WEBVTT NOTE This file was generated by Descript 00:00:00.039 --> 00:00:06.309 Lawrence: Welcome to The FED Weekly for 6-12 July 2025, your essential 00:00:06.309 --> 00:00:10.199 weekly briefing on the policies and proposals shaping your career, 00:00:10.489 --> 00:00:12.619 your benefits, and your retirement. 00:00:13.470 --> 00:00:17.149 Whether you’re a current federal employee navigating changes in the civil service, 00:00:17.510 --> 00:00:22.420 or a retiree keeping a close watch on your hard-earned pension and healthcare, this 00:00:22.420 --> 00:00:26.959 is your source for the latest news from Capitol Hill and the executive branch. 00:00:27.539 --> 00:00:31.929 Each week, we cut through the noise to bring you the critical updates on budget 00:00:31.929 --> 00:00:37.590 negotiations, pay raises, workforce policies, and the legislative battles that 00:00:37.590 --> 00:00:39.819 directly impact the federal community. 00:00:40.329 --> 00:00:43.300 Let's get you up to speed on what happened this past week. 00:00:44.058 --> 00:00:49.377 The second week of July 2025 marked a period of seismic shifts for the 00:00:49.377 --> 00:00:53.657 United States federal workforce, delivering a series of transformative 00:00:53.657 --> 00:00:57.928 events that will reverberate through every agency and impact the 00:00:57.928 --> 00:01:00.077 careers and retirements of millions. 00:01:01.067 --> 00:01:04.977 Within a few short days, the Supreme Court unleashed the potential for mass 00:01:04.977 --> 00:01:09.337 layoffs, a new director was confirmed to lead the Office of Personnel Management 00:01:09.337 --> 00:01:13.717 (OPM) with a mandate for change, and the passage of a major budget bill 00:01:13.878 --> 00:01:19.938 solidified both new benefit rules and the high probability of a 2026 pay freeze. 00:01:20.647 --> 00:01:24.037 These developments, occurring nearly in unison, represent more than a 00:01:24.037 --> 00:01:28.197 collection of disparate news items; they signal a coordinated and pivotal 00:01:28.197 --> 00:01:32.848 moment in a multi-front effort to fundamentally reshape the U.S. 00:01:32.848 --> 00:01:36.548 civil service, altering the landscape of federal employment for both 00:01:36.548 --> 00:01:38.838 current and retired personnel. 00:01:39.809 --> 00:01:44.019 Section 1: Issues That Affect Current and Retired Federal Workers 00:01:44.626 --> 00:01:48.536 This section analyzes developments impacting the entire federal 00:01:48.536 --> 00:01:53.265 community, from financial benefits and healthcare costs to the leadership 00:01:53.265 --> 00:01:57.136 and data infrastructure of the Office of Personnel Management. 00:01:57.753 --> 00:02:00.573 The "One Big Beautiful Bill Act" (OBBB) Signed into Law: 00:02:00.803 --> 00:02:02.894 A Mixed Bag of Benefit Changes 00:02:03.581 --> 00:02:09.282 On July 4, 2025, President Trump signed the "One Big Beautiful Bill Act" 00:02:09.562 --> 00:02:15.531 (OBBB) into law, concluding a period of intense anxiety for federal employees 00:02:15.531 --> 00:02:19.701 and retirees who had been bracing for severe cuts to their benefits. 00:02:20.582 --> 00:02:24.052 While earlier versions of the legislation contained proposals that would have 00:02:24.052 --> 00:02:28.152 dramatically altered the federal retirement system, the final version 00:02:28.152 --> 00:02:31.842 that passed the House and Senate was stripped of these most controversial 00:02:31.842 --> 00:02:36.061 provisions, largely due to procedural challenges under the Senate's Byrd 00:02:36.061 --> 00:02:40.792 Rule, which limits what can be included in a budget reconciliation bill. 00:02:41.411 --> 00:02:45.302 Instead of cuts, the final law delivered several benefit enhancements, 00:02:45.591 --> 00:02:49.731 primarily focused on expanding the use and availability of tax-advantaged 00:02:49.981 --> 00:02:51.531 health and savings accounts. 