not have a federal tax liability on their Social Security benefits, meaning many of the lowest income annuitants will not benefit from this provision.” Tax Credits vs. Rising Costs: The Real Math For those who do qualify, the One Big Beautiful Bill Act Tax Credit can certainly soften the blow of rising expenses. But it’s not a cure-all. With Medicare Part B premiums projected to jump 11.6% in 2026 and FEHB premiums likely to rise again, even a $6,000 or $12,000 credit may not keep you ahead. For example, my own first year of retirement brought a rude awakening: I fired up my tax software, excited to see the “windfall” from the new credit—only to realize my FEHB premium had quietly jumped by hundreds of dollars. The net gain? Far less than I’d hoped. Single filers under $75,000: $6,000 credit—if you owe tax Married couples under $150,000: $12,000 credit—if you owe tax Estimated 50% of seniors: No benefit due to zero tax owed Don’t Count Your Bill Before It’s Cashed The One Big Beautiful Bill Act passed without cutting federal employee retirement benefits, but it also skipped a 2026 pay raise—raising the odds of a pay freeze for current workers. For retirees, the “big beautiful” tax credit is only as good as your tax liability. Many of my friends—especially those living on modest annuities—won’t see a dime. The shiny headline numbers can obscure the reality: tax credits for retirees sound great, but they miss half the intended population. If you’re unsure about your eligibility, I strongly recommend consulting a tax professional. In this new era of Social Security benefits increase headlines and rising costs, it pays to know exactly where you stand.4. Health Benefits in Flux: FEHB and the Yearly Premium Dance If you’re like me, the annual ritual of reviewing your Federal Employees Health Benefits Program (FEHB) options is starting to feel less like a dance and more like a high-stakes game of musical chairs. The FEHB program is at a crossroads, and 2026 looks to be another year of both opportunity and anxiety for federal employees and retirees. Let’s break down what’s changing, what’s at risk, and how you can keep your finances—and your health—on steady ground. FEHB Program Premium Increases: The New Normal? First, let’s talk numbers. In 2025, the average FEHB premium increase for non-postal enrollees was a whopping 13.5%. If you thought that was a fluke, think again. The Affordable Care Act (ACA) Marketplace is seeing a median requested premium increase of 15% for 2026—the steepest since 2018. While FEHB isn’t the ACA, these trends are connected. As one OPM official put it: “At the same time, the financial underpinnings of the program are facing significant pressure from market driven premium inflation. This is exacerbated by an undercurrent of political discussion around proposals to fundamentally alter FEHB...” The government currently covers 72-75% of FEHB premiums, but rising costs could put even that support under review. For retirees, this means financial planning for federal retirees must account for higher out-of-pocket costs, especially if Medicare Part B premium increases are also on the horizon. Benefit Enhancements: More Coverage, More Complexity It’s not all bad news. The Office of Personnel Management (OPM) is pushing for real improvements. Their 2026 “call letter” to insurance carriers demands: Online claims submission portals by the end of 2026 Better, more accurate online provider directories Mandatory coverage for fertility preservation (for those at risk of iatrogenic infertility, like from chemotherapy) Expanded mental health provider networks to cut wait times and improve access These enhancements are overdue and welcome, but they come with a cost. As premiums rise, many retirees may be forced into narrower networks or higher-deductible plans just to keep coverage affordable. Open Season: Your Annual Lifeline Here’s my personal tip: review your open season options obsessively. Last year, I switched plans and saved almost two months’ worth of grocery bills. With the FEHB program in flux, this yearly review is your best defense against runaway costs. Don’t just look at premiums—dig into deductibles, provider networks, and new benefits. And remember the five-year FEHB rule: you must be enrolled for five years before retirement to keep your coverage as an annuitant. OPM’s efforts to modernize the FEHB program are colliding with ballooning costs, echoing what we’re seeing across the entire health insurance market. The yearly premium dance is getting faster and more complicated, and individual vigilance is more important than ever.5. Retirement Savings Shake-Up: Thrift Plan Tweaks, Hardship Withdrawals, and a Culture of Caution If you’re like me, you probably check your Thrift Savings Plan (TSP) balance a little more often these days. With all the talk of Thrift Savings Plan Changes and Federal Employees Retirement System Updates coming in 2025, it’s hard not to feel a bit uneasy. The numbers tell a story that’s hard to ignore: financial stress among federal employees is rising, and it’s showing up in our retirement accounts. The Federal Retirement Thrift Investment Board’s 2024 annual report laid it out clearly: “Loan usage rose to eight point six percent of participants, while hardship withdrawals reached a five year high of three point nine percent. This trend was particularly acute among mid career and lower paid workers...” In fact, among those in the second-lowest salary quintile, hardship withdrawals hit a staggering 8.47%. These aren’t just statistics—they’re a signal that many of us are feeling the squeeze, especially as Federal Employee Compensation Reform discussions highlight a nearly 25% pay lag compared to the private sector. It’s not just about the numbers, though. The TSP itself is evolving. On June 30, 2025, the L 2025 fund will be merged into the L Income fund, and a new L 2075 fund is being introduced for those with longer investment horizons. These Thrift Savings Plan Changes are meant to modernize and simplify our choices, but they also mean we need to stay alert. I learned this the hard way: I once delayed updating my TSP contact info online and nearly missed a major fund transition announcement. With annual statements now delivered digitally by default if you have an email on file, online diligence isn’t optional anymore—it’s essential. The uptick in TSP loans and hardship withdrawals paints a sobering picture. More of us are tapping into our retirement savings just to make ends meet. It’s a cautionary tale, especially for mid-career and lower-paid federal employees who are most at risk of falling behind. The combination of aggressive workforce reductions, attacks on pay and protections, and a hostile work environment is creating the perfect storm for a brain drain—and a loss of hard-earned institutional knowledge. As we brace for more Federal Employees Retirement System Updates and possible reforms to civil service protections in 2025, it’s clear that a culture of caution is taking hold. We can’t afford to be passive about our financial future. Whether it’s keeping up with TSP fund changes, monitoring digital communications, or thinking twice before taking a loan or hardship withdrawal, vigilance is our best defense. In these turbulent times, weathering the storm means more than just surviving day to day. It means staying informed, being proactive, and protecting the nest egg you’ve worked so hard to build. The road ahead may be uncertain, but with a little caution—and a lot of attention to detail—we can navigate the changes together. TL;DR: 2026’s shaping up to challenge every assumption you’ve had about federal employment and retirement. COLA’s getting squeezed by premiums, job protections are under fire, and smart planning—not blind optimism—is your best ally. Time to get real about the risks and the lifelines still available.

