WEBVTT NOTE This file was generated by Descript 00:00:00.039 --> 00:00:06.070 Lawrence: Welcome to The FED Weekly for 10-16 August 2025, your essential 00:00:06.150 --> 00:00:10.239 weekly briefing on the policies and proposals shaping your career, 00:00:10.539 --> 00:00:12.770 your benefits, and your retirement. 00:00:13.180 --> 00:00:17.229 Whether you’re a current federal employee navigating changes in the civil service, 00:00:17.600 --> 00:00:22.950 or a retiree keeping a close watch on your hard-earned pension and healthcare, this 00:00:22.950 --> 00:00:27.270 is your source for the latest news from Capitol Hill and the executive branch. 00:00:27.995 --> 00:00:32.046 Each week, we cut through the noise to bring you the critical updates on budget 00:00:32.046 --> 00:00:37.865 negotiations, pay raises, workforce policies, and the legislative battles that 00:00:37.865 --> 00:00:40.115 directly impact the federal community. 00:00:40.575 --> 00:00:43.825 Let's get you up to speed on what happened this past week. 00:00:44.421 --> 00:00:48.542 Section 1: Issues That Affect Current and Retired Federal Workers 00:00:49.187 --> 00:00:52.488 Government Funding Uncertainty and Potential Shutdowns 00:00:53.111 --> 00:00:56.901 Both the House of Representatives and the Senate adjourned for their August 00:00:56.901 --> 00:01:01.962 recess with substantial unfinished work, leaving a critical September 30 00:01:02.021 --> 00:01:07.471 deadline looming to extend government funding into fiscal year 2026. 00:01:08.221 --> 00:01:13.002 The House, for its part, had only managed to pass two of the twelve appropriations 00:01:13.002 --> 00:01:17.262 bills through the full chamber, with seven others having cleared committee. 00:01:18.012 --> 00:01:21.772 The Senate, before adjourning on August 1, passed three of the twelve 00:01:21.772 --> 00:01:25.772 appropriations bills and approved five others out of committee. 00:01:26.430 --> 00:01:30.510 This ongoing legislative impasse creates a considerable risk of a lapse 00:01:30.510 --> 00:01:34.970 in appropriations and a subsequent government shutdown on October 1. 00:01:35.919 --> 00:01:40.300 The House's proposed non-defense spending for the upcoming fiscal year stands 00:01:40.300 --> 00:01:46.070 at $15 billion less than the previous year's allocation and $148 billion 00:01:46.140 --> 00:01:47.890 more than the White House's request. 00:01:48.539 --> 00:01:52.369 Senate totals, conversely, are anticipated to surpass the House 00:01:52.369 --> 00:01:56.369 figures for both defense and non-defense spending, setting the stage for 00:01:56.369 --> 00:02:01.330 complex multi-party negotiations as the fiscal year-end deadline approaches. 00:02:02.031 --> 00:02:06.142 The immediate consequence of this uncertainty for federal employees is 00:02:06.142 --> 00:02:11.391 the potential for disrupted paychecks, while retirees face concerns regarding 00:02:11.391 --> 00:02:15.861 the continuity of agency operations and services upon which they depend. 00:02:16.742 --> 00:02:20.272 The divergent budget proposals from the House, Senate, and the White House, 00:02:20.651 --> 00:02:24.842 coupled with the Trump Administration's stated refusal to spend all previously 00:02:24.842 --> 00:02:30.592 appropriated funds based on ideological opposition to certain programs, signify 00:02:30.592 --> 00:02:34.642 a deep ideological battle over the very scope and funding of government. 00:02:35.381 --> 00:02:38.692 This is more than a procedural disagreement; it reflects a 00:02:38.692 --> 00:02:42.341 fundamental friction between the executive and legislative branches. 00:02:43.052 --> 00:02:47.492 The mention of potential "court challenges" further emphasizes a breakdown 00:02:47.492 --> 00:02:49.442 in traditional checks and balances. 