00:02:52.092 --> 00:02:53.542 Key provisions include: 00:02:54.127 --> 00:02:58.247 Health Savings Account (HSA) Expansions: The OBBB makes three 00:02:58.247 --> 00:03:00.238 significant changes to HSAs. 00:03:00.508 --> 00:03:04.188 First, it permanently allows high-deductible health plans (HDHPs) 00:03:04.188 --> 00:03:08.228 to cover telehealth services before the plan's deductible is met, a popular 00:03:08.228 --> 00:03:10.058 provision from the pandemic era. 00:03:10.518 --> 00:03:14.407 Second, it expands HSA eligibility by automatically treating all 00:03:14.407 --> 00:03:17.598 Bronze and Catastrophic health plans available on the individual 00:03:17.598 --> 00:03:20.358 market exchange as qualified HDHPs. 00:03:20.868 --> 00:03:25.247 Third, starting in 2026, it clarifies that participation in a Direct 00:03:25.247 --> 00:03:29.678 Primary Care (DPC) arrangement does not disqualify an individual from 00:03:29.678 --> 00:03:34.757 contributing to an HSA, and it makes DPC fees a qualified medical expense. 00:03:35.414 --> 00:03:40.333 Dependent Care FSA Increase: Beginning in 2026, the annual contribution 00:03:40.333 --> 00:03:44.593 limit for Dependent Care Flexible Spending Accounts (FSAs) will 00:03:44.593 --> 00:03:47.994 increase from $5,000 to $7,500. 00:03:48.664 --> 00:03:51.413 This is the first permanent increase to the limit since 00:03:51.413 --> 00:03:53.493 it was established in 1986. 00:03:54.637 --> 00:03:58.108 Permanent Student Loan Repayment Assistance: The law makes permanent 00:03:58.108 --> 00:04:03.887 a provision allowing employers to provide up to $5,250 annually in 00:04:03.887 --> 00:04:08.267 tax-free student loan repayment assistance to employees under a section 00:04:08.267 --> 00:04:11.007 127 educational assistance program. 00:04:11.517 --> 00:04:17.038 The $5,250 limit will also be indexed for inflation starting in 2026. 00:04:17.803 --> 00:04:21.383 The relief for many in the federal community comes from the provisions that 00:04:21.383 --> 00:04:26.854 were ultimately excluded from the bill: Increase required contributions from 0.8% 00:04:26.854 --> 00:04:29.224 of salary to 4.4% 00:04:29.224 --> 00:04:34.653 for most FERS employees, Eliminate the SRS for most new retirees, affecting 00:04:34.653 --> 00:04:39.843 those who retire before age 62, and Change the basis of the annuity calculation 00:04:39.843 --> 00:04:43.913 from an employee's highest three years of salary to their highest five. 00:04:44.631 --> 00:04:48.861 While employees dodged these cuts, the legislative process itself 00:04:48.861 --> 00:04:51.131 reveals a clear strategic direction. 00:04:51.541 --> 00:04:55.781 The administration was able to achieve a legislative victory with benefit 00:04:55.781 --> 00:05:00.012 enhancements while simultaneously pursuing its workforce reduction goals 00:05:00.342 --> 00:05:02.331 through other, more powerful channels. 00:05:03.031 --> 00:05:06.942 Thrift Savings Plan (TSP) Updates: Fund Changes and Future Features 00:05:07.554 --> 00:05:12.574 The Thrift Savings Plan (TSP) implemented several key changes at the end of June and 00:05:12.574 --> 00:05:14.913 provided updates on future developments. 00:05:15.404 --> 00:05:21.733 Effective June 30, 2025, the TSP introduced the new L 2075 Fund, 00:05:21.993 --> 00:05:25.473 designed for participants who plan to begin withdrawing from their 00:05:25.473 --> 00:05:27.844 accounts around the year 2075. 00:05:28.313 --> 00:05:33.534 On the same date, the L 2025 Fund reached its target date and was consequently 00:05:33.534 --> 00:05:38.633 retired, with all assets automatically rolled into the L Income Fund, which 00:05:38.633 --> 00:05:42.553 is designed for capital preservation for those already in retirement. 00:05:43.275 --> 00:05:46.585 Looking ahead, the TSP is preparing to launch a significant 00:05:46.585 --> 00:05:51.765 new feature in January 2026: an in-plan Roth conversion option. 