13 Minutes Read

Aug 9, 2025

Riding the 2025 Tidal Wave: The Surprising Reality for Federal Employees & Retirees (6-12 Jul 2025, Episode 6)

Let me tell you a secret: my grandmother used to clip federal benefit articles and tape them to the fridge, warning me that "change comes in waves—some big, some barely a ripple." This July, the waves feel more like a tidal surge for anyone in the federal workforce. So whether you’re on the verge of retirement, plotting your next pay step, or just reading from the sidelines, here’s the no-spin tour of what really happened (and what it actually means) in the federal arena this wild week. 1. New Benefits, Familiar Fears: What the One Big Beautiful Bill Act Really Changed If you’re like me, you probably spent the first half of 2025 anxiously refreshing news feeds, waiting to see what would happen to federal employee benefits. The One Big Beautiful Bill Act (OBBB), signed by President Trump on July 4, 2025, was the end of months of rumors, heated debates, and a lot of sleepless nights for federal employees and retirees. The fear was real: proposals to eliminate the FERS supplement, hike FERS contributions, and switch to a “High-5” annuity calculation were all on the table. For a while, it looked like federal retirement as we knew it was about to be gutted. But in a dramatic twist, the final version of the OBBB left those severe cuts on the cutting room floor. Thanks to procedural hurdles in the Senate—specifically the Byrd Rule, which blocks certain reforms in budget bills—these drastic changes were stripped out at the last minute. As one colleague put it, "The relief for many in the federal community comes from the provisions that were ultimately excluded from the bill." Health Savings Accounts Changes: More Flexibility, More Access Instead of slashing benefits, the OBBB delivered some genuine enhancements—especially around Health Savings Accounts (HSAs). Here’s what changed for federal employees in 2025: Telehealth Coverage: High Deductible Health Plans (HDHPs) can now permanently cover telehealth services before you meet your deductible. This pandemic-era flexibility is here to stay. Expanded HSA Eligibility: All bronze and catastrophic plans on the individual market now count as qualified HDHPs, making it easier for more people to open and contribute to HSAs. Direct Primary Care (DPC) Inclusion: Starting in 2026, being enrolled in a DPC arrangement won’t disqualify you from HSA contributions. Plus, DPC fees are now a qualified medical expense. These Health Savings Accounts changes signal a shift toward more benefit flexibility for federal employees in 2025 and beyond. Dependent Care Flexible Spending: A Long-Overdue Increase For those of us juggling work and family, the OBBB finally delivered some good news on Dependent Care Flexible Spending. The annual contribution limit for dependent care FSAs will jump from $5,000 to $7,500 starting in 2026—the first permanent increase since 1986. This is a big win for working parents and caregivers, and it’s a change that’s been needed for decades. Permanent Student Loan Repayment Assistance Another bright spot: the OBBB made permanent the ability for agencies to provide up to $5,250 per year in tax-free student loan repayment assistance under Section 127 educational assistance programs. Even better, this amount will be indexed for inflation starting in 2026. For many federal employees, this is a meaningful benefit that can help ease the burden of student debt. What Wasn’t in the Bill—and Why That Matters While the OBBB’s final version focused on expanding benefits, it’s important to remember how close we came to major cuts. Proposals like FERS supplement elimination, higher FERS contributions, and the “High-5” annuity calculation were only narrowly avoided. The fact that these ideas made it so far hints at the direction of future policy battles over federal employee benefits. For now, the OBBB has brought some welcome improvements—but the familiar fears haven’t disappeared. The landscape for federal employee benefits in 2025 is more flexible, but the debates are far from over.2. Sticker Shock: Premiums, Pensions, and the High Price of Security If you’re a federal employee or retiree, you’ve probably already heard the big news: health benefits premium increases for 2025 are the steepest we’ve seen in almost 20 years. As I logged into my Open Season portal, the number staring back at me was hard to ignore—a 13.5% average hike for the Federal Employees Health Benefits (FEHB) program. That’s an extra $26.10 coming out of each biweekly paycheck for the average non-postal worker or annuitant. As OPM bluntly put it, "Current and retired federal employees enrolled in the FEHB program are facing the largest premium increase in nearly two decades for 2025." Why the spike? OPM points to rising healthcare provider costs, more expensive prescription drugs, and a surge in outpatient and behavioral health spending. But there’s a twist: while we’re paying more, we’re also getting expanded coverage. For 2025, every FEHB plan must now cover in vitro fertilization (IVF) and at least one GLP-1 anti-obesity drug (think Wegovy) along with other oral anti-obesity medications. It’s a step forward for coverage, but it comes at a real price—one that hits especially hard for those of us on fixed incomes or tight budgets. Thrift Savings Plan Updates: New Funds and More Flexibility While we’re grappling with health premium hikes, the Thrift Savings Plan (TSP) is rolling out some noteworthy updates. At the end of June, TSP introduced the new L 2075 fund, aimed at those planning to start withdrawals around 2075. Meanwhile, the L 2025 fund has reached its target and merged into the L Income fund, which is designed for retirees focused on capital preservation. But the real game-changer is coming in January 2026: in-plan Roth conversions. This long-awaited feature will let us convert traditional pre-tax TSP balances to Roth, all within the plan—no more complicated rollovers. For those eyeing tax diversification in retirement, this is a big deal. Plus, thanks to the Secure 2.0 Act, there’s a new, higher catch-up contribution limit for participants aged 60-63, giving late-career savers a little more room to boost their nest egg. COLA Forecast: The FERS Diet COLA Penalty Persists Let’s talk about the other elephant in the room: the projected Cost of Living Adjustment (COLA) for 2026. As of June 2025, the forecast sits at just 2.5%. But here’s the kicker—if you’re a FERS retiree, you’ll likely get only 2%, thanks to the infamous FERS COLA penalty (often called the “diet COLA”). CSRS retirees and Social Security beneficiaries will see the full 2.5% increase, but FERS annuitants are once again left with less. This gap may seem small, but over time, it erodes the value of FERS pensions, especially as inflation keeps nibbling away at our purchasing power. FEHB premium increase: 13.5% for 2025, +$26.10 biweekly Expanded coverage: IVF and anti-obesity drugs now included in all FEHB plans TSP updates: New L 2075 fund, in-plan Roth conversions (Jan 2026), higher catch-up limits COLA forecast: 2.5% for 2026; FERS retirees get only 2% Between rising health costs, shifting TSP options, and the ongoing COLA disparity, it’s no wonder so many federal employees and retirees are feeling the squeeze. The “high price of security” is more than just a headline—it’s our new reality.3. Layoffs, Lockdowns, and Leadership Jolts: The Unexpected Fallout This past week, the federal workforce was rocked by a series of seismic events—each one with the potential to reshape careers, benefits, and daily routines for federal employees and retirees. If you thought the threat of mass layoffs was just political posturing, the Supreme Court’s July 8th ruling changed everything. Suddenly, Supreme Court federal layoffs aren’t just a headline—they’re a reality for thousands across agencies like the Social Security Administration, IRS, and Department of Veterans Affairs. Supreme Court Greenlights Mass RIFs: Layoffs Get Real On July 8, 2025, the Supreme Court lifted previous restrictions, giving the administration the green light to proceed with agency-wide reductions in force (RIFs). For months, these cuts were stalled by legal challenges, but now, agencies are moving fast. The anxiety is palpable—federal employee unions are sounding the alarm, and lawmakers like Rep. Don Beyer are urging a pause, but the machinery is already in motion. If you’re a federal worker, the risk of being swept up in a RIF is no longer theoretical. "The week saw significant developments at the federal government's Central Human