Lawrence: Welcome to The FED Weekly for 3-9 August 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.
Section 1: Issues That Affect Current and Retired Federal Workers
OPM Orders Removal of COVID-19 Vaccine Records from Federal Personnel Files
On 8 August 2025, the U.S.
Office of Personnel Management, or OPM, issued new guidance directing
all federal agencies to eliminate any record of a federal employee's COVID-19
vaccination status, prior noncompliance with vaccine mandates, or requests
for exemptions from such mandates.
This directive, issued by OPM Director Scott Kupor, is part of the Trump
Administration's broader effort to reverse what it has termed "harmful
pandemic-era policies" imposed under the Biden Administration.
Director Kupor's statement emphasized the administration's stance, noting,
"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.
Thanks to President Trump's leadership, we're making sure the
excesses of that era do not have lingering effects on federal workers".
Effective immediately, agencies are prohibited from using an individual's
vaccine history in any employment-related decision, including hiring,
promotion, discipline, or termination.
Employees have a ninety-day window to affirmatively opt out if they
wish to retain their COVID vaccine history on file; otherwise, all
vaccine-related information must be permanently removed from both physical
and electronic personnel files.
Agencies are required to certify their compliance with
this memo by 8 September 2025.
This directive aims to erase the administrative footprint of past federal
COVID-19 vaccine mandates and prevent any future employment discrimination
based on vaccination status.
Protecting Federal Employee Rights to Personnel Files Act of 2025 (H.R.
1319)
This week, Congresswoman Julia Brownley, a Democrat from California,
announced the introduction of the "Protecting Federal Employee Rights
to Personnel Files Act of 2025".
This proposed legislation is designed to prevent the Trump administration from
withholding personnel files containing critical documents from current,
separated, and retired federal employees.
The bill was introduced in direct response to numerous reports from
federal employees, particularly those who had been terminated, who faced
significant delays or outright denials in accessing their personnel files.
These files are crucial as they contain essential documents needed
for various purposes, including filing taxes, applying for new jobs,
or claiming unemployment benefits.
Many separated employees reported losing immediate access to their
electronic official personnel folders upon termination,
especially when required to return government-issued devices immediately.
The proposed legislation would mandate federal agencies to provide a separated
employee with a copy of their official personnel file, in both electronic
and physical form, no later than seven days after their date of separation.
For current employees, OPM would be required to furnish a copy
within seven days upon request.
Furthermore, any former employees who were separated prior to the bill's
enactment would be entitled to their personnel files within twenty-one
days of requesting them from OPM.
The bill has garnered significant support and is endorsed by major federal
employee unions, including the American Federation of Government Employees,
the National Federation of Federal Employees, the National Treasury Employees
Union, and the American Federation of State, County and Municipal Employees.
This proposed legislation directly addresses a critical administrative and
practical challenge faced by federal employees, particularly those undergoing
separation, ensuring timely access to vital personal and professional records.
The introduction of this bill directly addresses what is perceived as a "blatant
disregard" for federal workers by delaying or denying access to critical
personnel files, especially for those who were "unwarranted[ly] terminated".
This suggests a broader pattern of administrative actions by the
current administration that are viewed by some lawmakers and unions
as hostile or detrimental to federal employees' rights and welfare.
The bill acts as a legislative counter-measure to protect basic employee
entitlements that may have been undermined by executive actions or agency practices.
If passed, this bill would significantly enhance transparency and accountability
in federal personnel management.
It would provide a crucial safety net for employees, particularly during
periods of transition or termination, ensuring they have the necessary
documentation to secure new employment, manage finances, and access benefits.
This legislative effort highlights the ongoing tension between executive branch
authority over the federal workforce and congressional oversight aimed
at protecting civil servant rights.
Section 2: Issues That Affect Current Federal Workers
Updated Guidance on Strengthening Probationary
Periods in the Federal Service
On 7 August 2025, OPM issued updated guidance on President
Trump's Executive Order 14284, titled "Strengthening Probationary
Periods in the Federal Service".
This memo, issued by Veronica E.
Hinton, Associate Director of the U.S.
Office of Personnel Management Office of Workforce Policy and Innovation, provides
clarifications and new templates for agencies to implement the Executive Order.
Executive Order 14284, signed on 24 April 2025, established new rules
for managing probationary and trial periods in both competitive and excepted
services within the federal government.
The updated guidance clarifies several critical aspects for
current federal employees.
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.
A significant shift is that employees now bear the responsibility of
demonstrating that their continued employment is in the public interest.