00:05:52.156 --> 00:05:55.265 This will allow participants to convert their traditional, pre-tax 00:05:55.265 --> 00:06:00.686 TSP funds into the Roth TSP without having to transfer the money out of 00:06:00.686 --> 00:06:04.766 the plan, offering greater flexibility for tax planning in retirement. 00:06:05.413 --> 00:06:10.083 The TSP also reminded participants of changes for the 2025 tax year 00:06:10.344 --> 00:06:12.253 stemming from the SECURE 2.0 00:06:12.253 --> 00:06:12.644 Act. 00:06:13.333 --> 00:06:17.774 A new, higher catch-up contribution limit is now available for participants 00:06:17.774 --> 00:06:22.013 who are aged 60, 61, 62, and 63. 00:06:22.574 --> 00:06:26.494 Administratively, participants can expect their second quarter 2025 00:06:26.494 --> 00:06:31.543 statements, covering account activity from April 1 through June 30, to be 00:06:31.543 --> 00:06:34.543 available online by the end of July 2025. 00:06:35.155 --> 00:06:38.895 Federal Employees Health Benefits (FEHB) Program: Navigating Steep 00:06:38.895 --> 00:06:40.876 Premium Hikes and New Coverage 00:06:41.429 --> 00:06:45.380 Current and retired federal employees enrolled in the Federal Employees 00:06:45.380 --> 00:06:49.759 Health Benefits (FEHB) program are facing the largest premium increase 00:06:49.759 --> 00:06:52.129 in nearly two decades for 2025. 00:06:52.610 --> 00:06:55.939 Premiums are set to rise by an average of 13.5%, 00:06:56.229 --> 00:06:59.600 which translates to an additional $26.10 00:06:59.680 --> 00:07:03.719 per biweekly paycheck for the average non-postal employee or annuitant. 00:07:04.740 --> 00:07:09.400 OPM has attributed the steep hike to several factors, including higher prices 00:07:09.400 --> 00:07:14.019 charged by healthcare providers, increased utilization of certain prescription 00:07:14.019 --> 00:07:18.800 drugs, and a rise in spending on outpatient services and behavioral health. 00:07:19.798 --> 00:07:22.978 Despite the cost increase, OPM has mandated expanded 00:07:22.978 --> 00:07:25.577 coverage in key areas for 2025. 00:07:26.287 --> 00:07:30.437 All FEHB enrollees will now have access to multiple nationwide plans 00:07:30.437 --> 00:07:34.147 that offer comprehensive coverage for in vitro fertilization (IVF). 00:07:34.607 --> 00:07:39.297 Additionally, all health carriers will be required to cover at least one GLP-1 class 00:07:39.418 --> 00:07:44.967 anti-obesity drug, such as Wegovy, as well as other oral anti-obesity medications. 00:07:45.627 --> 00:07:49.548 For federal annuitants, OPM is continuing to strongly encourage the 00:07:49.548 --> 00:07:53.708 integration of Medicare Advantage (MA) plans within the FEHB program. 00:07:54.208 --> 00:07:58.658 These plans, known as Employer Group Waiver Plans (EGWPs), are designed 00:07:58.658 --> 00:08:02.928 specifically for federal retirees and can significantly reduce or 00:08:02.928 --> 00:08:07.108 even eliminate out-of-pocket costs for hospital and medical services. 00:08:07.498 --> 00:08:11.328 Many of these plans also reimburse enrollees for their Medicare Part 00:08:11.328 --> 00:08:14.848 B premiums, a feature that has fundamentally changed the financial 00:08:14.848 --> 00:08:20.398 calculation for retirees deciding whether to enroll in Part B at age 65. 00:08:21.062 --> 00:08:25.642 New Leadership and Data Transparency at the Office of Personnel Management (OPM) 00:08:26.399 --> 00:08:29.429 The week saw significant developments at the federal government's 00:08:29.429 --> 00:08:31.370 central human resources agency. 00:08:31.809 --> 00:08:37.610 On July 9, 2025, the Senate confirmed Scott Kupor, a longtime venture capital 00:08:37.610 --> 00:08:39.870 executive, as the new Director of OPM. 00:08:40.679 --> 00:08:45.189 The confirmation vote was a near party-line 49-46, signaling the 00:08:45.189 --> 00:08:50.269 contentious nature of his nomination and the central role OPM is expected to play 00:08:50.269 --> 00:08:52.409 in the administration's workforce agenda. 