Resources Agency." OPM Leadership Changes: A New Era of Tech and Data As if layoffs weren’t enough, the OPM leadership changes added another layer of uncertainty. On July 9th, Scott Cooper—a venture capital executive with a reputation for tech-driven transformation—was confirmed as the new OPM Director in a tight 49-46 Senate vote. His arrival signals a major push toward digital modernization and data-driven decision-making at OPM. For many, this is a double-edged sword: while modernization is overdue, it often comes with growing pains and job cuts. FedScope Data: Shrinking Workforce, Rising Pressure OPM’s newly revamped FedScope platform dropped a bombshell: between September 2024 and March 2025, the federal workforce shrank by over 23,000 employees. That’s not just a statistic—it’s a sign of the administration’s commitment to “right-sizing” government. For those left behind, the pressure is mounting. More work, fewer hands, and the ever-present threat of further cuts are fueling burnout and uncertainty. Return-to-Office Mandates: Colliding with Burnout and Retirements Layered on top of layoffs and leadership jolts is the return-to-office push. A new executive order ends pandemic-era telework, forcing agencies back to 2019 routines. The Department of Veterans Affairs has already set a July 28th deadline for remote staff. For many, this means longer commutes, less flexibility, and a spike in retirement applications. In fact, federal retirement processing delays are now at a six-year high, with OPM’s shift to all-digital applications (effective July 15th) struggling to keep up with a 22% jump in claims. Supreme Court federal layoffs are now a reality, not a rumor. OPM leadership changes signal a tech-driven shakeup. FedScope data shows a net loss of 23,000+ federal workers in just six months. Return-to-office mandates are colliding with a surge in retirements and burnout. Mass layoffs, digital transitions, and forced returns to the office are converging, creating an unprecedented moment for federal employees and retirees. The fallout is real, and nobody—from the cubicle to the corner office—is immune.4. Pay Freezes & Performance Pressure: When the Numbers Get Personal If you’re a federal employee, the numbers for 2026 are about to get very personal. The latest federal workforce legislative updates have made one thing clear: a pay freeze is (almost) guaranteed. The OBBB, the major budget law, skipped any provision for a 2026 raise, and the president’s budget proposal doubled down, calling for a flat-out freeze for all civilian employees. The Federal Adjustment of Income Rates (FAIR) Act—which would have meant a 4.3% raise—remains stalled in Congress. So, what’s left? A tiny average bump of about 0.5% from locality pay adjustments. That’s it. For those of us watching our paychecks, this isn’t just a line item. It’s a real hit, especially as costs keep rising. The talk of federal employee pay cuts may not be literal, but with inflation and no real raise, it sure feels like one. And while there’s no increase in FERS contribution rates (yet), the squeeze is real. Performance Pressure: The OPM Memo Shakes Things Up Just as pay is locked, the pressure to perform is ramping up. On June 17, 2025, a sweeping memorandum issued by OPM “completely overhauls the performance management system for all non-senior federal employees.” Here’s what that means for us on the ground: Shorter PIPs: Performance Improvement Plans (PIPs) are now capped at just 30 days—down from the traditional 60 or 90. That’s a much shorter leash if you’re flagged for performance issues. Easier Firings: Agencies are encouraged to use Chapter 75 adverse action procedures, which don’t even require a PIP before moving to discipline or removal. Stricter Ratings: The memo directs agencies to crack down on “rating inflation.” It’s now harder to get an “Outstanding” rating, and some agencies may even implement forced distribution—meaning a set percentage of employees must be rated lower, no matter what. The stated goal is a “high performance culture,” but for many, it feels like job protections are being chipped away. Federal employee unions like AFGE are calling foul, arguing these changes violate existing labor contracts. The administration, however, seems determined to push ahead. Return to Office: The End of Pandemic-Era Flexibility The other shoe dropping in 2025 is the return to office for federal employees. Agencies like the VA have set hard deadlines (July 28, 2025, for many remote workers) to end most telework agreements. The “Show Up Act” in Congress would force agencies back to pre-pandemic telework levels—and make any future flexibility much harder to justify. This comes despite a June 2025 GAO report showing that remote work helped agencies hire for mission-critical jobs. Morale is already taking a hit, and many predict a wave of retirements and resignations as the new rules take hold. “A sweeping memorandum issued by OPM on June 17, 2025, completely overhauls the performance management system for all non-senior federal employees.” Pay is locked, expectations are up, and the definition of a federal career is changing fast. For those of us in the trenches, these aren’t just policy shifts—they’re personal.5. Wild Card: What If...? Future Scenarios and Unanswered Questions As I look ahead to the next chapter for federal employees and retirees, I can’t help but feel that we’re all riding a tidal wave of uncertainty. The latest Federal retirement system updates have left us with more questions than answers, especially when it comes to the infamous FERS COLA penalty. If this formula persists, what does the long-term picture really look like for FERS retirees? Imagine watching your annuity shrink in real terms, year after year, for a decade or more. That’s not just a hypothetical—it’s the very real risk we face if the current COLA disparity continues to erode the purchasing power of FERS annuities compared to CSRS or Social Security benefits. The Equal COLA Act, championed by federal employee unions and introduced by the late Representative Jerry Connelly, was supposed to be the fix. Its goal is simple: eliminate the FERS COLA penalty and put FERS retirees on equal footing with CSRS and Social Security recipients. But as of now, the bill is stuck in committee, a casualty of Congressional gridlock and the broader uncertainty surrounding the Budget Resolution 2025. With Congress divided and new bills stalling, I have to wonder—are radical shifts and legislative inertia just the new status quo for federal retirement policy? Meanwhile, the push for modernization at OPM is a double-edged sword. The agency’s move to a fully digital retirement system, effective July 15, 2025, is supposed to streamline a process that’s been bogged down by paper for decades. But here’s the paradox: “The paradox of retirement processing: modernization meets gridlock. Even as OPM moves to modernize its systems, new retirees are facing significant delays.” In June 2025, OPM’s retirement claims backlog surged by 22%, hitting its highest midyear level in six years. Could this digital transition create a ‘retirement limbo’ where hundreds of new retirees wait months for their first check? For those relying on timely income, this is more than a technical hiccup—it’s a potential crisis. And what about the broader workforce? Suppose layoffs accelerate in response to budgetary pressures or further policy changes. Will agencies lose irreplaceable institutional knowledge, leaving only newbies at the Social Security office counter? The Social Security Fairness Act could boost benefits for some, but if churn and inexperience become the norm, the quality of service may suffer. Between policy shifts, reform fatigue, and the growing pains of digital modernization, the future for those invested in federal service is anything but clear. The fate of the Equal COLA Act, the potential for further FERS formula changes, and the ongoing influence of federal employee unions all hang in the balance. As we move into 2025 and beyond, I’m left asking: Will the lived reality for federal employees and retirees be stranger—and perhaps tougher—than any scenario we can imagine? Only time will tell, but one thing is certain: staying informed and engaged is more important than ever. TL;DR: July 2025 will be remembered as the week D.C. finally pressed the 'reset' button on federal employment. Mass layoffs, benefit recalibrations, huge premium increases, and a pay freeze are shaping both the present and future of federal workers—so now’s the time to pay close attention, even if all you expected was more of the same.