Agencies are granted sole and exclusive discretion to consider four factors
when assessing an employee's fitness for continued employment and whether it is
in the public interest: the employee's performance and/or conduct, the needs
and interests of the agency, whether the employee's continued employment would
advance the organizational goals of the agency or the Government, and whether
the employee's continued employment would advance the efficiency of the service.
Furthermore, the Executive Order removes the Merit Systems Protection Board's
jurisdiction to adjudicate appeals from terminated probationary employees,
though it does allow the OPM Director to establish appeal procedures by regulation.
These new requirements apply to current employees serving on probationary or
trial periods and to new employees appointed after 23 July 2025.
Agencies are also instructed to communicate these requirements clearly
to current employees, supervisors, and human resources practitioners, and to
provide written communication to job candidates considering federal employment.
The certification to retain an employee is effective on the date the
certifying official signs the form.
Importantly, designated evaluators should ideally be at least second-line
supervisors or politically appointed officials at the Senior Executive Service
level to ensure broader organizational goals are considered in the assessment.
This updated guidance reinforces the administration's intent to
use probationary periods as a more rigorous vetting process, shifting
the burden of proof to the employee and limiting avenues for appeal.
The Executive Order and its updated guidance significantly alter the
landscape for probationary employees by removing MSPB jurisdiction and placing
the burden of proof on the employee.
This indicates a clear policy direction to enhance management's flexibility
in hiring and retention decisions, potentially making it easier to
remove employees deemed not suitable.
The removal of MSPB jurisdiction points to an effort to streamline the
termination process and reduce legal challenges, which aligns with broader
administrative goals of increasing government efficiency and accountability,
as defined by the administration.
This could lead to a more precarious initial employment period for new federal
hires, potentially impacting recruitment, especially for critical roles where
talent acquisition is already challenging.
It may also increase the importance of strong mentorship and clear performance
expectations during probationary periods, as the consequences of
not meeting expectations are now more immediate and less appealable.
Federal employee unions may find their role in protecting probationary
employees significantly curtailed, potentially shifting their focus to
advocating for clearer agency guidelines and fair implementation practices.
Appeals Court Grants Trump Administration Stay of AFGE's Preliminary Injunction
On 4 August 2025, a panel of judges from the United States Court of
Appeals for the Ninth Circuit granted the government's motion to stay,
or pause, a preliminary injunction.
This injunction had been previously issued by a federal district court judge in a
lawsuit filed by the American Federation of Government Employees, or AFGE, against
President Trump's executive order, which excludes most federal agencies
and workers from collective bargaining.
Despite this setback, AFGE has publicly vowed to continue fighting.
This development highlights the ongoing legal battle over federal
employees' collective bargaining rights.
The temporary lifting of the injunction allows the administration's executive
order restricting collective bargaining to take effect, at least for now.
This decision, even if temporary, represents a gain for the administration
in its efforts to reduce the influence of federal employee unions.
It suggests the court found the government's arguments for a stay
compelling, possibly indicating a legal pathway for the executive
order 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.
Be sure to subscribe wherever you get your podcasts, so you never miss an update.
"Hands Off Our NASA": Union Leaders Rally to Defend Space
Program from Cuts and Privatization
Also on 4 August 2025, AFGE National President Everett Kelley joined IFPTE
President Matt Biggs, federal employees, and allies outside the Smithsonian
National Air and Space Museum for a rally titled "Hands Off Our NASA".
The rally's purpose was to raise awareness and sound the alarm on what union
leaders are calling the "most dangerous assault" on NASA's mission and workforce
in the agency's history, referencing proposed cuts and privatization.
While specific details on the nature of the proposed cuts and privatization were
not provided in the available information, the rally highlights significant union
concern over the future direction and stability of the agency's workforce.
Federal unions are actively mobilizing against perceived threats
to the workforce and mission of key federal agencies like NASA.
The fact that union leaders are rallying against proposed cuts and privatization
at NASA, calling it a "dangerous assault," suggests that the administration's
broader agenda may include significant restructuring or budget reductions for
certain agencies, potentially with a lean towards private sector involvement.
Unions are perceiving this as a direct threat to job security and
the public mission of these agencies.
Such actions could lead to significant workforce disruptions, including
potential layoffs or transfers, and may impact the long-term capacity and
expertise within federal agencies.
It also signals a potential shift in the balance between public
and private sector roles in areas traditionally managed by the government.
AFGE Warns Lawmakers that USDA Reorganization Poses
Threat to Nation's Food Supply
On 4 August 2025, AFGE also reported that the Trump administration unveiled a
sweeping restructuring plan for the U.S.