00:08:52.998 --> 00:08:58.038 Earlier in the month, on July 1, OPM announced a major overhaul of its 00:08:58.038 --> 00:09:03.048 FedScope data platform, a key public resource for federal workforce statistics. 00:09:03.658 --> 00:09:09.017 As part of the announcement, OPM released updated data through March 31, 2025, 00:09:09.468 --> 00:09:13.257 providing the first official snapshot of the administration's efforts to 00:09:13.257 --> 00:09:15.558 "right-size" the federal bureaucracy. 00:09:16.318 --> 00:09:21.517 The data showed a net reduction of over 23,000 federal civilian employees between 00:09:21.517 --> 00:09:25.867 September 30, 2024, and March 31, 2025. 00:09:26.817 --> 00:09:31.058 This move toward greater data transparency is positioned as a way to track 00:09:31.058 --> 00:09:35.547 progress on streamlining government, but it also provides the statistical 00:09:35.547 --> 00:09:39.607 foundation for the administration's ongoing workforce reduction initiatives. 00:09:40.191 --> 00:09:43.592 Section 2: Issues That Affect Retired Federal Workers 00:09:44.250 --> 00:09:48.549 2026 Cost-of-Living Adjustment (COLA) Forecast: A Widening Gap 00:09:49.227 --> 00:09:53.407 Federal retirees are closely watching the forecast for the 2026 cost-of-living 00:09:53.407 --> 00:09:58.537 adjustment (COLA), which dictates the annual increase in their annuity payments. 00:09:59.268 --> 00:10:06.088 As of June 2025, the projection for the 2026 COLA stands at 2.5%. 00:10:06.657 --> 00:10:09.948 This figure is based on year-over-year inflation as measured by the Consumer 00:10:09.948 --> 00:10:14.397 Price Index for Urban Wage Earners and Clerical Workers (CPI-W). 00:10:14.518 --> 00:10:18.688 The final COLA will be determined by the average CPI-W from the third quarter 00:10:18.688 --> 00:10:22.028 (July, August, and September) of 2025. 00:10:22.659 --> 00:10:26.010 However, not all federal retirees will receive the same adjustment. 00:10:26.799 --> 00:10:30.299 A structural difference between the two main retirement systems creates 00:10:30.299 --> 00:10:34.640 a significant disparity, particularly in times of moderate inflation. 00:10:35.170 --> 00:10:39.620 This is often referred to as the "FERS COLA penalty" or "diet COLA". 00:10:40.223 --> 00:10:42.943 This formula means that if the current 2.5% 00:10:42.943 --> 00:10:48.213 forecast for 2026 holds, CSRS retirees will receive a 2.5% 00:10:48.213 --> 00:10:52.184 increase, while eligible FERS retirees will receive only 2%. 00:10:52.883 --> 00:10:56.534 This continues a trend from 2025, when the 2.5% 00:10:56.534 --> 00:11:01.034 COLA also resulted in a 2% adjustment for the FERS population. 00:11:01.634 --> 00:11:05.583 Over time, this compounding difference erodes the purchasing power of FERS 00:11:05.583 --> 00:11:09.263 annuities compared to their CSRS counterparts and Social Security 00:11:09.263 --> 00:11:11.393 benefits, which receive the full COLA. 00:11:11.995 --> 00:11:14.156 Legislative Watch: The Equal COLA Act 00:11:14.786 --> 00:11:18.666 In an effort to address this disparity, the Equal COLA Act was 00:11:18.666 --> 00:11:22.315 introduced in Congress by the late Representative Gerry Connolly. 00:11:23.046 --> 00:11:27.275 The bill's sole purpose is to eliminate the FERS COLA penalty and ensure that 00:11:27.275 --> 00:11:32.416 FERS retirees receive the same full cost-of-living adjustment as CSRS retirees 00:11:32.486 --> 00:11:34.615 and Social Security beneficiaries. 00:11:35.846 --> 00:11:39.965 While endorsed by federal employee unions, the bill remains in committee 00:11:40.106 --> 00:11:43.836 and its prospects for passage are uncertain, leaving FERS retirees 00:11:43.836 --> 00:11:45.826 subject to the current tiered formula. 00:11:46.393 --> 00:11:50.304 The Paradox of Retirement Processing: Modernization Meets Gridlock 00:11:50.911 --> 00:11:54.701 Even as OPM moves to modernize its systems, new retirees are 00:11:54.701 --> 00:11:56.292 facing significant delays. 