00:02:50.142 --> 00:02:54.442 This intense political friction makes a straightforward resolution highly 00:02:54.442 --> 00:02:59.271 improbable, likely pushing Congress towards short-term continuing resolutions 00:02:59.532 --> 00:03:03.822 that merely defer the problem and prolong the period of uncertainty. 00:03:04.458 --> 00:03:09.297 Broader Challenges to Federal Employee Union Rights and Civil Service Integrity 00:03:09.885 --> 00:03:14.375 The period also saw continued challenges to the rights of federal employees and 00:03:14.375 --> 00:03:16.125 the integrity of the civil service. 00:03:16.665 --> 00:03:21.475 On August 13, 2025, the American Federation of Government Employees (AFGE), 00:03:21.475 --> 00:03:24.385 the largest union representing D.C. 00:03:24.385 --> 00:03:28.206 public employees, publicly condemned President Trump's D.C. 00:03:28.206 --> 00:03:28.915 Takeover. 00:03:29.306 --> 00:03:32.946 This action signals ongoing political battles that extend beyond 00:03:32.995 --> 00:03:37.065 agency-specific issues, reflecting a broader administration agenda 00:03:37.216 --> 00:03:39.296 impacting public sector employees. 00:03:39.963 --> 00:03:44.543 Further underscoring these concerns, the August 2025 NARFE Magazine 00:03:44.543 --> 00:03:48.913 reported that NARFE submitted official comments in opposition to the Office 00:03:48.913 --> 00:03:53.833 of Personnel Management's (OPM) Schedule P/C Rule, citing significant 00:03:53.833 --> 00:03:55.873 risks to civil service integrity. 00:03:56.493 --> 00:04:00.044 This refers to an ongoing concern about the reclassification of 00:04:00.044 --> 00:04:03.594 federal jobs, a move that could shift them out of competitive 00:04:03.594 --> 00:04:06.034 service and into at-will employment. 00:04:06.214 --> 00:04:10.694 Such a change would substantially erode civil service protections for current 00:04:10.694 --> 00:04:15.304 employees and undermine the stability of the federal workforce as a whole. 00:04:15.973 --> 00:04:20.594 The National Treasury Employees Union (NTEU) also mobilized its members 00:04:20.594 --> 00:04:24.693 through "August Recess Actions," urging them to contact Congress. 00:04:25.093 --> 00:04:28.794 Their calls included directives to "Protect federal employee rights by 00:04:28.794 --> 00:04:32.513 opposing bills and efforts by the administration to undermine unions and 00:04:32.513 --> 00:04:37.964 union rights" and to "Stop mass firings and the dismantling of federal programs". 00:04:38.013 --> 00:04:42.144 This demonstrates a unified front among federal employee unions 00:04:42.253 --> 00:04:45.693 against what they perceive as systemic attacks on their collective 00:04:45.693 --> 00:04:48.203 bargaining rights and job security. 00:04:48.833 --> 00:04:52.934 These issues are not confined to active employees; they affect the 00:04:52.934 --> 00:04:57.113 entire federal workforce, including retirees who have benefited from these 00:04:57.113 --> 00:04:59.034 protections throughout their careers. 00:05:00.465 --> 00:05:04.595 There is a clear, coordinated effort by federal employee unions and advocacy 00:05:04.595 --> 00:05:09.186 groups to resist administration policies that they believe undermine civil 00:05:09.186 --> 00:05:11.866 service protections and union rights. 00:05:12.545 --> 00:05:13.925 The condemnation of the D.C. 00:05:13.925 --> 00:05:19.026 Takeover , NARFE's opposition to the Schedule P/C Rule , and NTEU's call 00:05:19.026 --> 00:05:23.335 to action against "mass firings" and the "dismantling of federal programs" 00:05:23.606 --> 00:05:28.255 collectively illustrate a broad, multi-front challenge to the established 00:05:28.255 --> 00:05:29.995 framework of federal employment. 00:05:30.036 --> 00:05:34.456 This is not an isolated incident but rather a consistent pattern of executive 00:05:34.456 --> 00:05:38.645 action and proposed policy changes aimed at weakening the collective 00:05:38.645 --> 00:05:43.406 power and job security of federal workers across various agencies. 