Lawrence: Welcome to the Federal Workforce Roundup for 15-21 June 2025, your
essential weekly briefing on the policies and proposals shaping your career,
your benefits, and your retirement.
Whether youâre a current federal employee navigating changes in the civil service,
or a retiree keeping a close watch on your hard-earned pension and healthcare, this
is your source for the latest news from Capitol Hill and the executive branch.
Each week, we cut through the noise to bring you the critical updates on budget
negotiations, pay raises, workforce policies, and the legislative battles that
directly impact the federal community.
Let's get you up to speed on what happened this past week.
Issues That Affect Current and Retired Federal Workers
Budget Reconciliation Targets Federal Employees: Congressional
Republicans advanced a sweeping budget reconciliation package (nicknamed the
âOne Big Beautiful Billâ) with major implications for the civil service
The Senateâs draft version, released on June 13, preserves controversial
provisions forcing new federal hires to choose between giving up
merit-based civil service protections or paying substantially higher
FERS retirement contributions
Under this plan, future employees who wish to keep their appeal rights and
job protections would contribute 14.4%
of salary toward their pension (versus 9.4%
if they forfeit those rights), dramatically increasing their
cost for retirement benefits
The bill also mandates a $350 fee for Merit Systems Protection Board appeals
(refunded if the employee prevails) and orders audits of Federal Employees
Health Benefits (FEHB) family enrollments to remove ineligible participants
Notably, the Senate draft removed several House-passed retirement cuts:
it dropped provisions to calculate pensions on a âhigh-5â salary average
instead of high-3, to hike FERS contributions for current employees, and
to eliminate the FERS annuity supplement for early retirees, thereby sparing
earned benefits that had been at risk
. The Senate text still includes a far-reaching section granting the
President broad authority to reorganize or shutter federal agencies with
minimal oversight â a move NARFE warned could let the executive âdismantleâ¦
the entire federal governmentâ with limited congressional input
. Federal employee advocates are sounding alarms: NARFE President William
Shackelford criticized the new hire provisions as âconverting the civil
service into a haven for political cronies,â undermining merit-based hiring
. AFGE National President Everett Kelley likewise blasted the package
as a âbig retaliation billâ aimed at civil servants and their unions
. While pleased that the Senate rejected cuts to vested retirement benefits,
employee groups are urging the Senate to strip out the remaining anti-civil service
measures before any final bill is enacted
. Legal Block on Data Sharing (Privacy Victory): In a win for federal
employeesâ privacy, a federal court intervened to limit the new Department
of Government Efficiency (DOGE).
On June 9, a U.S.
district judge granted a preliminary injunction blocking OPM from sharing
federal personnel data with DOGE agents
. The judge found potential privacy and cybersecurity violations in how DOGE was
accessing sensitive employee information
. This order temporarily halts DOGEâs data mining of federal HR
systems pending further review.
The DOGE, a White House-created office tasked with cutting government costs,
had been aggregating federal employee data to identify âinefficiencies.â
Now, thanks to the courtâs ruling, personal data of federal workers and
retirees held by OPM is off-limits to DOGE unless stronger safeguards are in place.
Employee advocates, including NARFE, welcomed the injunction
as protecting civil servants from unwarranted intrusions.
The case underscores the ongoing tension between aggressive cost-cutting
initiatives and the rights of federal personnel â with courts
signaling that accountability and privacy cannot be ignored even amid
government reorganization efforts
. Issues That Affect Current Federal Workers
A sign marks the headquarters of the Department of Veterans
Affairs in Washington, D.C.
(February 20, 2025)
. VA and DoD Workforce Reduction Plans: Federal agencies are grappling with
steep staffing cuts under administration and congressional directives.
At the Department of Veterans Affairs (VA), leadership is moving forward
with a plan to reduce its workforce by 15% (approximately 80,000 jobs)
to return to 2019 staffing levels
. VA Secretary Doug Collins held a June 20 town hall acknowledging that âchange is
always uncomfortableâ and bluntly urged unmotivated employees to consider leaving
. Collins emphasized that front-line health care workers and benefits staff
are largely exempt from the cuts, which will instead focus on administrative
overhead and vacant positions.