Department of Agriculture, or USDA, proposing significant
reductions and relocations.
This plan immediately sparked concern among federal workers represented
by AFGE, who warn that it "poses threat to Nation's Food Supply".
Similar to the concerns raised regarding NASA, this indicates a broader trend
of administrative restructuring across federal agencies, prompting
strong union opposition due to perceived negative impacts on agency
mission and employee livelihoods.
The administration's restructuring plans for the USDA are raising
alarms among federal employees and their unions regarding potential
impacts on critical public services.
AFGE's warning that USDA reorganization, with "significant reductions and
relocations," threatens the nation's food supply implies that the
proposed reorganization is not merely administrative but could involve cuts to
personnel or operational capacities that unions believe are essential for the USDA
to fulfill its core mission, including food safety and agricultural support.
The emphasis on the "threat to Nation's Food Supply" is a strong
rhetorical move to highlight the public interest implications of
these internal government changes.
These types of reorganizations, if implemented, could lead to a loss
of institutional knowledge, reduced service delivery, and diminished
morale within the affected agencies.
It also suggests a potential re-evaluation of the scope and size
of federal government functions under the current administration, with
unions acting as key defenders of the existing structures and public services.
SSA Day of Action and EEO Victories
Further union activity this week includes the announcement on 4 August 2025 by
Social Security Workers United of an "SSA Day of Action" for 14 August.
This event aims to raise awareness about recent administration actions impacting
Social Security Administration, or SSA, workers and the services they provide
to millions of Americans each year.
Additionally, AFGE reported "Victories" where their Equal Employment
Opportunity, or EEO, attorneys have been actively "Fighting for YOU,"
protecting the civil rights of AFGE members amidst what they describe as
"relentless attacks" on federal and D.C.
government workers in 2025.
These items collectively highlight the ongoing challenges faced by federal
employees and the crucial role of unions in defending their rights and advocating
for the integrity of public services.
Federal employees, through their unions, are actively resisting
perceived administrative pressures and defending their civil rights
and the services they provide.
The SSA Day of Action addresses "administration attacks on SSA
workers and the services they provide," while EEO attorneys are
fighting "relentless attacks".
This indicates a systemic and multi-faceted pressure on federal
agencies and their workforces, extending beyond specific executive orders to
broader administrative policies or budget constraints that impact working
conditions and service delivery.
The focus on EEO victories suggests that these "attacks" may include
issues related to discrimination or fair practices within the workplace.
This environment of "relentless attacks" could contribute to increased stress,
burnout, and potentially a decline in the federal workforce's ability
to effectively deliver services.
It also underscores the crucial role of unions and legal advocacy in safeguarding
employee rights and ensuring that federal agencies can continue to serve the public
effectively amidst political shifts.
Deferred Resignation Program and Retirement Eligibility
OPM has clarified policies regarding the deferred resignation program for
2025, providing important guidance for current federal employees.
This program allows federal employees to defer their resignation,
which can impact their retirement benefits accrual and eligibility.
The guidance states that if an employee is eligible for early or normal
retirement during the deferred resignation periodâspecifically, before 30 September
2025âthey can accept deferred resignation and still retire during that period.
Importantly, employees will continue to accrue retirement benefits during
the deferred resignation period.
Should an employee elect to retire, either early or 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.
Be sure to subscribe wherever you get your podcasts, so you never miss an update.
The clarification of the interaction between deferred resignation
and retirement eligibility for 2025 suggests that the deferred
resignation program is either a new or recently emphasized initiative.
Such programs are often aimed at managing workforce transitions
or reducing personnel costs through voluntary separations.
OPM's detailed clarification is crucial to ensure employees make informed decisions,
preventing unintended consequences for their retirement benefits.
These programs can serve as a tool for agencies to manage workforce size and
composition, potentially leading to a more targeted approach to staffing needs.
For current employees, understanding these nuances is vital for strategic
career planning, especially for those nearing retirement age, as
it offers flexibility but requires careful consideration of benefit
accrual and final retirement dates.
Section 3: Issues That Affect Retired Federal Workers
FERS Retirement News Update: What's Changing in 2025?
An article updated on 5 August 2025, outlines several significant
updates for FERS retirees in 2025.
These include anticipated Cost of Living Adjustment, or COLA, increases, changes
to the FERS annuity formula, and potential updates to retirement eligibility rules.
These changes are designed to align federal retirement benefits with
current economic conditions and ensure their competitiveness, reflecting
ongoing assessments of the federal retirement system's financial
health and broader economic trends.