00:05:44.042 --> 00:05:47.591 Such aggressive and widespread actions against unions and civil 00:05:47.591 --> 00:05:52.512 service protections, if successful, could severely damage morale among 00:05:52.512 --> 00:05:56.832 current federal employees, potentially leading to a significant exodus 00:05:56.832 --> 00:06:00.811 of experienced personnel, often referred to as a "brain drain." 00:06:01.362 --> 00:06:06.211 It would also likely make federal service a far less attractive career path for 00:06:06.211 --> 00:06:10.741 new talent, especially when compared to opportunities in the private sector. 00:06:10.842 --> 00:06:15.371 This erosion of institutional knowledge and expertise could ultimately hinder 00:06:15.371 --> 00:06:19.681 the effectiveness of federal agencies in delivering critical services 00:06:19.681 --> 00:06:23.681 to the American people, impacting both current citizens and future 00:06:23.681 --> 00:06:26.082 retirees who rely on these services. 00:06:26.811 --> 00:06:31.012 The focus of federal employment could shift from public service stability to 00:06:31.012 --> 00:06:33.872 a state of increased job insecurity. 00:06:34.815 --> 00:06:37.536 GAO Report on OPM Priority Open Recommendations 00:06:38.095 --> 00:06:42.976 The Government Accountability Office (GAO) published a report titled "Priority 00:06:42.976 --> 00:06:49.215 Open Recommendations: Office of Personnel Management" on August 6, 2025, which was 00:06:49.215 --> 00:06:52.245 publicly released on August 13, 2025. 00:06:53.165 --> 00:06:56.146 While the specific recommendations were not detailed in the available 00:06:56.146 --> 00:07:00.535 information, the very existence of a "priority open recommendations" report 00:07:00.816 --> 00:07:06.385 signals areas of weakness or inefficiency within OPM that require attention. 00:07:06.426 --> 00:07:11.355 These are issues that affect the entire federal workforce and its administration. 00:07:11.921 --> 00:07:16.122 The GAO's role is to audit and investigate how the federal government utilizes 00:07:16.122 --> 00:07:20.992 taxpayer funds and to provide Congress with objective, fact-based information. 00:07:21.721 --> 00:07:26.702 A "Priority Open Recommendations" report specifically for OPM indicates 00:07:26.702 --> 00:07:30.652 that critical, unaddressed issues persist within OPM's operations or 00:07:30.652 --> 00:07:34.691 policy implementation that the GAO deems important enough to highlight. 00:07:35.392 --> 00:07:39.711 This suggests that despite OPM's ongoing efforts to modernize, as seen 00:07:39.711 --> 00:07:44.042 in other initiatives like the digital retirement process, fundamental 00:07:44.072 --> 00:07:46.191 or systemic challenges remain. 00:07:46.851 --> 00:07:51.112 Addressing these challenges is crucial for ensuring the effective and efficient 00:07:51.112 --> 00:07:53.232 management of the federal workforce. 00:07:53.875 --> 00:07:57.296 Section 2: Issues That Affect Current Federal Workers 00:07:57.923 --> 00:08:02.644 2026 Federal Employee Pay Raise Outlook and Legislative Proposals 00:08:03.231 --> 00:08:08.811 As of June 2025, the outlook for a federal employee pay raise in 2026 00:08:09.041 --> 00:08:12.731 remained uncertain, characterized by divergent proposals from the 00:08:12.731 --> 00:08:14.782 executive and legislative branches. 00:08:15.492 --> 00:08:20.241 President Trump's fiscal year 2026 budget proposal notably includes a pay 00:08:20.241 --> 00:08:25.462 freeze for federal civilian employees, marking the first such freeze since 2013. 00:08:25.982 --> 00:08:29.552 In contrast, this proposal suggests a 3.8% 00:08:29.552 --> 00:08:32.021 pay raise for military service members. 00:08:32.052 --> 00:08:34.991 On the other hand, Democratic lawmakers have introduced the 00:08:34.991 --> 00:08:40.361 Federal Adjustment of Income Rates (FAIR) Act, which proposes a 4.3% 00:08:40.361 --> 00:08:43.881 average pay raise for federal employees in 2026. 