The VA has already implemented an in-person work mandate (ending
pandemic-era telework) and is hiring for critical roles even
as it plans for reductions
. Unions warn, however, that slashing tens of thousands of VA jobs will
harm veteransâ services â AFGEâs Everett Kelley condemned the cuts
as a âno-holds-barred assault on veteransâ that will make veterans and
their families âsuffer unnecessarilyâ
. Meanwhile, the Pentagon is facing its own downsizing: the Department of Defense aims
to cut about 5â8% of civilian positions (~50,000 jobs) as part of a âWorkforce
Accelerationâ cost-saving initiative
. A House appropriations bill for FY 2026 not only funds a 3.8%
pay raise for military personnel, but also endorses these
civilian cuts â trimming $3.6
billion and ~45,000 DoD civilian FTEs in line with DOGEâs recommendations.
To avoid disruptive layoffs, DoD has leaned on a âdeferred resignationâ
buyout program that incentivized 22,000 employees to voluntarily leave in exchange
for continued pay through October.
However, House Democrats raised concerns about morale and readiness, unsuccessfully
proposing an amendment on June 10 to pause the VAâs mass firing plan.
With Congress signaling support, both VA and DoD are pressing ahead â making
it clear that many federal workers face uncertain job security as agencies
âright-sizeâ their payrolls in 2025.
OPM Orders Accountability and Ends Telework Flexibilities: The Office of
Personnel Management is implementing sweeping workforce policy changes
to create a âhigh-performanceâ culture across the government.
In a June 17 directive, Acting OPM Director Chuck Ezell announced new
performance management standards that apply to all non-SES employees.
Agencies must align performance ratings with measurable results and swiftly
address poor performers â including via reassignment or removal â rather than
tolerate âfailing upâ in the system.
Supervisors will receive enhanced training, and by FY 2027 all agencies
will use a unified performance appraisal timeline to ensure consistency
âFederal employees should be held to the highest standards of performance
and accountability,â Ezell stated, underscoring that the administration
seeks to reward excellence while rooting out inefficiency.
Alongside this push for accountability, OPM has reversed
many pandemic-era telework policies.
An Inspector General report released June 20 revealed ârampantâ
telework abuse under the previous administrationâs lax policies at OPM.
The IG found that over half of sampled OPM staff failed to meet in-office attendance
requirements, and many had missing or expired telework agreements on file
. In response, OPMâs leadership â acting on President Trumpâs
direction â has reinstituted strict in-office requirements.
As of March 3, all OPM employees are required to report to their official
work site full-time, effectively ending expanded telework and remote arrangements.
âThat era of telework abuse is over,â said Ezell, noting that in-person operations
have been restored âto ensure federal employees are working for the taxpayersâ.
OPM has also tightened internal controls to monitor compliance.
These moves at OPM signal a broader government-wide shift back to traditional
in-office work norms and a tougher stance on performanceâchanges that
current federal workers nationwide are now experiencing as agency policies
quickly come into line with the new administrationâs expectations.
Supreme Court Expands Pay Rights for Reservist Employees: A recent
Supreme Court ruling is poised to benefit federal employees who serve
in the Reserve or National Guard.
In Feliciano v.
Department of Transportation (decided April 30, 2025), the Court held 5â4
that federal reservists called to active duty during a national emergency are
entitled to âdifferential payâ â i.e.
the government must make up any shortfall between their federal civilian salary
and their military pay â regardless of whether their military service was
directly related to the emergency.
This clarified that reservists need not prove a âsubstantial connectionâ
between their service and the national emergency, overturning a previous
Federal Circuit interpretation.
The case was brought by Nick Feliciano, a Coast Guard reservist and FAA air
traffic controller, who had been denied such pay for long-term active
duty he performed (unrelated to the 9/11 and Iraq War emergencies).
Thanks to the Supreme Courtâs decision, many federal employees who served on
active duty orders since 2001 may now file claims to receive back pay for
salary differences during their service.
Law firms report a surge of inquiries from reservist federal workers who
were previously unaware they could be eligible for these payments.
