WEBVTT NOTE This file was generated by Descript 00:00:00.040 --> 00:00:06.300 Lawrence: Welcome to The FED Weekly for 22-28 June 2025, your essential 00:00:06.300 --> 00:00:09.820 weekly briefing on the policies and proposals shaping your career, 00:00:10.000 --> 00:00:12.220 your benefits, and your retirement. 00:00:12.640 --> 00:00:16.720 Whether you’re a current federal employee navigating changes in the civil service, 00:00:16.960 --> 00:00:22.190 or a retiree keeping a close watch on your hard-earned pension and healthcare, this 00:00:22.190 --> 00:00:27.260 is your source for the latest news from Capitol Hill and the executive branch. 00:00:27.828 --> 00:00:32.198 Each week, we cut through the noise to bring you the critical updates on budget 00:00:32.198 --> 00:00:37.758 negotiations, pay raises, workforce policies, and the legislative battles that 00:00:37.758 --> 00:00:40.268 directly impact the federal community. 00:00:40.858 --> 00:00:43.788 Let's get you up to speed on what happened this past week. 00:00:44.360 --> 00:00:47.590 Issues That Affect Current and Retired Federal Workers 00:00:48.226 --> 00:00:52.205 During the week of June 22–28, the major stories spanning both 00:00:52.286 --> 00:00:56.536 active and retired federal workers centered on proposed legislative 00:00:56.536 --> 00:00:58.656 changes to benefits and retirement. 00:00:59.466 --> 00:01:03.666 In Congress’s budget reconciliation debate, dramatic cuts that had been 00:01:03.666 --> 00:01:07.596 proposed for federal retirement benefits were largely removed. 00:01:08.116 --> 00:01:12.596 For example, a late June draft of the Senate reconciliation text omits 00:01:12.596 --> 00:01:17.045 provisions that would have forced new hires to choose “at‑will” status 00:01:17.045 --> 00:01:21.476 or pay much higher FERS pension contributions, and does not include 00:01:21.476 --> 00:01:25.696 the House plan to eliminate the FERS annuity supplement for early retirees. 00:01:26.294 --> 00:01:30.234 These omissions mean that, for now, current employees will not suddenly 00:01:30.234 --> 00:01:34.613 owe more to their retirement funds, and future retirees will continue to 00:01:34.613 --> 00:01:38.533 receive their earned supplements (the full Social Security–bridge benefit). 00:01:39.384 --> 00:01:43.104 The Senate version also drops a controversial payroll-tax “fee” 00:01:43.104 --> 00:01:47.304 on unions, which would have affected unionized workers’ dues. 00:01:47.957 --> 00:01:52.267 In short, the worst retirement-benefit cuts in the House’s proposal (higher 00:01:52.267 --> 00:01:56.767 contributions and loss of supplements) appear off the table in this period. 00:01:57.491 --> 00:02:02.541 Federal employees (both active and retired) remain cautiously optimistic, 00:02:02.851 --> 00:02:07.082 but union and retiree groups are urging lawmakers to safeguard earned 00:02:07.082 --> 00:02:09.082 benefits in the final legislation. 00:02:09.832 --> 00:02:12.892 One piece of legislation moving in this timeframe that affects 00:02:12.892 --> 00:02:17.322 the broader federal workforce is a bipartisan House bill to modernize the 00:02:17.322 --> 00:02:19.512 federal workers’ compensation system. 00:02:19.982 --> 00:02:24.702 On June 27, the House Education and Labor Committee unanimously approved H.R. 00:02:24.702 --> 00:02:28.582 3170, the “Improving Access to Workers’ Compensation for 00:02:28.582 --> 00:02:30.382 Injured Federal Workers Act.” 00:02:31.882 --> 00:02:32.772 Sponsored by Rep. 00:02:32.902 --> 00:02:34.731 Joe Courtney (D-Conn.), 00:02:35.022 --> 00:02:38.672 this bill would revise the Federal Employees’ Compensation Act (FECA) 00:02:38.962 --> 00:02:42.012 to allow physician assistants and nurse practitioners to provide 00:02:42.012 --> 00:02:44.052 care for injured federal employees. 00:02:44.690 --> 00:02:48.450 (Previously, only physicians or chiropractors could treat most federal 00:02:48.450 --> 00:02:50.100 workers’ compensation patients.) 00:02:50.730 --> 00:02:54.329 If enacted, the bill would benefit federal employees (and potentially 00:02:54.329 --> 00:02:58.050 retirees eligible for FECA) by expanding medical provider 00:02:58.050 --> 00:03:00.030 options after on-the-job injuries. 