00:11:56.861 --> 00:12:01.161 OPM has mandated a full transition to a digital retirement system, and as 00:12:01.161 --> 00:12:06.332 of July 15, 2025, it will no longer accept paper retirement applications. 00:12:06.821 --> 00:12:10.441 All agencies must now submit retirement cases electronically 00:12:10.732 --> 00:12:12.591 through OPM's online portal. 00:12:13.111 --> 00:12:17.562 This initiative is designed to streamline a notoriously slow and paper-based process 00:12:17.931 --> 00:12:20.292 that has been plagued by delays for years. 00:12:21.027 --> 00:12:24.168 Ironically, this push for efficiency is occurring at a time of 00:12:24.267 --> 00:12:26.268 unprecedented strain on the system. 00:12:26.897 --> 00:12:33.097 OPM's retirement claims backlog surged by 22% in June 2025, reaching its 00:12:33.097 --> 00:12:35.397 highest mid-year level in six years. 00:12:36.137 --> 00:12:41.598 This is being driven by a significant increase in retirements; over 33,500 00:12:41.598 --> 00:12:46.578 federal employees retired in the first quarter of 2025 alone, a 12% 00:12:46.578 --> 00:12:50.738 increase from the previous year, as many choose to leave amid the uncertain 00:12:50.738 --> 00:12:52.748 political and professional environment. 00:12:53.778 --> 00:12:57.938 The result is a "double bind" for new annuitants: they are exiting federal 00:12:57.938 --> 00:13:02.848 service into a retirement system where their future annuity payments are 00:13:02.848 --> 00:13:08.118 structurally designed to lag inflation, and their entry into that system is 00:13:08.118 --> 00:13:12.548 likely to be met with processing delays that can leave them waiting up to 64 00:13:12.548 --> 00:13:14.397 days for their first pension payment. 00:13:15.442 --> 00:13:18.721 Section 3: Issues That Affect Current Federal Workers 00:13:19.315 --> 00:13:22.625 The Dam Breaks: Supreme Court Greenlights Mass Layoffs (RIFs) 00:13:23.247 --> 00:13:29.077 On July 8, 2025, the Supreme Court delivered a landmark decision that cleared 00:13:29.077 --> 00:13:34.367 the way for the Trump administration to resume large-scale agency reorganizations 00:13:34.598 --> 00:13:36.548 and Reductions-in-Force (RIFs). 00:13:37.197 --> 00:13:40.988 The ruling reversed a lower court injunction that had barred these mass 00:13:40.988 --> 00:13:45.308 layoff actions, meaning that dozens of RIFs that had been put on hold 00:13:45.308 --> 00:13:47.537 across the government can now proceed. 00:13:48.169 --> 00:13:52.230 The decision was met with immediate alarm from federal employee advocates 00:13:52.230 --> 00:13:53.670 and some members of Congress. 00:13:54.210 --> 00:13:59.719 On July 11, Representative Don Beyer led a group of 74 House members in 00:13:59.719 --> 00:14:04.570 sending a letter to the administration, urging it to halt any planned firings. 00:14:05.250 --> 00:14:08.570 The lawmakers argued that the Supreme Court's decision was based on 00:14:08.570 --> 00:14:13.189 procedural grounds and did not rule on the underlying legality of the 00:14:13.189 --> 00:14:17.560 RIF plans themselves, which are still being challenged in lower courts. 00:14:17.990 --> 00:14:21.610 They warned that proceeding with firings would be premature and 00:14:21.610 --> 00:14:25.399 could create chaos if the plans are later found to be unlawful. 00:14:26.390 --> 00:14:31.020 While the ruling applies government-wide, agencies that had previously announced 00:14:31.020 --> 00:14:35.450 or prepared for major cuts are now expected to move forward, including 00:14:35.450 --> 00:14:39.880 the Social Security Administration, Department of Defense, IRS, and 00:14:39.880 --> 00:14:41.599 Department of Veterans Affairs. 00:14:42.210 --> 00:14:46.819 The Big Chill: A 2026 Federal Pay Freeze Appears All But Certain 00:14:47.403 --> 00:14:51.133 The financial outlook for current federal employees grew colder this 00:14:51.133 --> 00:14:56.204 week, as a pay freeze for 2026 now appears to be a near certainty. 