The Merit Systems Protection Board, which handles federal pay claims, could
see a wave of new cases as a result.
While MSPB lacks a quorum at the moment, its regional offices
continue to process initial claims
. Bottom line: the high courtâs ruling reaffirms that federal agencies must
fully support employees who perform military duties, and affected feds
(past and present) should check if they are owed compensation.
OPM and agency HR offices are advising employees of their
rights in light of the decision.
Postal Service Labor Developments: In postal workforce news, another major
union contract has been secured even as leadership changes loom at USPS.
On June 17, the National Rural Letter Carriersâ Association (NRLCA)
announced that its members ratified a new three-year collective bargaining
agreement running through May 2027.
Two-thirds of rural carriers voted in favor of the deal, which provides
annual wage increases, semiannual COLAs, and measures to improve
retention of rural carrier associates.
âThis agreement is economically responsible, fair to our employees
and serves the best interest of our customers,â said Acting Postmaster
General Doug Tulino, praising the balance of rewarding workers while
upholding USPSâs service mission.
Meanwhile, the American Postal Workers Union (APWU) â which represents clerks,
maintenance staff and others â has a tentative contract on the table
and began mailing out ballots to its 200,000+ members this week.
APWU President Mark Dimondstein urged a yes vote, highlighting that the tentative
36-month agreement locks in yearly pay raises, six COLA adjustments, no-layoff
protections for newer employees, limits on outsourcing, and other gains â with
âno givebacks or concessions.â.
Voting will conclude by July 10.
(By contrast, the National Association of Letter Carriers had rejected a
proposed contract earlier this year, requiring arbitration to settle terms
including wage hikes and COLAs.).
In the midst of these negotiations, the Postal Service is preparing
for a change at the top.
The USPS Board of Governors, with President Trumpâs backing, has
selected David Steiner â a former Waste Management CEO and FedEx board
member â as the next Postmaster General, succeeding Louis DeJoy.
Steiner is expected to take office in July and has pledged to maintain USPSâs
public service mandate and independence.
Postal employees, both unionized and management, will be watching closely as
the new PMG inherits the challenges of improving delivery performance, managing
costs, and potentially fending off renewed discussions of postal privatization.
Overall, this weekâs postal news brings reassurance of labor stability
(via new contracts covering hundreds of thousands of workers) even as
the agency undergoes leadership transition at the highest level.
Issues That Affect Retired Federal Workers
Retirement Benefits Protected from Cuts: Federal retirees and employees nearing
retirement gained a measure of relief this week as congressional efforts to curtail
certain earned benefits were put on hold.
As noted above, the Senateâs reconciliation bill omitted several
provisions that would have eroded federal retirement benefits for
current workers and future retirees.
Proposals passed by the House in May â which sought to require all current
employees to pay higher contributions toward their pensions, switch the pension
calculation from the highest-3 salary years to highest-5 (reducing payouts),
and end the FERS annuity supplement for those who retire before 62 â did not make
it into the Senateâs draft legislation.
The annual COLA for 2025 (paid this past January) was 2.5%
for CSRS pensions and 2.0%
for FERSand early indicators suggest a modest COLA in 2026 if inflation
remains under control (year-to-date CPI-W figures are up about 1.9%
through May).
Retiree advocacy groups remain vigilant, however.
They note that the budget resolution Congress adopted earlier this year still
assumes significant long-term savings from federal retirement programs, which means
ideas like raising the FERS contribution rates or altering benefit formulas
could resurface in future negotiations.
For the week of June 15â21, retirees can be encouraged that no new cuts have
advanced â in fact, due to advocacy and Senate pushback, the most harmful
proposals were set aside, preserving the stability of federal annuitantsâ
pensions and bridging supplements.
Retired federal employees â and those close to retirement â will continue
to watch legislative developments closely, but this weekâs outcomes
suggest bipartisan resistance to cutting earned retirement benefits.
And thatâs a wrap on this weekâs Federal Workforce Roundup.
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.
Staying informed is your best tool.
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Thanks for tuning in.
Weâll be back next week to track the latest developments
and what they mean for you.
Until then, stay engaged and be well.