00:08:45.092 --> 00:08:50.462 While no new updates specifically within August 10-16 were provided on this topic, 00:08:50.872 --> 00:08:56.462 the discussion around the 2026 pay raise is an ongoing and critical consideration 00:08:56.462 --> 00:09:00.252 for current federal employees monitoring their future compensation. 00:09:00.875 --> 00:09:05.165 There is a significant divergence in proposals for the 2026 federal 00:09:05.165 --> 00:09:08.526 employee pay raise, with the administration advocating for a 00:09:08.526 --> 00:09:12.796 freeze and Democratic lawmakers pushing for a substantial increase. 00:09:13.296 --> 00:09:17.276 This stark contrast between President Trump's proposed pay freeze for 00:09:17.276 --> 00:09:20.155 civilian employees and a 3.8% 00:09:20.186 --> 00:09:24.735 raise for military service members highlights a potential widening of 00:09:24.735 --> 00:09:29.155 the compensation gap between different segments of the federal workforce. 00:09:29.235 --> 00:09:33.536 This disparity, particularly when viewed alongside reports indicating that 00:09:33.536 --> 00:09:37.815 private sector employees already earn significantly more than their federal 00:09:37.815 --> 00:09:42.876 counterparts, could negatively impact morale, recruitment, and retention 00:09:43.045 --> 00:09:45.056 within the civilian federal workforce. 00:09:46.045 --> 00:09:50.345 Employees may perceive themselves as undervalued compared to their military 00:09:50.345 --> 00:09:52.536 colleagues or private sector peers. 00:09:53.191 --> 00:09:56.971 The administration's proposal for a pay freeze can be interpreted not 00:09:56.971 --> 00:10:01.681 merely as a budget-saving measure but also as a strategic tool to 00:10:01.681 --> 00:10:03.462 reshape the federal workforce. 00:10:03.952 --> 00:10:08.122 By limiting pay increases, it could disincentivize certain individuals from 00:10:08.122 --> 00:10:10.162 joining or remaining in federal service. 00:10:10.781 --> 00:10:15.281 This aligns with a broader agenda to potentially reduce the size or alter the 00:10:15.281 --> 00:10:17.791 composition of the federal bureaucracy. 00:10:18.422 --> 00:10:22.752 In this context, pay policy transforms from a simple compensation matter 00:10:23.051 --> 00:10:27.122 into a powerful lever for workforce control and ideological alignment. 00:10:27.782 --> 00:10:31.142 New OPM Guidance on Performance Awards and Management 00:10:31.727 --> 00:10:37.608 On August 11, 2025, the Office of Personnel Management (OPM) issued new 00:10:37.608 --> 00:10:41.477 government-wide guidance concerning awards for federal employees. 00:10:42.047 --> 00:10:45.568 This updated policy directs agencies to strengthen their performance 00:10:45.568 --> 00:10:50.417 management practices, normalize ratings, and explicitly reserve the largest 00:10:50.417 --> 00:10:54.597 awards and bonuses for employees who have demonstrated exceptional 00:10:54.597 --> 00:10:57.097 contributions to their agency's mission. 00:10:57.188 --> 00:11:02.108 The guidance also encourages agencies to expand the use of non-cash awards, 00:11:02.507 --> 00:11:06.877 such as time-off and quality step increases, and to recognize real-time 00:11:06.877 --> 00:11:08.557 accomplishments throughout the year. 00:11:09.170 --> 00:11:14.190 OPM Director Scott Kupor articulated the rationale behind this shift, stating 00:11:14.190 --> 00:11:18.310 that "Too often in the past, awards have been spread thinly across the 00:11:18.310 --> 00:11:21.100 board in ways that dilute their impact." 00:11:21.579 --> 00:11:25.399 He emphasized that this new approach aims to incentivize excellence, 00:11:25.659 --> 00:11:30.429 reward those who truly go "above and beyond," and ultimately help build the 00:11:30.429 --> 00:11:34.239 "high-performance culture the American people deserve from their government". 