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Lawrence: Welcome to the Federal Workforce
Roundup for 15-21 June 2025, your

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essential weekly briefing on the policies
and proposals shaping your career,

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your benefits, and your retirement.

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Whether you’re a current federal employee
navigating changes in the civil service,

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or a retiree keeping a close watch on your
hard-earned pension and healthcare, this

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is your source for the latest news from
Capitol Hill and the executive branch.

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Each week, we cut through the noise to
bring you the critical updates on budget

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negotiations, pay raises, workforce
policies, and the legislative battles that

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directly impact the federal community.

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Let's get you up to speed on
what happened this past week.

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Issues That Affect Current
and Retired Federal Workers

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Budget Reconciliation Targets
Federal Employees: Congressional

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Republicans advanced a sweeping budget
reconciliation package (nicknamed the

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“One Big Beautiful Bill”) with major
implications for the civil service

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The Senate’s draft version, released
on June 13, preserves controversial

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provisions forcing new federal
hires to choose between giving up

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merit-based civil service protections
or paying substantially higher

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FERS retirement contributions

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Under this plan, future employees who
wish to keep their appeal rights and

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job protections would contribute 14.4%

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of salary toward their
pension (versus 9.4%

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if they forfeit those rights),
dramatically increasing their

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cost for retirement benefits

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The bill also mandates a $350 fee for
Merit Systems Protection Board appeals

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(refunded if the employee prevails)
and orders audits of Federal Employees

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Health Benefits (FEHB) family enrollments
to remove ineligible participants

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Notably, the Senate draft removed
several House-passed retirement cuts:

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it dropped provisions to calculate
pensions on a “high-5” salary average

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instead of high-3, to hike FERS
contributions for current employees, and

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to eliminate the FERS annuity supplement
for early retirees, thereby sparing

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earned benefits that had been at risk

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. The Senate text still includes a
far-reaching section granting the

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President broad authority to reorganize
or shutter federal agencies with

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minimal oversight  – a move NARFE warned
could let the executive “dismantle…

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the entire federal government”
with limited congressional input

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.  Federal employee advocates are sounding
alarms: NARFE President William

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Shackelford criticized the new hire
provisions as “converting the civil

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service into a haven for political
cronies,” undermining merit-based hiring

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. AFGE National President Everett
Kelley likewise blasted the package

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as a “big retaliation bill” aimed
at civil servants and their unions

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. While pleased that the Senate rejected
cuts to vested retirement benefits,

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employee groups are urging the Senate to
strip out the remaining anti-civil service

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measures before any final bill is enacted

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. Legal Block on Data Sharing (Privacy
Victory): In a win for federal

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employees’ privacy, a federal court
intervened to limit the new Department

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of Government Efficiency (DOGE).

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On June 9, a U.S.

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district judge granted a preliminary
injunction blocking OPM from sharing

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federal personnel data with DOGE agents

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. The judge found potential privacy and
cybersecurity violations in how DOGE was

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accessing sensitive employee information

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. This order temporarily halts
DOGE’s data mining of federal HR

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systems pending further review.

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The DOGE, a White House-created office
tasked with cutting government costs,

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had been aggregating federal employee
data to identify “inefficiencies.”

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Now, thanks to the court’s ruling,
personal data of federal workers and

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retirees held by OPM is off-limits to DOGE
unless stronger safeguards are in place.

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Employee advocates, including
NARFE, welcomed the injunction

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as protecting civil servants
from unwarranted intrusions.

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The case underscores the ongoing
tension between aggressive cost-cutting

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initiatives and the rights of
federal personnel – with courts

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signaling that accountability and
privacy cannot be ignored even amid

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government reorganization efforts

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. Issues That Affect Current Federal Workers

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A sign marks the headquarters
of the Department of Veterans

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Affairs in Washington, D.C.

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(February 20, 2025)

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. VA and DoD Workforce Reduction Plans:
Federal agencies are grappling with

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steep staffing cuts under administration
and congressional directives.

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At the Department of Veterans Affairs
(VA), leadership is moving forward

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with a plan to reduce its workforce
by 15% (approximately 80,000 jobs)

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to return to 2019 staffing levels

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. VA Secretary Doug Collins held a June 20
town hall acknowledging that “change is

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always uncomfortable” and bluntly urged
unmotivated employees to consider leaving

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. Collins emphasized that front-line
health care workers and benefits staff

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are largely exempt from the cuts, which
will instead focus on administrative

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overhead and vacant positions.