00:14:57.074 --> 00:15:00.973 The OBBB, the major budget package signed into law, passed without any 00:15:00.973 --> 00:15:04.103 provision for a 2026 civilian pay raise. 00:15:05.023 --> 00:15:09.454 This omission, combined with President Trump's fiscal year 2026 budget 00:15:09.454 --> 00:15:13.823 proposal that explicitly called for a pay freeze for civilian employees, 00:15:13.853 --> 00:15:18.073 has created a clear path toward a zero percent across-the-board increase. 00:15:18.682 --> 00:15:23.092 This stands in stark contrast to the Federal Adjustment of Income Rates (FAIR) 00:15:23.092 --> 00:15:28.611 Act, a bill introduced by congressional Democrats that proposed an average 4.3% 00:15:28.652 --> 00:15:30.772 pay raise for 2026. 00:15:31.361 --> 00:15:35.502 However, the FAIR Act has never been enacted into law and is not expected 00:15:35.502 --> 00:15:37.162 to advance in the current Congress. 00:15:37.472 --> 00:15:40.271 There may be a small silver lining for some employees. 00:15:40.652 --> 00:15:44.951 Even with a 0% across-the-board freeze, there will likely be a minor 00:15:44.951 --> 00:15:47.922 average pay increase of around 0.5% 00:15:48.082 --> 00:15:53.071 due to annual adjustments in locality pay rates, which are calculated separately. 00:15:53.790 --> 00:15:57.879 OPM's Performance Management Revolution: A New Era of Accountability 00:15:58.466 --> 00:16:02.265 Concurrent with the threat of layoffs, the administration is moving to make 00:16:02.265 --> 00:16:06.535 it easier to discipline and remove employees for performance reasons. 00:16:07.016 --> 00:16:13.495 A sweeping memorandum issued by OPM on June 17, 2025, completely overhauls 00:16:13.495 --> 00:16:18.016 the performance management system for all non-senior federal employees. 00:16:18.625 --> 00:16:21.926 The stated goal is to create a "high-performance culture," but the 00:16:21.926 --> 00:16:26.225 practical effect is to weaken job protections and expedite removals. 00:16:26.891 --> 00:16:28.861 Key mandates from the memo include: 00:16:29.455 --> 00:16:33.756 Quicker Firings: The memo encourages agencies to shorten the duration of 00:16:33.756 --> 00:16:39.855 Performance Improvement Plans (PIPs) to just 30 days and to use Chapter 75 adverse 00:16:39.855 --> 00:16:44.476 action procedures, which do not require a PIP, to address performance issues. 00:16:45.095 --> 00:16:50.476 Stricter Standards: It directs agencies to end "performance rating inflation" by 00:16:50.476 --> 00:16:54.985 making it harder to achieve "Outstanding" ratings and potentially implementing 00:16:54.985 --> 00:16:57.025 a forced distribution of ratings. 00:16:57.709 --> 00:17:02.719 "Schedule Policy/Career": The memo highlights a new category of excepted 00:17:02.719 --> 00:17:07.270 service positions for employees in confidential or policy-making roles. 00:17:07.890 --> 00:17:11.749 This schedule allows for their "expeditious removal" and is widely 00:17:11.749 --> 00:17:15.919 viewed as a revival of the controversial "Schedule F" plan, which would have 00:17:15.919 --> 00:17:20.749 converted tens of thousands of career civil servants into political appointees. 00:17:21.423 --> 00:17:24.364 Federal unions have fiercely opposed these changes. 00:17:24.723 --> 00:17:29.124 The American Federation of Government Employees (AFGE) called the memo 00:17:29.124 --> 00:17:33.103 an illegal attack on the civil service, arguing that it unilaterally 00:17:33.103 --> 00:17:37.683 violates existing labor contracts that stipulate how employees are 00:17:37.683 --> 00:17:39.624 to be evaluated and disciplined. 00:17:40.215 --> 00:17:43.245 The End of an Era: The Mandated Return to the Office 00:17:43.846 --> 00:17:48.346 The administration is also moving to end the era of expanded telework that 00:17:48.346 --> 00:17:50.875 began during the COVID-19 pandemic. 00:17:51.625 --> 00:17:55.516 A government-wide executive order requires a full return to in-person 00:17:55.516 --> 00:17:59.886 work, with agencies terminating most telework and remote work agreements. 