00:11:34.720 --> 00:11:38.280 OPM is thus implementing a more targeted and merit-based system 00:11:38.280 --> 00:11:42.419 for federal employee performance awards, placing a strong emphasis 00:11:42.419 --> 00:11:44.359 on exceptional contributions. 00:11:44.978 --> 00:11:50.967 OPM's explicit directive to "normalize ratings" and "reserve the largest awards 00:11:50.967 --> 00:11:54.877 and bonuses for employees who have demonstrated exceptional contributions" 00:11:55.228 --> 00:11:59.747 signals a significant departure from a more egalitarian approach to awards. 00:12:00.438 --> 00:12:04.358 This move is designed to foster a more competitive environment within agencies, 00:12:04.698 --> 00:12:08.768 where performance differentiation is not just encouraged but mandated. 00:12:08.868 --> 00:12:12.628 It reflects a broader administrative philosophy aimed at cultivating 00:12:12.628 --> 00:12:16.798 a "high-performance culture" by more substantially rewarding a 00:12:16.798 --> 00:12:19.108 select group of top performers. 00:12:19.753 --> 00:12:23.993 While the stated goal is to incentivize excellence, a system that normalizes 00:12:23.993 --> 00:12:28.833 ratings and concentrates rewards on a small percentage of "top performers" could 00:12:28.833 --> 00:12:31.394 lead to several unintended consequences. 00:12:31.953 --> 00:12:36.424 Employees who consistently "meet expectations" but do not "significantly 00:12:36.424 --> 00:12:41.654 exceed" them might feel undervalued or demotivated if they receive no or minimal 00:12:41.654 --> 00:12:46.144 recognition, especially if a forced distribution of ratings is implied. 00:12:46.324 --> 00:12:49.773 This approach could inadvertently foster internal competition over 00:12:49.773 --> 00:12:54.374 collaboration, create perceptions of unfairness if performance metrics 00:12:54.374 --> 00:12:58.183 are subjective or inconsistently applied, and ultimately affect 00:12:58.183 --> 00:13:00.924 overall workforce morale and cohesion. 00:13:01.602 --> 00:13:04.561 Updated Guidance on Strengthening Probationary 00:13:04.561 --> 00:13:06.321 Periods in the Federal Service 00:13:06.926 --> 00:13:10.935 Updated guidance on President Trump's Executive Order "Strengthening 00:13:10.935 --> 00:13:15.235 Probationary Periods in the Federal Service" was issued by Veronica E. 00:13:15.235 --> 00:13:19.325 Hinton, Associate Director of the OPM Office of Workforce Policy 00:13:19.325 --> 00:13:22.756 and Innovation, on August 7, 2025. 00:13:23.416 --> 00:13:28.656 This indicates ongoing implementation and refinement of policies aimed at increasing 00:13:28.656 --> 00:13:33.626 accountability and potentially making it easier to remove underperforming employees 00:13:33.626 --> 00:13:36.216 during their initial probationary periods. 00:13:36.246 --> 00:13:40.236 This executive order was initially issued in April 2025. 00:13:40.987 --> 00:13:45.547 OPM continues to issue guidance related to strengthening probationary periods, 00:13:45.837 --> 00:13:49.867 aligning with the administration's focus on federal employee accountability. 00:13:50.638 --> 00:13:55.738 The updated guidance suggests a continued emphasis on rigorous evaluation during 00:13:55.738 --> 00:13:57.958 the initial phase of federal employment. 00:13:58.817 --> 00:14:03.208 This implies that new federal employees will face heightened scrutiny and 00:14:03.208 --> 00:14:07.948 potentially a lower threshold for removal during their probationary period. 00:14:08.067 --> 00:14:12.737 This policy aims to make it easier for agencies to dismiss employees who are 00:14:12.737 --> 00:14:17.097 deemed not to be a good fit, thereby reducing job security during this 00:14:17.097 --> 00:14:19.727 critical initial phase of federal service. 