14 Minutes Read

Aug 9, 2025

The 2025 Federal Worker Survival Kit: What Every Fed & Retiree Needs to Know This Week (29 Jun - 5 Jul 2025, Episode 5)

I’ll never forget the week my father’s annuity paperwork went missing, lost in a maze of slow-motion bureaucracy. It left our family glued to the news for any whisper about federal retirement changes. Flash forward to this week: a whirlwind of rumors, near-misses, and a few actual wins for federal employees and retirees. If you think federal benefit news is all dry memos, think again—real people (yep, like my family) live through every headline. This week’s roundup? Less policy-speak, more real talk, so you can breathe a little easier about your paycheck and pension. When Cuts Come Knocking: HR One’s Wild Ride and What It Means for Your Paycheck Let’s be honest—2025 has been a nerve-wracking year for anyone watching federal benefits. If you’re like me, you probably spent the spring and early summer anxiously tracking every headline about HR One, the massive budget reconciliation bill that had the potential to upend our retirement and health security. Here’s what really happened, what almost happened, and what it means for your paycheck and future benefits. HR One: The Threat to 2025 Federal Benefits Early versions of HR One in the House sent shockwaves through the federal workforce. The proposed changes to the Federal Employee Retirement System (FERS) were especially alarming: Eliminating the FERS annuity supplement for most early retirees—meaning those who retire before Social Security eligibility would lose a key bridge benefit. Switching pension calculations from the “high-three” to a “high-five” salary average—potentially slashing annuity payouts for future retirees. Raising employee contributions for retirement, and even talk of FEHB premiums increases or reduced federal support for Federal Employee Health Plans. For weeks, it looked like these cuts might become reality. The anxiety was real—especially for those of us planning to retire soon or already living on a fixed income. Senate Rules and Advocacy: The Game Changers But then, the tide turned. The Senate parliamentarian ruled that the most controversial benefit cuts were out of order under Senate rules. This procedural move, combined with powerful advocacy from groups like NARFE and federal unions, forced lawmakers to rethink their approach. The Senate’s version of HR One dropped all the heavy cuts. Instead, it focused on noncontroversial items like an audit of FEHBP enrollment and budget efficiency tweaks. By June 29, media outlets confirmed: No cuts to current workers’ or retirees’ earned benefits or union rights made it into the Senate package. As NARFE President Bill Shackelford put it, “This is a huge victory for workers and retirees.” On July 1, 2025, NARFE celebrated the fact that none of the provisions they opposed survived in the final bill. For now, your pension, health benefits, and union protections are safe—at least until 2028, when the FERS supplement cut could be reconsidered (but only for future hires, not those already vested). What’s Actually Changing for Federal Benefits in 2025? No reduction to current retirement or health benefits for federal employees or retirees. The FERS annuity supplement cut is delayed until 2028, and vested employees are exempt. No FEHB premium increases or changes to federal support for health plans in this bill. One big win: The Social Security Fairness Act (HR 82) repealed the Windfall Elimination Provision and Government Pension Offset, boosting Social Security checks for over 2.8 million retirees. Thanks to coordinated advocacy and some lucky Senate rules, the worst-case scenarios for Federal Benefits Changes 2025 didn’t come to pass. For now, your paycheck and retirement plans are protected—and that’s something worth celebrating.Good News For a Change: Social Security Bump and TSP’s Summer Rally If you’re a federal employee or retiree, you’ve probably been watching the headlines with a mix of hope and anxiety. This week, I’m happy to share some real good news. Thanks to recent legislative changes and a strong summer rally in the Thrift Savings Plan (TSP), federal workers and retirees are seeing immediate, tangible benefits to their retirement security. Let’s break down what’s happening and why it matters for your wallet. Social Security Fairness Act: Higher Checks for Over 2.8 Million Feds For years, many of us—especially those under the Civil Service Retirement System (CSRS)—have felt the sting of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). But that changed in a big way this year. On January 5, 2025, the Social Security Fairness Act (HR 82) was signed into law, repealing both WEP and GPO. This is a huge win for federal retirees who have long argued these provisions unfairly reduced their Social Security benefits. What does this mean? Over 2.8 million workers, including many CSRS retirees, will see higher Social Security checks starting in 2025. Retroactive payments: The Social Security Administration has already begun sending out higher payments, with back pay going all the way to January 2024. 'Over 2.8 million workers, including many civil service retirement systems, CS retirees, will see higher Social Security checks beginning in 2025.' This long-awaited change is finally putting more money in the pockets of those who served the public for decades. If you’re affected, check your statements—many have already received their retroactive payments. TSP’s Summer Rally: Strong Gains for Federal Employee Retirement Savings It’s not just Social Security that’s delivering good news. June was a banner month for the Thrift Savings Plan (TSP), the cornerstone of federal employee retirement savings. All TSP funds posted gains, giving a welcome boost to account balances across the board. S Fund (Small/Mid-Cap Stocks): Up 5.40% in June 2025, bringing year-to-date returns back into positive territory. C Fund (Large-Cap U.S. Stocks): Up 5.8% in June—one of the strongest months in recent memory. F and G Funds (Bond-like Options): Both saw modest but positive gains, providing stability for those closer to retirement. L Funds (Lifecycle Funds): Every L Fund finished June in the green, with the L Income Fund up 0.57% and other L Funds rising 3–4%. For those keeping an eye on TSP Contribution Limits 2025, these strong returns mean your savings are working harder for you. Even if you’re nearing retirement, the positive performance of the L Funds and bond-like options helps offset any worries from earlier legislative uncertainty. Why This Matters Now Between the Social Security Fairness Act’s boost to monthly checks and the TSP’s robust summer rally, federal workers and retirees are finally seeing some relief. After months of budget drama and uncertainty, these changes offer real, immediate benefits. If you’re planning your retirement or just keeping tabs on your Federal Employee Retirement Savings, this is the kind of news we all needed.Hiring Headaches and Deferred Departures: Federal Workforce Reality Check Let’s talk about the real story behind Federal Workforce Policies in 2025—especially if you’re a current federal employee, retiree, or someone eyeing a federal job. While the headlines have focused on Federal Benefits Changes 2025 and the delayed supplement cut (now pushed to 2028, with current employees exempt), the day-to-day reality for federal workers is a lot more complicated—and, frankly, frustrating. Early 2025: Federal Job Search Frenzy At the start of 2025, the mood across many agencies was tense. With talk of cuts and benefit changes, federal workers—especially those in at-risk agencies—rushed to explore their options. According to Government Executive, job applications by federal employees soared by 150% from January through April. This wasn’t just idle curiosity; people were seriously considering jumping ship, especially where Federal Job Openings in the private sector seemed promising. May 2025: The Outside Market Cools But by May, the landscape shifted. The outside job market, which had looked like a lifeboat, suddenly shrank. Data from Indeed showed a 4% drop in job applications by federal workers. Why? Major government contractors—often the first stop for departing feds—froze hiring, with 15% fewer job postings year-to-date. The much-feared Hiring Freeze Federal Government effect had spilled over into the private sector, leaving many would-be job switchers in limbo. Deferred Departures: The Holding Pattern To add to the confusion, agencies rolled out programs letting employees delay their resignations until