00:03:00.519 --> 00:03:04.420 Another issue spanning both current and retired workers involves 00:03:04.420 --> 00:03:06.390 cost-of-living adjustments (COLAs). 00:03:06.890 --> 00:03:11.740 Under current law, Civil Service Retirement System (CSRS) annuities rise at 00:03:11.740 --> 00:03:16.019 full CPI, but Federal Employees Retirement System (FERS) annuities are capped: if 00:03:16.019 --> 00:03:21.970 inflation is between 2–3%, FERS gets only 2%, and if inflation exceeds 3%, 00:03:22.100 --> 00:03:24.910 FERS gets one point less than full CPI. 00:03:25.534 --> 00:03:28.703 Retiree advocates note this long-standing disparity. 00:03:29.013 --> 00:03:31.864 Indeed, several lawmakers have reintroduced the bipartisan 00:03:31.864 --> 00:03:34.084 “Equal COLA Act” (H.R. 00:03:34.084 --> 00:03:34.894 491/S. 00:03:34.894 --> 00:03:38.363 624), which would give FERS retirees the same COLA as 00:03:38.363 --> 00:03:40.733 CSRS/Social Security beneficiaries. 00:03:41.318 --> 00:03:45.988 (That bill is under consideration and has broad support in federal retiree groups.) 00:03:46.528 --> 00:03:50.598 During this week no new action was taken on COLAs, but the issue remains under 00:03:50.598 --> 00:03:56.448 discussion on Capitol Hill as active and retired FERS annuitants call for parity. 00:03:57.120 --> 00:04:02.260 In short, the main bipartisan legislative developments of late June involve 00:04:02.260 --> 00:04:06.840 retirement and benefit structures rather than day-to-day pay or workplace rules. 00:04:07.400 --> 00:04:12.130 Both current and retired workers can breathe easier that key cuts proposed 00:04:12.130 --> 00:04:16.190 in the House reconciliation plan (higher contributions and lost supplements) 00:04:16.390 --> 00:04:18.650 are not in the latest Senate draft. 00:04:19.257 --> 00:04:23.248 Retiree organizations continue to press Congress to protect all hard-earned 00:04:23.248 --> 00:04:27.538 benefits, including adjusting FERS COLAs, as the reconciliation 00:04:27.538 --> 00:04:29.198 bill heads toward Senate debate. 00:04:29.848 --> 00:04:32.248 Issues That Affect Current Federal Workers 00:04:32.854 --> 00:04:37.034 Several stories this week focused on active federal employees’ working 00:04:37.034 --> 00:04:41.433 conditions—from court rulings and agency policies to personnel rules: 00:04:42.032 --> 00:04:47.902 Union Bargaining Rights – Court Blocks Trump Order: On June 25, a San Francisco 00:04:47.902 --> 00:04:52.402 federal judge granted a nationwide preliminary injunction against President 00:04:52.402 --> 00:04:56.761 Trump’s March 2025 executive order that would have stripped collective 00:04:56.761 --> 00:04:59.152 bargaining at dozens of agencies. 00:04:59.753 --> 00:05:03.933 The judge agreed with unions that the abrupt removal of bargaining rights 00:05:04.153 --> 00:05:08.843 likely violates federal law and constitutional free speech protections. 00:05:09.503 --> 00:05:13.863 This block means hundreds of thousands of current federal employees remain 00:05:13.863 --> 00:05:17.563 entitled to negotiate working conditions through their unions. 00:05:18.199 --> 00:05:22.999 (A separate ruling in April had already blocked the order at seven 00:05:22.999 --> 00:05:26.599 large agencies; this week’s ruling covers the remaining agencies). 00:05:26.599 --> 00:05:30.199 The decision explicitly found the administration’s order was targeted 00:05:30.199 --> 00:05:34.599 at agencies deemed “hostile” to the president, further affirming that agencies 00:05:34.599 --> 00:05:36.199 cannot unilaterally terminate bargaining. 00:05:36.199 --> 00:05:38.999 (The White House has vowed to appeal.) 00:05:39.029 --> 00:05:43.809 Performance Management Overhaul: In mid-June, OPM issued sweeping 00:05:43.809 --> 00:05:47.219 new performance rules for federal agencies, and news outlets 00:05:47.219 --> 00:05:48.949 reported on the guidance this week. 00:05:49.509 --> 00:05:54.159 An Office of Personnel Management memo (published June 17) strongly urges 00:05:54.159 --> 00:05:58.159 agencies to limit how many employees receive “exceeds expectations” 00:05:58.159 --> 00:06:02.789 ratings and to move more swiftly to discipline or remove poor performers. 