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The VA has already implemented
an in-person work mandate (ending

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pandemic-era telework) and is
hiring for critical roles even

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as it plans for reductions

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. Unions warn, however, that slashing
tens of thousands of VA jobs will

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harm veterans’ services – AFGE’s
Everett Kelley condemned the cuts

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as a “no-holds-barred assault on
veterans” that will make veterans and

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their families “suffer unnecessarily”

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. Meanwhile, the Pentagon is facing its own
downsizing: the Department of Defense aims

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to cut about 5–8% of civilian positions
(~50,000 jobs) as part of a “Workforce

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Acceleration” cost-saving initiative

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. A House appropriations bill for
FY 2026 not only funds a 3.8%

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pay raise for military personnel,
but also endorses these

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civilian cuts – trimming $3.6

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billion and ~45,000 DoD civilian FTEs
in line with DOGE’s recommendations.

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To avoid disruptive layoffs, DoD has
leaned on a “deferred resignation”

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buyout program that incentivized 22,000
employees to voluntarily leave in exchange

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for continued pay through October.

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However, House Democrats raised concerns
about morale and readiness, unsuccessfully

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proposing an amendment on June 10
to pause the VA’s mass firing plan.

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With Congress signaling support, both
VA and DoD are pressing ahead – making

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it clear that many federal workers
face uncertain job security as agencies

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“right-size” their payrolls in 2025.

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OPM Orders Accountability and Ends
Telework Flexibilities: The Office of

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Personnel Management is implementing
sweeping workforce policy changes

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to create a “high-performance”
culture across the government.

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In a June 17 directive, Acting OPM
Director Chuck Ezell announced new

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performance management standards
that apply to all non-SES employees.

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Agencies must align performance ratings
with measurable results and swiftly

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address poor performers – including via
reassignment or removal – rather than

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tolerate “failing up” in the system.

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Supervisors will receive enhanced
training, and by FY 2027 all agencies

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will use a unified performance
appraisal timeline to ensure consistency

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“Federal employees should be held to
the highest standards of performance

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and accountability,” Ezell stated,
underscoring that the administration

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seeks to reward excellence
while rooting out inefficiency.

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Alongside this push for
accountability, OPM has reversed

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many pandemic-era telework policies.

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An Inspector General report
released June 20 revealed “rampant”

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telework abuse under the previous
administration’s lax policies at OPM.

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The IG found that over half of sampled OPM
staff failed to meet in-office attendance

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requirements, and many had missing or
expired telework agreements on file

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. In response, OPM’s leadership
– acting on President Trump’s

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direction – has reinstituted
strict in-office requirements.

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As of March 3, all OPM employees are
required to report to their official

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work site full-time, effectively ending
expanded telework and remote arrangements.

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“That era of telework abuse is over,” said
Ezell, noting that in-person operations

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have been restored “to ensure federal
employees are working for the taxpayers”.

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OPM has also tightened internal
controls to monitor compliance.

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These moves at OPM signal a broader
government-wide shift back to traditional

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in-office work norms and a tougher
stance on performance—changes that

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current federal workers nationwide are
now experiencing as agency policies

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quickly come into line with the
new administration’s expectations.

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Supreme Court Expands Pay Rights
for Reservist Employees: A recent

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Supreme Court ruling is poised to
benefit federal employees who serve

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in the Reserve or National Guard.

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In Feliciano v.

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Department of Transportation (decided
April 30, 2025), the Court held 5–4

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that federal reservists called to active
duty during a national emergency are

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entitled to “differential pay” – i.e.

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the government must make up any shortfall
between their federal civilian salary

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and their military pay – regardless
of whether their military service was

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directly related to the emergency.

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This clarified that reservists need
not prove a “substantial connection”

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between their service and the national
emergency, overturning a previous

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Federal Circuit interpretation.

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The case was brought by Nick Feliciano,
a Coast Guard reservist and FAA air

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traffic controller, who had been
denied such pay for long-term active

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duty he performed (unrelated to
the 9/11 and Iraq War emergencies).

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Thanks to the Supreme Court’s decision,
many federal employees who served on

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active duty orders since 2001 may now
file claims to receive back pay for

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salary differences during their service.

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Law firms report a surge of inquiries
from reservist federal workers who

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were previously unaware they could
be eligible for these payments.

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The Merit Systems Protection Board,
which handles federal pay claims, could

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see a wave of new cases as a result.

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While MSPB lacks a quorum at
the moment, its regional offices

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continue to process initial claims

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. Bottom line: the high court’s ruling
reaffirms that federal agencies must

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fully support employees who perform
military duties, and affected feds

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(past and present) should check
if they are owed compensation.

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OPM and agency HR offices are
advising employees of their

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rights in light of the decision.

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Postal Service Labor Developments: In
postal workforce news, another major

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union contract has been secured even
as leadership changes loom at USPS.

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On June 17, the National Rural
Letter Carriers’ Association (NRLCA)

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announced that its members ratified a
new three-year collective bargaining

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agreement running through May 2027.