fall. This created a strange holding pattern: people who wanted to leave, but were waiting for the right moment, or for the job market to thaw. As one analyst put it, “Current feds may find fewer outside opportunities, and some are delaying leaving federal service for now.” For managers, this means not knowing who’s really planning to stay or go—making workforce planning a headache. Pay Raises on Ice: DOD Wage-Grade Workers Stalled Meanwhile, a major pay headache hit blue-collar federal workers. When Defense Secretary Hegseth abruptly shut down all DOD advisory committees, it had an unexpected side effect: it froze the wage adjudication panels that set pay for the Federal Wage System. Over 60,000 wage-grade federal employees—almost 30% of all wage-grade feds—are now waiting for their 2025 pay raise across 87 of 248 wage areas. As one observer put it: “Tens of thousands of DOD blue collar employees are essentially on pay hold until the committees are reconstituted.” By law, these employees are supposed to get annual pay reviews. Now, those raises are postponed indefinitely, with no clear timeline for resolution. Federal job hopping peaked early in 2025, then cooled as outside opportunities dried up. DOD pay adjustments for blue-collar workers are on pause across 87 locations. Employees can delay resignations, so job movement has stalled. Bottom line: The federal talent pipeline is stuck in a patchy, frustrating plateau—hiring freezes, pay raise stalls, and managers left guessing who’s really leaving. If you’re a fed, it’s a time to watch Federal Workforce Policies and Federal Benefits Changes 2025 closely, and keep your options open—just in case the market shifts again.Unions (Still) Matter: Courtroom Drama, OPM Reversals & the Power to Bargain If you’ve ever doubted the importance of Union Rights for federal employees, this summer’s legal fireworks should put those doubts to rest. On July 5, 2025, a federal judge in New York delivered a major win for federal workers and their unions—a verdict that’s already reshaping the landscape for Federal Bargaining Rights and setting the tone for the year ahead. Permanently Blocking Union-Busting: The Courtroom Showdown Here’s what happened: Judge Thomas Donato issued a permanent order blocking the Trump-era executive action that aimed to end collective bargaining at more than a dozen federal agencies. The order targeted agencies like Justice, Treasury, Health and Human Services, Veterans Affairs, Agriculture, State, and Labor. Judge Donato didn’t mince words, finding the executive order was “essentially a retaliatory move against unions for opposing Trump’s policies.” “A retaliatory attempt to bust federal unions.” – Everett Kelly, AFGE President For those of us watching the slow erosion of Federal Bargaining Rights over the past few years, this ruling is a breath of fresh air. Unions like AFGE and NTEU quickly celebrated, calling the decision a much-needed corrective to what they saw as union-busting tactics. While the White House has already signaled plans to appeal, for now, union representation and bargaining rights remain untouched. That’s a huge relief for anyone concerned about Federal Benefits Changes 2025 and the future of workplace protections. OPM Reverses Course on Politically-Charged Hiring The courtroom wasn’t the only battleground. The Office of Personnel Management (OPM) quietly reversed a controversial hiring policy that had federal job applicants writing essays about their loyalty to the president. After a wave of protests from legal and advocacy groups—and, yes, union pressure—OPM made the question optional and unscored. This retreat is more than a bureaucratic footnote: it’s a sign that union advocacy and public scrutiny still have the power to keep hiring practices fair and focused on merit, not politics. Union Advocacy: Wins in Court and Beyond Legal victories: Permanent injunctions like Judge Donato’s keep the door open for collective bargaining at agencies that serve millions of Americans. Policy influence: Unions are credited with forcing OPM’s hand on hiring reforms, protecting the integrity of the federal workforce. Legislative readiness: With the White House appealing and new threats always on the horizon, unions are gearing up for more fights—both in Congress and the courts. Between courtroom drama and administrative reversals, it’s clear that union influence remains critical. Whether it’s defending Federal Employees Health Benefits or stopping politically motivated hiring screens, organized labor is still the strongest line of defense for federal workers. The message is simple: vigilance and advocacy are as important as ever, especially as we head into a year of potential Federal Benefits Changes 2025 and ongoing policy battles.A Wild Card for the Underdogs: Federal Retirement Fairness Act & The Ongoing ‘Wait and See’ If you’ve ever felt overlooked in the federal workforce—especially if you started as a noncareer employee or a postal letter carrier—this year’s biggest “wild card” might just be the Federal Retirement Fairness Act (HR 1522). Reintroduced on February 24, 2025, with strong bipartisan support, this bill is stirring hope for more than 132,000 letter carriers and countless others who began their federal journeys in part-time, temporary, or transitional roles after 1988. For years, these employees did the same work as their career colleagues but were denied the chance to count that time toward their retirement. Now, HR 1522 could finally let them “buy back” those missing years and boost their future annuities—an overdue recognition for some of the hardest-working underdogs in government service. Here’s how it works: if passed, the Federal Retirement Fairness Act would allow eligible employees to purchase service credit for their noncareer time. This is a game-changer for those who started in low-grade or part-time positions, giving them a fair shot at a secure retirement. As one union leader put it, 'This law would benefit current workers by boosting their future annuity amounts.' It’s not just about money—it’s about justice for those who kept the mail moving, the offices running, and the government’s promises to its people. Of course, the debate is far from settled. Critics worry about the cost, asking whether retroactive benefits should go even further or if the price tag is too high. Supporters, on the other hand, argue that this is a simple matter of fairness—correcting a long-standing oversight that left many federal employees behind. With 24 cosponsors already on board, HR 1522 mirrors previous versions that drew wide bipartisan backing. But as with so many things in Washington, we’re in a classic “wait and see” moment. Will Congress finally deliver for these underrecognized workers, or will the bill stall once again? Meanwhile, another big shift is quietly reshaping the retirement landscape: Federal Workforce Digitization. Starting July 15, 2025, all new retirement applications must be filed electronically. The Office of Personnel Management (OPM) says this move will streamline OPM Retirement Processing, cutting down the months-long backlogs that have frustrated so many soon-to-be retirees. For those of us planning our exits, this is a welcome modernization—one that promises less paperwork, fewer headaches, and (hopefully) faster access to our hard-earned benefits. All this comes against a backdrop of ongoing uncertainty. Some agencies, like USAID, have faced proposals for elimination, and many employees are delaying retirement or using deferred resignation programs as they watch for possible reductions in force. Yet, the news this week is mostly positive: major cuts have been blocked by courts or Congress, and recent legislation like the Social Security Fairness Act is already increasing checks for many CSRS retirees. In conclusion, the Federal Retirement Fairness Act is more than just a policy tweak—it’s a shot at real equity for federal workers who started at the bottom and never stopped serving. As we move into a new era of Federal Benefits Changes 2025 and digital retirement filing, the message is clear: keep your eyes on Capitol Hill, stay informed, and be ready to act. For the underdogs of the federal workforce, the next few months could finally bring the fairness they’ve earned—and a smoother path to retirement for all.TL;DR: Federal benefits for 2025 have dodged major cuts (for now). Retirement and health coverage hold steady, TSP rebounds, and job movement slows as court wins keep unions strong—a rare breather in federal workforce news. Don’t nap on next week, though; policy can turn fast.