00:14:20.382 --> 00:14:23.542 Major Union Contract Terminations and Legal Battles 00:14:24.159 --> 00:14:28.900 On August 11, 2025, the Department of Veterans Affairs (VA) terminated 00:14:28.900 --> 00:14:32.849 its collective bargaining agreements with AFGE and other labor unions 00:14:33.050 --> 00:14:36.000 representing over 400,000 VA workers. 00:14:36.680 --> 00:14:41.769 AFGE President Everett Kelley condemned this action by VA Secretary Doug Collins 00:14:42.089 --> 00:14:47.040 as a clear case of retaliation against AFGE members for speaking out against 00:14:47.040 --> 00:14:51.699 the Trump administration's "illegal, anti-worker, and anti-veteran policies". 00:14:52.814 --> 00:14:57.934 VA Secretary Collins cited Executive Order 14251 as the basis for the 00:14:57.934 --> 00:15:02.593 termination, despite OPM guidance instructing agencies not to terminate 00:15:02.593 --> 00:15:06.404 collective bargaining agreements until the conclusion of litigation. 00:15:07.053 --> 00:15:10.683 This termination affects most VA employees, with the exception of 00:15:10.683 --> 00:15:14.144 police officers, firefighters, and security guards, who are 00:15:14.144 --> 00:15:15.894 exempt from the executive order. 00:15:16.523 --> 00:15:20.314 AFGE is currently assessing its legal options to challenge 00:15:20.314 --> 00:15:24.594 Secretary Collins' decision and restore its members' union rights. 00:15:25.154 --> 00:15:29.564 The union is also urging VA employees to contact their congressional offices 00:15:29.814 --> 00:15:34.133 and advocate for the "Protect America's Workforce Act," a critical bill that 00:15:34.133 --> 00:15:37.784 would overturn the executive order and restore collective bargaining 00:15:37.784 --> 00:15:39.823 rights to all federal workers. 00:15:40.495 --> 00:15:45.175 In a similar development on August 11, 2025, AFGE's council 00:15:45.175 --> 00:15:49.185 representing over 8,000 employees at the Environmental Protection 00:15:49.185 --> 00:15:53.756 Agency (EPA) announced its intent to continue fighting after the agency 00:15:53.756 --> 00:15:55.945 cancelled their negotiated contract. 00:15:56.925 --> 00:16:00.466 This indicates a pattern of the administration targeting union contracts 00:16:00.466 --> 00:16:02.585 across multiple federal agencies. 00:16:03.165 --> 00:16:06.976 However, not all administration efforts to cut or reorganize 00:16:06.976 --> 00:16:08.806 agencies have been successful. 00:16:08.865 --> 00:16:13.606 On August 11, 2025, a powerful Senate committee rejected President Trump's 00:16:13.606 --> 00:16:17.336 proposed budget cuts to the Centers for Disease Control and Prevention 00:16:17.505 --> 00:16:21.766 (CDC) and the National Institute for Occupational Safety and Health (NIOSH), 00:16:22.156 --> 00:16:24.575 marking a win for public health workers. 00:16:25.336 --> 00:16:29.816 This demonstrates ongoing legislative pushback against some executive actions. 00:16:30.345 --> 00:16:36.156 Furthermore, AFGE announced a "Save the Date August 14: SSA Day of Action" 00:16:36.465 --> 00:16:40.375 for Social Security Workers United, aimed at raising awareness about 00:16:40.375 --> 00:16:42.956 administration attacks on SSA workers. 00:16:43.715 --> 00:16:47.335 This highlights continued union activism and organized resistance to 00:16:47.335 --> 00:16:49.445 perceived threats to federal workers. 00:16:50.019 --> 00:16:53.809 The Trump administration is aggressively terminating collective bargaining 00:16:53.809 --> 00:16:58.849 agreements with major federal employee unions, leading to widespread union 00:16:58.849 --> 00:17:01.049 resistance and legal challenges. 00:17:01.549 --> 00:17:06.299 The termination of collective bargaining agreements at the VA (affecting 400,000 00:17:06.299 --> 00:17:14.150 workers) and EPA (affecting 8,000 workers) on August 11, 2025, represents a direct 00:17:14.180 --> 00:17:19.150 and aggressive executive action aimed at weakening federal employee unions. 