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Two-thirds of rural carriers voted
in favor of the deal, which provides

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annual wage increases, semiannual
COLAs, and measures to improve

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retention of rural carrier associates.

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“This agreement is economically
responsible, fair to our employees

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and serves the best interest of our
customers,” said Acting Postmaster

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General Doug Tulino, praising the
balance of rewarding workers while

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upholding USPS’s service mission.

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Meanwhile, the American Postal Workers
Union (APWU) – which represents clerks,

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maintenance staff and others – has
a tentative contract on the table

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and began mailing out ballots to
its 200,000+ members this week.

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APWU President Mark Dimondstein urged a
yes vote, highlighting that the tentative

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36-month agreement locks in yearly pay
raises, six COLA adjustments, no-layoff

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protections for newer employees, limits
on outsourcing, and other gains – with

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“no givebacks or concessions.”.

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Voting will conclude by July 10.

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(By contrast, the National Association
of Letter Carriers had rejected a

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proposed contract earlier this year,
requiring arbitration to settle terms

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including wage hikes and COLAs.).

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In the midst of these negotiations,
the Postal Service is preparing

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for a change at the top.

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The USPS Board of Governors, with
President Trump’s backing, has

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selected David Steiner – a former
Waste Management CEO and FedEx board

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member – as the next Postmaster
General, succeeding Louis DeJoy.

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Steiner is expected to take office in
July and has pledged to maintain USPS’s

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public service mandate and independence.

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Postal employees, both unionized and
management, will be watching closely as

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the new PMG inherits the challenges of
improving delivery performance, managing

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costs, and potentially fending off renewed
discussions of postal privatization.

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Overall, this week’s postal news
brings reassurance of labor stability

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(via new contracts covering hundreds
of thousands of workers) even as

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the agency undergoes leadership
transition at the highest level.

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Issues That Affect Retired Federal Workers

00:13:33.040 --> 00:13:38.110
Retirement Benefits Protected from Cuts:
Federal retirees and employees nearing

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retirement gained a measure of relief this
week as congressional efforts to curtail

00:13:43.230 --> 00:13:45.720
certain earned benefits were put on hold.

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As noted above, the Senate’s
reconciliation bill omitted several

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provisions that would have eroded
federal retirement benefits for

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current workers and future retirees.

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Proposals passed by the House in May
– which sought to require all current

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employees to pay higher contributions
toward their pensions, switch the pension

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calculation from the highest-3 salary
years to highest-5 (reducing payouts),

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and end the FERS annuity supplement for
those who retire before 62 – did not make

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it into the Senate’s draft legislation.

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The annual COLA for 2025 (paid
this past January) was 2.5%

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for CSRS pensions and 2.0%

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for FERSand early indicators suggest
a modest COLA in 2026 if inflation

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remains under control (year-to-date
CPI-W figures are up about 1.9%

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through May).

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Retiree advocacy groups
remain vigilant, however.

00:14:41.951 --> 00:14:46.301
They note that the budget resolution
Congress adopted earlier this year still

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assumes significant long-term savings from
federal retirement programs, which means

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ideas like raising the FERS contribution
rates or altering benefit formulas

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could resurface in future negotiations.

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For the week of June 15–21, retirees
can be encouraged that no new cuts have

00:15:04.002 --> 00:15:08.601
advanced – in fact, due to advocacy
and Senate pushback, the most harmful

00:15:08.601 --> 00:15:12.891
proposals were set aside, preserving
the stability of federal annuitants’

00:15:12.982 --> 00:15:15.021
pensions and bridging supplements.

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Retired federal employees – and those
close to retirement – will continue

00:15:19.882 --> 00:15:24.141
to watch legislative developments
closely, but this week’s outcomes

00:15:24.141 --> 00:15:28.651
suggest bipartisan resistance to
cutting earned retirement benefits.

00:15:29.303 --> 00:15:32.204
And that’s a wrap on this week’s
Federal Workforce Roundup.

00:15:32.493 --> 00:15:37.103
The landscape for federal employees
and retirees is constantly shifting,

00:15:37.393 --> 00:15:41.693
with major decisions being made about
everything from pay and job security

00:15:41.983 --> 00:15:46.103
to retirement benefits and the very
structure of the civil service.

00:15:46.433 --> 00:15:48.863
Staying informed is your best tool.

00:15:49.173 --> 00:15:53.873
Be sure to subscribe wherever you get your
podcasts, so you never miss an update.

00:15:54.509 --> 00:15:55.639
Thanks for tuning in.

00:15:55.930 --> 00:15:58.660
We’ll be back next week to
track the latest developments

00:15:58.879 --> 00:16:00.119
and what they mean for you.

00:16:00.430 --> 00:16:03.259
Until then, stay engaged and be well.