14 Minutes Read

Aug 9, 2025

Federal Shake-Up: Surprising Twists in Retirement, Benefits, and Workplace Life (22-28 Jun 2025, Episode 4)

Let me set the stage: it’s late June, the sun is baking down on D.C., and in my inbox, news alerts are pinging faster than I can read them. If you’ve ever felt your future hinge on a Congressional draft or a judge’s ruling—welcome to my world as a federal employee watcher. This week, I swapped my coffee for chamomile tea when I saw just how close some of our retirement benefits were to the chopping block (again). Yet, as it turns out, some of the biggest threats faded at the last minute, while new curveballs came out of nowhere. Buckle up for this week’s briefing: it’s a wild one.The Almost-Apocalypse: Retirement Cuts That Weren’t (Yet)Last week, it felt like we were all holding our breath as Congress debated some of the most dramatic changes to federal retirement benefits in years. For anyone following Federal retirement benefits updates, the headlines were alarming: proposals to eliminate the FERS annuity supplement for early retirees, force new hires into at-will status, and hike up pension contributions for current employees. It was a real “almost-apocalypse” moment for federal workers and retirees alike.But here’s the twist—by the end of June, the Congressional budget reconciliation for federal employees looked a lot less scary. The Senate’s late-June draft quietly dropped the most severe cuts. That means, for now, there’s:No FERS annuity supplement elimination—early retirees will still get their Social Security bridge benefit.No forced at-will status for new hires—the Senate version left this out entirely.No increase in FERS pension contributions—current employees won’t owe more to their retirement funds.No union payroll tax fee—protecting unionized workers’ dues from a new financial hit.To quote the mood on the Hill,“The worst retirement benefit cuts in the House’s proposal appear off the table in this period.” That’s a huge relief for both active and retired federal employees. The FERS annuity supplement elimination, in particular, would have hit early retirees hard, so seeing that proposal vanish (at least for now) is a win.Of course, this isn’t the end of the story. Groups like NARFE advocacy for federal retirement benefits are keeping the pressure on Congress to make sure these cuts don’t sneak back in during later negotiations. NARFE and other retiree organizations have been vocal, urging lawmakers to safeguard the benefits that federal workers have earned over decades of service.There were a few other positive developments, too. The Senate draft didn’t touch the “high-3” salary basis for pension calculations (no shift to “high-5”), and the controversial payroll tax fee on unions was removed—another win for unionized federal employees.Meanwhile, the House Education and Labor Committee unanimously advanced a bipartisan bill (HR 3170) to modernize federal workers’ compensation. If it becomes law, injured federal employees will have more options for medical care, including treatment from physician assistants and nurse practitioners—not just doctors or chiropractors. This is a small but meaningful step forward for the broader federal workforce.One issue that’s still simmering is the disparity in cost-of-living adjustments (COLAs) between CSRS and FERS retirees. The bipartisan Equal COLA Act (HR 491/S 624) is gaining support, but no new action was taken last week. Still, it’s clear that active and retired FERS annuitants are calling for parity—and lawmakers are listening.For now, the “almost-apocalypse” of federal retirement cuts has been averted. But as always, vigilance and advocacy remain the name of the game.Performance Pressure: New Rules, New Reality for WorkersIf you work in a federal agency, you’ve probably felt the ground shift under your feet this June. With sweeping performance management reforms for federal agencies rolling out, the expectations for every employee—new or seasoned—are changing fast. Here’s what’s happening, and what it means for all of us on the inside.Performance Ratings: Fewer “Exceeds Expectations”On June 17, the Office of Personnel Management (OPM) released new guidance that’s already making waves. Agencies are now being told to limit how many employees can receive top performance ratings. In other words, “exceeds expectations” is no longer a box most of us can check. Only truly exceptional work will get that gold star, and managers are expected to make sure the majority of ratings fall in the “meets expectations” range.But that’s not all. The new rules urge agencies to move quickly when it comes to underperformance. Managers are now directed to discipline or remove poor performers faster—especially in agencies that have recently lost some union protections. Unions have pushed back, saying this is a big change from what was negotiated in contracts. Still, as the memo puts it,“At minimum, current workers should expect stricter performance evaluations and faster accountability processes.”Probationary Period Rules: No More Automatic Career StatusAnother major shake-up arrived on June 24, when the Federal Register published new probationary period rules for federal employees in 2025. Gone are the days when new hires simply became permanent after their probation ended. Now, agencies must actively certify that keeping a probationary employee is in the public interest. If not, the employee is let go—no more automatic pass.This means supervisors can’t just let probation expire without action. They must review each new hire and make a clear decision. For new employees, this is an extra hurdle, and for agencies, it’s a push to “weed out poor fits earlier.” All HR policies across federal agencies are being updated to reflect this new reality.Union Rights: A Major Win for Collective BargainingAmid all these changes, there was a big legal victory for union rights. On June 25, a San Francisco federal judge issued a nationwide injunction blocking President Trump’s 2025 executive order that would have stripped collective bargaining rights at dozens of agencies. The judge agreed with unions that this move likely violated federal law and free speech protections. For now, hundreds of thousands of federal employees can still negotiate working conditions through their unions—a critical protection as performance management reforms take hold.Paid Administrative Leave: Under the MicroscopeOne more issue is drawing attention: paid administrative leave for federal employees. Reports show over 100,000 federal workers are on paid leave—often for much longer than the ten-day limit Congress intended. Watchdogs warn this may be unlawful, and advocacy groups have filed complaints about agencies putting employees on leave without clear cause. This surge in administrative leave is now under scrutiny, and it’s another sign that HR practices are facing tough questions in 2025.Retiree Rollercoaster: COLA, Health, and the Chase for ParityIf you’re a retired federal employee, you know the ride never really stops. This past week, the headlines might not have screamed “crisis,” but the undercurrents in Congress kept retirees on edge—especially around cost-of-living adjustments for federal employees, the FERS annuity supplement, and federal employee health benefits updates. Here’s what stood out in the June 27-28 recap.The COLA Gap: Still Waiting for ParityLet’s talk about the elephant in the room: FERS retirees still get a lower cost-of-living adjustment (COLA) than their CSRS or Social Security peers. Unless new legislation like the Equal COLA Act (HR 491/S 624) passes, this gap isn’t closing anytime soon. The Equal COLA Act, introduced by Rep. Gerry Connolly and Sen. Alex Padilla, would finally align FERS COLA with CSRS and Social Security—no more 2% cap penalty when inflation spikes. But as of June 28, 2025, the bill remains stuck in committee. Advocacy groups like NARFE are making noise, but for now, “COLA parity remains