00:06:03.371 --> 00:06:06.711 In effect, the guidance tells managers to “make a disproportionate 00:06:06.711 --> 00:06:11.081 number of employees not exceed expectations” so that only truly 00:06:11.081 --> 00:06:13.291 exceptional work merits top scores. 00:06:13.903 --> 00:06:17.163 It also directs agencies to update their discipline policies 00:06:17.163 --> 00:06:21.073 so that “poor performers can be swiftly removed or reassigned”. 00:06:22.371 --> 00:06:26.621 In practice, this could make it easier to fire or demote underachieving 00:06:26.621 --> 00:06:30.861 employees (especially at agencies recently exempted from bargaining). 00:06:31.431 --> 00:06:36.171 Unions immediately criticized the changes as a departure from negotiated contracts. 00:06:36.651 --> 00:06:40.001 But at minimum, current workers should expect stricter performance 00:06:40.001 --> 00:06:44.951 evaluations and faster accountability processes under these new rules. 00:06:45.637 --> 00:06:50.227 Probationary Periods Rule: On June 24 the Federal Register published a final 00:06:50.227 --> 00:06:55.687 rule aligning with President Trump’s April 2025 Executive Order on probation. 00:06:56.237 --> 00:07:00.117 This rule rescinds the old probation regulations and requires 00:07:00.167 --> 00:07:04.247 agencies to actively affirm the value of a probationary employee. 00:07:04.917 --> 00:07:09.537 In other words, employees no longer become “career” by default after probation; 00:07:09.877 --> 00:07:14.097 instead, agencies must certify that retaining each probationer is in the 00:07:14.097 --> 00:07:16.207 public interest, or else terminate them. 00:07:16.820 --> 00:07:20.679 The rule explicitly removes prior barriers to ending probationers, 00:07:20.979 --> 00:07:22.710 allowing easier separations. 00:07:23.260 --> 00:07:27.090 For current employees, this means new hires must clear an extra hurdle at the 00:07:27.090 --> 00:07:32.369 end of probation, and supervisors cannot simply let probation expire automatically. 00:07:32.900 --> 00:07:35.479 The intent is to weed out poor fits earlier. 00:07:35.849 --> 00:07:40.440 All federal agencies must update their HR policies to implement this change. 00:07:41.165 --> 00:07:44.705 Probationary employees (and their unions) should be aware 00:07:44.705 --> 00:07:48.506 that extension and termination processes will now be more active. 00:07:49.126 --> 00:07:54.015 Administrative Leave Concerns: Federal News Network’s Federal Drive reported 00:07:54.015 --> 00:07:59.306 on June 25 that over 100,000 federal workers are on paid administrative 00:07:59.306 --> 00:08:01.876 leave, often for extended periods. 00:08:02.479 --> 00:08:06.119 Experts warn that this use of administrative leave far exceeds 00:08:06.119 --> 00:08:10.309 what Congress intended (max 10 workdays per year except for certain 00:08:10.309 --> 00:08:12.839 investigations) and may be unlawful. 00:08:13.479 --> 00:08:17.219 The Public Employees for Environmental Responsibility (PEER) group has even 00:08:17.219 --> 00:08:22.499 filed a complaint, noting that agencies have broadly put employees on leave (e.g. 00:08:22.499 --> 00:08:27.059 for DEI officers or RIF targets) without evidence of wrongdoing. 00:08:27.748 --> 00:08:31.578 If upheld, this issue primarily affects current employees, since 00:08:31.578 --> 00:08:33.198 they are the ones placed on leave. 00:08:33.877 --> 00:08:38.168 The takeaway is that many more active workers are effectively sidelined (on 00:08:38.168 --> 00:08:43.237 paid leave) than in the past, raising questions about due process and back pay. 00:08:43.970 --> 00:08:47.060 Furloughs and RIFs – Courts, State Department: Mass layoffs 00:08:47.060 --> 00:08:48.480 were a hot topic this week. 00:08:48.830 --> 00:08:51.530 A June 27 Supreme Court ruling (Trump v. 00:08:51.530 --> 00:08:55.400 CASA) limited courts’ power to issue nationwide injunctions. 00:08:55.988 --> 00:09:00.848 While the decision generally curtails broad injunctions, a footnote suggests it 00:09:00.848 --> 00:09:05.578 does not disturb the existing lower-court order blocking the Trump administration’s 00:09:05.578 --> 00:09:07.918 plan for agency-wide layoffs. 