00:18:00.355 --> 00:18:05.066 The Department of Veterans Affairs, for example, has set a July 28, 2025, 00:18:05.115 --> 00:18:09.875 deadline for many of its remote employees to return to a physical worksite. 00:18:10.602 --> 00:18:14.711 This policy is supported by legislation like the SHOW UP Act (H.R. 00:18:14.711 --> 00:18:18.892 473), which was reintroduced by Representative James Comer. 00:18:19.451 --> 00:18:24.201 This bill would legally mandate that agencies revert to their pre-pandemic 00:18:24.201 --> 00:18:28.371 2019 telework levels within 30 days and require them to complete a 00:18:28.371 --> 00:18:33.021 rigorous justification process for any future expansion of telework. 00:18:34.361 --> 00:18:38.582 This push comes despite a June 2025 report from the Government Accountability 00:18:38.582 --> 00:18:43.151 Office (GAO) which found that remote work had actually helped agencies meet 00:18:43.151 --> 00:18:45.921 hiring goals for mission-critical jobs. 00:18:46.601 --> 00:18:48.871 Legislative Watch: A Summary of Key Bills 00:18:49.477 --> 00:18:52.848 Several pieces of legislation currently in Congress could have 00:18:52.848 --> 00:18:55.578 profound impacts on federal employees. 00:18:56.169 --> 00:18:59.540 The FAIR Act proposes an average 4.3% 00:18:59.610 --> 00:19:03.710 pay raise for 2026 and this applies to current Employees. 00:19:04.060 --> 00:19:06.560 Status is that it has been introduced in Committee. 00:19:07.119 --> 00:19:11.190 The Equal COLA Act eliminates the FERS "diet COLA" to give FERS 00:19:11.190 --> 00:19:15.300 retirees the full COLA, and this applies to retired employees (FERS). 00:19:16.159 --> 00:19:18.500 Status is that it has been introduced in Committee 00:19:19.211 --> 00:19:20.622 The SHOW UP Act (H.R. 00:19:20.622 --> 00:19:25.552 473) mandates a return to 2019 telework levels and restricts 00:19:25.552 --> 00:19:29.102 future telework expansion, and applies to current employees. 00:19:29.491 --> 00:19:30.961 It has been Introduced in Committee. 00:19:31.677 --> 00:19:35.148 The Federal Employee Performance and Accountability Act (H.R. 00:19:35.148 --> 00:19:39.658 201) establishes a 5-year pilot program for pay-for-performance, 00:19:39.948 --> 00:19:44.557 including a potential 10% pay cut for underperformance and it applies to 00:19:44.557 --> 00:19:47.918 current employees (GS-11 to GS-15). 00:19:48.467 --> 00:19:50.008 It has been introduced in Committee. 00:19:50.691 --> 00:19:54.612 Together, these legislative and administrative actions represent 00:19:54.612 --> 00:19:58.191 a comprehensive effort to reshape the federal workforce. 00:19:58.881 --> 00:20:03.341 The combination of a pay freeze, the threat of RIFs, a more aggressive 00:20:03.341 --> 00:20:07.391 performance management system, and a mandatory return to the office 00:20:07.492 --> 00:20:11.551 creates a high-pressure environment designed to fundamentally alter the 00:20:11.551 --> 00:20:16.201 nature of federal employment, moving it away from a stable, career-based 00:20:16.201 --> 00:20:20.541 system toward one that is more precarious and politically responsive. 00:20:21.119 --> 00:20:24.389 And that’s a wrap on this week’s Federal Workforce Roundup. 00:20:24.929 --> 00:20:29.229 The landscape for federal employees and retirees is constantly shifting, 00:20:29.510 --> 00:20:34.109 with major decisions being made about everything from pay and job security 00:20:34.319 --> 00:20:38.190 to retirement benefits and the very structure of the civil service. 00:20:38.739 --> 00:20:40.789 Staying informed is your best tool. 00:20:41.219 --> 00:20:45.659 Be sure to subscribe wherever you get your podcasts, so you never miss an update. 00:20:46.490 --> 00:20:47.599 Thanks for tuning in. 00:20:47.650 --> 00:20:50.350 We’ll be back next week to track the latest developments 00:20:50.610 --> 00:20:52.079 and what they mean for you. 00:20:52.610 --> 00:20:55.409 Until then, stay engaged and be well.