COLA (Cost of Living Adjustment) Updates
For FERS retirees in 2025, a higher than usual COLA increase is expected,
likely exceeding three percent.
This increase is primarily based on inflation trends and is specifically
designed to offset rising costs of living, thereby maintaining
retirees' purchasing power.
This anticipated increase will directly affect monthly annuity payments,
providing a boost to retirement income.
While the final percentage is still pending confirmation, it
is anticipated to be significant.
It is important for FERS retirees to note the specific calculation for their COLA.
FERS retirees typically receive a reduced COLA if inflation is above two percent.
For instance, if the full COLA based on the Consumer Price Index for Urban
Wage Earners and Clerical Workers, or CPI-W, is three percent, FERS retirees
might receive only two percent.
In contrast, Civil Service Retirement System, or CSRS, retirees
typically receive the full COLA.
For 2025, Social Security and CSRS annuities are expected to see a 2.5
percent COLA, while FERS annuities are expected to receive a 2.0
percent COLA.
FERS retirees can anticipate a notable increase in their annuity payments in
2025 due to expected COLA adjustments, though the full inflation rate may
not be reflected in their benefit.
This highlights a fundamental difference between FERS and CSRS retirement
systems regarding inflation protection.
The FERS COLA cap is a deliberate design feature intended to manage the long-term
financial liabilities of the FERS system.
While beneficial, it means FERS retirees may still experience a
slight erosion of purchasing power in periods of higher inflation
compared to their CSRS counterparts.
This differential treatment in COLA adjustments between FERS and CSRS
retirees is a key factor in long-term financial planning for federal employees.
It underscores the importance for FERS retirees to factor in this potential
gap when budgeting, and for current FERS employees to consider additional savings
strategies, such as maximizing Thrift Savings Plan contributions, to fully
offset inflation's impact in retirement.
Changes to the FERS Annuity Formula
Another significant update for 2025 is a slight revision
to the FERS annuity formula.
This adjustment is intended to better align with economic conditions and ensure
retirement benefits remain competitive.
Employees with thirty or more years of service may see an increase in the annuity
percentage used to calculate monthly payments, which could result in a larger
payout for long-term federal workers.
While only minor tweaks are expected, a complete overhaul of the formula is
not anticipated; rather, the changes are targeted improvements to benefit those
with extended careers in federal service.
The FERS annuity formula is being adjusted to potentially offer larger
payouts, particularly for those with extensive federal service.
The FERS annuity formula is being "slightly revised" to "better align
with economic conditions" and "ensure retirement benefits remain competitive,"
with a potential boost for those with thirty or more years of service.
This indicates an ongoing effort to ensure the FERS system remains
attractive and sustainable.
The specific targeting of long-term employees suggests a recognition of their
significant contributions and a desire to incentivize career-long federal service.
It might also be a response to recruitment and retention challenges,
aiming to make federal employment more appealing as a long-term career.
For current federal employees, this reinforces the value of extended
service under FERS, potentially encouraging longer careers.
For retirees, this adjustment, coupled with COLA, contributes to
the overall financial health of their retirement, though the "slight
revision" suggests incremental rather than revolutionary changes.
It also reflects a continuous governmental process of fine-tuning
major benefit programs in response to economic shifts and workforce needs.
Updates to Retirement Eligibility for FERS Employees
In 2025, there may be changes to the FERS retirement eligibility
rules, especially for employees with fewer than twenty years of service.
Some proposals suggest adjustments to the eligibility age and years of service
requirements in response to increasing life expectancies and the financial
health of the federal retirement system.
Potential adjustments to FERS retirement eligibility rules are on
the horizon, particularly impacting those with shorter service records.
Proposals suggest adjustments to FERS eligibility age and service years,
especially for those with less than twenty years of service, in response
to increasing life expectancies and the financial health of the system.
This signals a proactive, or reactive depending on perspective, attempt to
ensure the long-term solvency of the FERS system in the face of demographic shifts.
As people live longer, retirement benefits are paid out for more years,
increasing the system's liabilities.
Adjusting eligibility requirements is a common strategy to manage these costs.
The focus on those with fewer than twenty years of service might be an attempt
to impact future liabilities without significantly affecting those closer
to retirement under current rules.
These potential changes could significantly alter retirement
planning for current federal employees, particularly younger
workers or those considering mid-career entry into federal service.
It emphasizes the need for continuous monitoring of legislative developments
regarding federal retirement benefits, as eligibility rules are a
critical factor in personal financial planning and career decisions.
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.
Be sure to subscribe wherever you get your podcasts, so you never miss an update.
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.