00:09:08.728 --> 00:09:12.518 In practical terms, federal employees currently have some protection 00:09:12.518 --> 00:09:16.867 against the administration’s proposed workforce cuts, at least temporarily. 00:09:17.608 --> 00:09:21.308 In line with that, the State Department’s massive RIF (nearly 00:09:21.308 --> 00:09:23.997 3,400 jobs) remains on hold. 00:09:24.518 --> 00:09:28.298 In fact, State has been restructuring how it would conduct those layoffs. 00:09:28.999 --> 00:09:32.770 State recently rewrote its RIF rules to create dozens of new “competitive 00:09:32.770 --> 00:09:34.969 areas” (by post, bureau, etc.) 00:09:35.130 --> 00:09:36.849 to make targeted layoffs easier. 00:09:37.461 --> 00:09:42.451 State officials say they still intend to reduce ~1,900 employees, but a 00:09:42.451 --> 00:09:44.401 judge has barred the cuts for now. 00:09:44.811 --> 00:09:49.752 So current State Department workers face uncertainty: the process has been revamped 00:09:49.752 --> 00:09:54.961 behind the scenes, but legal blocks (and upcoming Supreme Court action) mean any 00:09:54.961 --> 00:09:57.481 actual layoffs are paused for the moment. 00:09:58.405 --> 00:10:01.075 Other Developments: A few other announcements during 00:10:01.075 --> 00:10:02.195 the week are noteworthy. 00:10:02.745 --> 00:10:06.805 The Defense Department’s FY2026 budget proposal (marked 00:10:06.805 --> 00:10:10.065 up June 27) includes a 3.8% 00:10:10.065 --> 00:10:14.425 military pay raise and quality-of-life funding, but that concerns uniformed 00:10:14.425 --> 00:10:16.835 personnel more than civilian employees. 00:10:17.797 --> 00:10:21.208 The GSA issued its routine summer “electricity curtailment” 00:10:21.238 --> 00:10:23.517 alert (asking agencies in D.C. 00:10:23.517 --> 00:10:27.067 to conserve power due to a heat wave) – a minor energy-savings 00:10:27.117 --> 00:10:29.127 notice rather than a personnel issue. 00:10:29.657 --> 00:10:33.297 In short, the most substantive news for active federal employees in 00:10:33.297 --> 00:10:38.047 late June centers on personnel rules (performance and probation), legal 00:10:38.047 --> 00:10:42.468 fights over layoffs and unions, and some legislative fixes (workers’ comp). 00:10:43.167 --> 00:10:47.428 Key Legislation Affecting Current Employees: Aside from the reconciliation 00:10:47.428 --> 00:10:51.548 measure (see Section 1), the only specific bill moving was H.R. 00:10:51.548 --> 00:10:53.387 3170 (workers’ comp). 00:10:54.002 --> 00:10:56.552 There was no new bill on pay or telework. 00:10:56.972 --> 00:11:00.742 However, several bills are in the works that could affect current workers: 00:11:01.346 --> 00:11:04.046 The Federal Employee Train Transportation Act (H.R. 00:11:04.046 --> 00:11:09.136 725), for example, was introduced in May to guarantee rail pass benefits 00:11:09.426 --> 00:11:11.006 (it awaits committee action). 00:11:11.734 --> 00:11:15.724 Proposals on expanding child care or leave for federal workers have 00:11:15.724 --> 00:11:19.434 been floated in other Congresses, but none advanced this week. 00:11:20.020 --> 00:11:22.600 Issues That Affect Retired Federal Workers 00:11:23.184 --> 00:11:26.664 Late June brought no immediate changes to veterans’ pensions or 00:11:26.664 --> 00:11:31.554 retiree-specific benefits, but retirees closely watched Congressional actions. 00:11:31.974 --> 00:11:36.274 The House-passed reconciliation bill had threatened to cut retiree income by 00:11:36.274 --> 00:11:40.794 eliminating the FERS annuity supplement for early retirees and switching from 00:11:40.794 --> 00:11:44.184 a “high-3” to “high-5” salary basis. 00:11:44.862 --> 00:11:49.272 As noted above, those provisions have been removed from the latest Senate draft. 00:11:49.782 --> 00:11:53.622 If the Senate language holds, current and future retirees will 00:11:53.622 --> 00:11:57.852 continue to receive their full earned pension supplements and retire under 00:11:57.852 --> 00:12:00.612 the familiar high-3 calculation. 