00:17:19.189 --> 00:17:23.520 The fact that VA Secretary Collins proceeded despite OPM guidance to 00:17:23.520 --> 00:17:27.779 await litigation outcomes highlights the administration's determination. 00:17:28.619 --> 00:17:33.270 In response, unions like AFGE are not only pursuing legal challenges but 00:17:33.270 --> 00:17:37.689 also actively mobilizing members to push for legislative remedies, such 00:17:37.689 --> 00:17:41.700 as the "Protect America's Workforce Act" , indicating a full-spectrum 00:17:41.700 --> 00:17:43.549 battle to preserve union rights. 00:17:44.149 --> 00:17:47.229 The termination of these major collective bargaining agreements, 00:17:47.500 --> 00:17:51.400 coupled with the ongoing legal and legislative battles, signals a 00:17:51.400 --> 00:17:56.790 fundamental and potentially irreversible shift in federal labor relations. 00:17:57.519 --> 00:18:01.689 If these actions stand, they could severely diminish the ability of federal 00:18:01.689 --> 00:18:05.970 employee unions to advocate for their members on issues ranging from working 00:18:05.970 --> 00:18:08.370 conditions and pay to job security. 00:18:08.419 --> 00:18:12.829 This would leave individual federal employees with significantly less 00:18:12.829 --> 00:18:16.539 collective power and recourse, potentially leading to a more 00:18:16.570 --> 00:18:20.939 autocratic management style within federal agencies and a decline in 00:18:20.939 --> 00:18:23.009 employee protections and benefits. 00:18:23.679 --> 00:18:27.169 AFGE Restructures Key Departments to Meet New Challenges 00:18:27.725 --> 00:18:33.025 On August 12, 2025, AFGE announced that it had restructured key 00:18:33.025 --> 00:18:35.056 departments to meet new challenges. 00:18:35.665 --> 00:18:39.815 This internal organizational change by the largest federal employee union 00:18:40.015 --> 00:18:44.236 reflects its adaptation to the current environment of increased challenges 00:18:44.435 --> 00:18:46.646 and attacks on federal workers' rights. 00:18:47.335 --> 00:18:52.906 AFGE's decision to restructure key departments in mid-August 2025, amidst 00:18:52.906 --> 00:18:56.496 the backdrop of aggressive union contract terminations and broader 00:18:56.496 --> 00:19:01.536 challenges to federal employee rights, is a clear strategic adaptation. 00:19:02.065 --> 00:19:05.605 This indicates that the union perceives the current environment as 00:19:05.605 --> 00:19:10.095 fundamentally altered and requiring a more agile and effective internal 00:19:10.095 --> 00:19:14.786 structure to defend its members and counter the administration's policies. 00:19:14.825 --> 00:19:18.825 This is a direct response to perceived threats, aiming to enhance their 00:19:18.825 --> 00:19:21.616 advocacy capabilities and effectiveness. 00:19:22.351 --> 00:19:25.402 GAO Report on Federal Workforce Name Change Process 00:19:25.995 --> 00:19:30.236 The Government Accountability Office (GAO) published a report on August 00:19:30.236 --> 00:19:35.435 14, 2025, titled "Federal Workforce: Selected Agencies Need to Improve 00:19:35.435 --> 00:19:37.416 Employee Name Change Process". 00:19:38.256 --> 00:19:42.515 This report identifies administrative inefficiencies within federal agencies 00:19:42.716 --> 00:19:44.956 regarding a basic personnel process. 00:19:45.695 --> 00:19:49.265 It points to a need for improved internal operations that directly 00:19:49.265 --> 00:19:53.486 affect current employees' personal records and, by extension, potentially 00:19:53.486 --> 00:19:55.525 their benefits or identification. 00:19:56.122 --> 00:20:00.142 A GAO report specifically highlighting the need for improvement in the 00:20:00.142 --> 00:20:04.151 "Employee Name Change Process" suggests that even fundamental 00:20:04.151 --> 00:20:08.492 administrative functions within federal agencies are not operating optimally. 