unresolved.”Retirees hoping for COLA reform will be watching whether that bill gains momentum later this summer.So, if you’re a FERS annuitant, you’re still feeling the pinch. The push for the Equal COLA Act is heating up, but the finish line is nowhere in sight.FERS Annuity Supplement: Cuts Off the Table (For Now)Earlier drafts of the House reconciliation bill threatened to eliminate the FERS annuity supplement for early retirees and change the pension calculation from “high three” to “high five” years of salary. Retiree groups, especially NARFE, sounded the alarm, warning these cuts would break promises made to federal workers. Thankfully, the Senate’s latest version dropped both provisions. If this language holds, current and future retirees can breathe a sigh of relief—at least for now. But the issue isn’t dead; it could resurface in future negotiations.Health Benefits: No Sudden Moves, But Watch for FallOn the health care front, there’s been no new action on Federal Employees Health Benefits (FEHB) eligibility or premium changes. By law, 2026 FEHB rates will be set during open season this fall, so retirees should keep an eye out for updates. For now, the most recent data shows average government contributions increased by 10.1% for FEHB and 5.1% for PSHB. No late June announcements changed this, but with open season approaching, many retirees are bracing for another round of premium hikes.FERS retirees: Still waiting for COLA parity—Equal COLA Act is stalled.FERS supplement cuts: Off the table in the Senate, but not gone for good.Health benefits: No immediate changes; 2026 rates set this fall.Advocacy groups: Turning up the pressure for summer action.For now, retirees have dodged the worst, but the fight for fairness—especially around COLA and health care costs—continues to simmer just below the surface.‘What Ifs’ and Curveballs: Lesser-Known Bills & Legal SurprisesIf there’s one thing I’ve learned covering federal workforce news, it’s that the biggest changes often start quietly—buried in committee markups or legal footnotes. This past week, the headlines focused on big-picture budget drama, but the real shake-ups for federal employees came from a handful of lesser-known bills and legal surprises. Let’s break down the curveballs you might have missed.House Moves to Modernize Federal Workers’ CompFirst up: the House quietly passed HR 3170, a bill that could reshape the Federal Employees’ Compensation Act. This amendment, which cleared the House Education & Labor Committee unanimously on June 27, aims to expand care options for injured federal workers. Instead of being limited to traditional doctors, employees could soon access a wider range of care providers—think nurse practitioners and physician assistants. It’s a technical change, but for anyone who’s ever navigated the federal workers’ comp maze, it’s a big deal. These Federal Employees’ Compensation Act amendments might not make the evening news, but they could mean faster, more flexible care for thousands.State Department Layoffs: On Hold, But Not ForgottenMeanwhile, the State Department’s massive reduction in force for federal employees in 2025—which originally targeted over 30,400 jobs—remains on ice. State recently rewrote its RIF rules, carving out dozens of new competitive areas to make targeted layoffs easier. But as of June 28, a federal judge has blocked the cuts, and a Supreme Court decision (Trump v. Casa) just muddied the waters on nationwide injunctions. For now, as one official put it,“In practical terms, federal employees currently have some protection against the administration’s proposed workforce cuts, at least temporarily.”This legal limbo leaves current State Department workers in a holding pattern. The agency still plans to reduce 900 positions, but no pink slips are going out yet. The Supreme Court’s ruling limits broad injunctions but, crucially, leaves the lower court’s block in place for now. It’s a classic example of how legislative proposals affecting the federal workforce can shift overnight—sometimes with just a single court order.Travel Perks, Administrative Quirks, and Summer SurprisesNot all surprises are seismic. The Federal Employee Train Transportation Act is floating around the House, promising new travel perks for feds—if it ever gets a floor vote. Meanwhile, agencies are grappling with more mundane issues: overuse of paid leave, and GSA’s annual summer electricity alert. (Yes, when policymakers start talking “energy curtailment” during a D.C. heat wave, you know it’s truly summer in government.)HR 3170: Expands workers’ comp care optionsState RIF: Layoffs paused, rules rewritten, legal fight ongoingTrain Act: Possible new travel benefits for federal employeesAdmin quirks: Paid leave audits, energy curtailment noticesSometimes, it’s the bills and legal twists you don’t see coming that matter most. This week proved that again—reminding us how quickly the ground can shift under federal employees’ feet.One Eye on the Exit: Advocacy, Uncertainty, and Personal Survival TipsIf there’s one thing I’ve learned as a federal employee watching the headlines, it’s this: you can’t afford to zone out, even for a week. The landscape for federal retirement benefits and workplace life is always shifting—sometimes quietly, sometimes with a bang. This week’s Congressional budget reconciliation news is a perfect example. With the final reconciliation bill heading for Senate debate, NARFE advocacy and other groups are working overtime to protect what we’ve all worked so hard to earn. Their vigilance is our first line of defense, but personal vigilance is just as critical.Let’s be honest—uncertainty is the only constant in federal service. Even small administrative tweaks can send ripples through your paycheck, health insurance, or retirement plan. I’ve seen colleagues get caught off guard by changes that seemed minor at first, only to realize later how much they impacted take-home pay or future benefits. That’s why I keep a dedicated calendar for key legislative dates, agency announcements, and the all-important open season. It’s a simple habit, but it means I’m never scrambling at the last minute or blindsided by a sudden shift.Advocacy groups like NARFE are on the frontlines, keeping a close eye on every move in Congress that could affect federal employees and retirees. Their updates are a lifeline, especially when rumors start swirling. And let’s face it—rumors travel faster than facts in federal workforce circles. I’ve lost count of how many times I’ve heard wild stories about benefit cuts or job losses, only to find out later that the truth was far less dramatic. My rule of thumb? Always check the source before you panic. If it’s not coming from NARFE, your agency, or a trusted news outlet, take it with a grain of salt.As we wait for the Senate to take up the reconciliation bill, the best thing you can do is stay engaged. Subscribe to updates from NARFE and other advocacy organizations. Set reminders for important dates. And most importantly, talk to your colleagues—sometimes the best information comes from those who are paying attention right alongside you. I’ve dodged more than one benefits scare just by double-checking the latest updates and sharing what I’ve learned with others.In times like these, it’s easy to feel powerless. But remember: staying informed is your best tool. The ground under federal employees and retirees never stops shifting, so personal vigilance and community advocacy matter more than ever. Next week’s headlines could turn today’s relief into tomorrow’s panic—or, with luck, into a well-earned victory. So keep one eye on the exit, but both eyes on the facts. That’s how we survive—and thrive—in the ever-changing world of federal service.TL;DR: No immediate cuts to pensions or FERS supplements, tougher performance rules are coming for active employees, and retirees are still waiting on COLA fairness. Stay informed—next week might flip the script again.