00:12:01.432 --> 00:12:07.002 Retiree groups had loudly protested the proposed cuts – NARFE warned that clawing 00:12:07.002 --> 00:12:11.372 back these benefits would violate workers’ earned compensation promises – and this 00:12:11.372 --> 00:12:15.752 week’s developments mean those worst fears did not materialize, at least for now. 00:12:17.432 --> 00:12:21.602 Beyond the reconciliation debate, the main retiree-focused legislative news 00:12:21.602 --> 00:12:23.462 involves cost-of-living adjustments. 00:12:23.992 --> 00:12:28.398 Supporters of FERS annuitants continue pushing the Equal COLA Act (H.R. 00:12:28.398 --> 00:12:29.145 491/S. 00:12:29.145 --> 00:12:33.102 624), which would remove the 2%-cap penalty and give FERS 00:12:33.102 --> 00:12:35.262 retirees the full CPI adjustment. 00:12:35.930 --> 00:12:37.980 Although that bill has been introduced by Rep. 00:12:37.980 --> 00:12:39.940 Gerry Connolly and Sen. 00:12:39.940 --> 00:12:43.270 Alex Padilla, it has not advanced out of committee yet. 00:12:43.880 --> 00:12:47.960 In the week of June 22–28 there was no Congressional action on it, but 00:12:47.960 --> 00:12:52.720 advocacy groups (like NARFE) were publicizing the need for equal COLAs. 00:12:53.408 --> 00:12:56.818 Retirees hoping for COLA reform will be watching whether that bill 00:12:56.818 --> 00:12:58.648 gains momentum later this summer. 00:12:59.528 --> 00:13:03.278 Another issue on retirees’ radar is retiree health insurance. 00:13:03.718 --> 00:13:06.948 Congress has not proposed any new changes to the Federal Employees 00:13:06.948 --> 00:13:11.348 Health Benefits (FEHB) or other retiree health programs during this week. 00:13:11.838 --> 00:13:17.928 By law, FEHB premiums for 2026 will be set during open season this fall, and no 00:13:17.928 --> 00:13:19.908 news indicates anything new this June. 00:13:20.388 --> 00:13:24.008 Similarly, premiums for the older Preferred Provider (PPO) health 00:13:24.008 --> 00:13:28.778 plan (PSHB) were recently updated, with average increases of 10.1% 00:13:28.778 --> 00:13:32.458 in government contributions for FEHB and 5.1% 00:13:32.458 --> 00:13:35.948 for PSHB (as per an OPM release earlier this year). 00:13:36.518 --> 00:13:40.558 No late-June announcements changed these; retirees simply prepare to see those 00:13:40.558 --> 00:13:42.888 premium changes in December paychecks. 00:13:43.368 --> 00:13:47.438 In summary, retirees got relief in late June insofar as proposed 00:13:47.438 --> 00:13:49.368 retirement benefit cuts were shelved. 00:13:49.398 --> 00:13:54.068 The Senate’s draft reconciliation bill as of June 28 retains the FERS 00:13:54.068 --> 00:13:58.598 supplement and the high-3 formula, meaning current annuitants and soon-to-be 00:13:58.598 --> 00:14:01.098 annuitants face no surprise reductions. 00:14:01.608 --> 00:14:05.038 At the same time, Congress is hearing continued calls (from 00:14:05.038 --> 00:14:07.358 NARFE, Federal Retiree Board, etc.) 00:14:07.678 --> 00:14:10.518 to protect retirement earnings and consider bipartisan 00:14:10.518 --> 00:14:12.908 proposals like the Equal COLA Act 00:14:13.526 --> 00:14:16.756 No other retiree-specific legislation passed this week. 00:14:17.226 --> 00:14:21.866 Retired federal employees and their advocates will remain vigilant, especially 00:14:21.866 --> 00:14:26.546 once a final reconciliation bill is actually debated on the Senate floor. 00:14:27.216 --> 00:14:30.426 And that’s a wrap on this week’s Federal Workforce Roundup. 00:14:30.856 --> 00:14:35.256 The landscape for federal employees and retirees is constantly shifting, 00:14:35.506 --> 00:14:39.576 with major decisions being made about everything from pay and job security 00:14:39.726 --> 00:14:43.786 to retirement benefits and the very structure of the civil service. 00:14:44.226 --> 00:14:46.786 Staying informed is your best tool. 00:14:47.186 --> 00:14:51.786 Be sure to subscribe wherever you get your podcasts, so you never miss an update. 00:14:52.546 --> 00:14:53.626 Thanks for tuning in. 00:14:53.626 --> 00:14:56.426 We’ll be back next week to track the latest developments 00:14:56.676 --> 00:14:57.836 and what they mean for you. 00:14:58.216 --> 00:15:01.396 Until then, stay engaged and be well.