13 Minutes Read

Paydays, Pitfalls, and Power Plays: Inside the Federal Employee Money Maze (31 Aug - 6 Sep 2025, Episode 14))

Beyond the Sticker Shock: Navigating 2025 FEHB Premium Increases and the Federal Worker Maze (24-30 Aug 2025, Episode 13)

Boots on the Ground: Unpacking the 2025 Federal Forces Deployments and Their Unintended Ripples (17-23 Aug 2025, Episode 12)

Behind the Headlines: The Human Stories Shaping Federal Workers in 2026 (10-16 Aug 2025, Episode 11)

When the Rules Change: My Deep Dive into Federal Employment Law Shifts for 2025 (3-9 Aug 2025, Episode 10)

Beyond the Headlines: What’s Really Shifting for Federal Employees and Retirees in 2025? (27 Jul - 2 Aug 2025, Episode 9)

Federal Employee Benefits 2025: Navigating Change, Uncertainty, and Opportunity (20-26 Jul 2025, Episode 8)

Weathering the Storm: A Candid Guide for Federal Employees and Retirees Facing 2026 Turbulence (13-19 Jul 2025, Episode 7)

Riding the 2025 Tidal Wave: The Surprising Reality for Federal Employees & Retirees (6-12 Jul 2025, Episode 6)

The 2025 Federal Worker Survival Kit: What Every Fed & Retiree Needs to Know This Week (29 Jun - 5 Jul 2025, Episode 5)

Federal Shake-Up: Surprising Twists in Retirement, Benefits, and Workplace Life (22-28 Jun 2025, Episode 4)