00:20:09.322 --> 00:20:13.311 While seemingly minor, inefficient name change processes can lead to 00:20:13.311 --> 00:20:17.252 significant headaches for current employees, impacting their official 00:20:17.252 --> 00:20:19.842 records, benefits, and identification. 00:20:19.951 --> 00:20:24.211 This points to broader systemic issues in data management and administrative 00:20:24.211 --> 00:20:28.222 responsiveness within the federal bureaucracy, directly affecting 00:20:28.222 --> 00:20:31.871 the daily lives and administrative burdens of current federal workers. 00:20:32.505 --> 00:20:35.946 Section 3: Issues That Affect Retired Federal Workers 00:20:36.574 --> 00:20:40.654 2026 Retiree Cost-of-Living Adjustment (COLA) Projections 00:20:41.267 --> 00:20:46.898 As of August 12, 2025, the projected 2026 Cost-of-Living Adjustments (COLAs) for 00:20:46.898 --> 00:20:48.858 federal retirees have been announced. 00:20:49.618 --> 00:20:52.847 For those under the Civil Service Retirement System (CSRS), 00:20:53.217 --> 00:20:55.738 the projected COLA is 2.5%, 00:20:56.108 --> 00:20:59.738 while Federal Employees Retirement System (FERS) retirees are 00:20:59.738 --> 00:21:01.537 projected to receive a 2.0% 00:21:01.537 --> 00:21:02.258 adjustment. 00:21:03.018 --> 00:21:06.258 Additionally, the Federal Employees' Compensation Act (FECA) 00:21:06.428 --> 00:21:08.748 COLA projection stands at 2.4% 00:21:08.777 --> 00:21:10.617 as of July 2025. 00:21:10.727 --> 00:21:15.507 These crucial projections are based on the July 2025 Consumer Price Index 00:21:15.768 --> 00:21:20.727 for Urban Wage Earners and Clerical Workers (CPI-W) data, which was released 00:21:20.727 --> 00:21:22.678 by the Bureau of Labor Statistics. 00:21:23.346 --> 00:21:27.446 These projections are vital as they directly influence the purchasing power 00:21:27.446 --> 00:21:29.705 of federal retirees in the upcoming year. 00:21:30.306 --> 00:21:34.096 It is important to note that the final COLA calculation for CSRS 00:21:34.096 --> 00:21:38.596 and FERS benefits will be confirmed in October 2025, following the 00:21:38.596 --> 00:21:41.105 release of the September CPI-W data. 00:21:41.755 --> 00:21:47.435 The FECA COLA, conversely, will be finalized later, in January 2026, upon the 00:21:47.435 --> 00:21:50.666 publication of the December 2025 CPI-W. 00:21:50.855 --> 00:21:56.295 Federal retirees can thus anticipate a moderate COLA for 2026, which is intended 00:21:56.295 --> 00:21:58.465 to help offset the effects of inflation. 00:21:58.946 --> 00:22:03.575 However, it is notable that FERS retirees are projected to receive a lower 00:22:03.575 --> 00:22:06.415 adjustment than their CSRS counterparts. 00:22:07.059 --> 00:22:10.450 Ongoing Transition to Fully Digital Retirement Process 00:22:11.026 --> 00:22:16.595 The August 2025 issue of NARFE Magazine highlighted an ongoing initiative by the 00:22:16.595 --> 00:22:21.896 Office of Personnel Management (OPM): the "Transition to Fully Digital Retirement, 00:22:22.215 --> 00:22:24.026 Deadline for Federal Agencies...". 00:22:24.936 --> 00:22:29.025 While OPM had initially announced the launch of its fully online retirement 00:22:29.025 --> 00:22:34.756 application system earlier in 2025, specifically on May 12, 2025, the 00:22:34.756 --> 00:22:39.355 continued mention in August implies that this transition is an active and evolving 00:22:39.355 --> 00:22:44.496 process with sustained relevance for federal agencies and prospective retirees. 00:22:45.316 --> 00:22:49.066 This suggests that OPM is likely continuing its efforts to ensure 00:22:49.066 --> 00:22:53.295 agencies adopt the new digital process, possibly through established 00:22:53.295 --> 00:22:55.496 deadlines or ongoing guidance. 00:22:56.234 --> 00:23:00.883 OPM's initiative for a fully digital retirement process is actively being 00:23:00.883 --> 00:23:04.934 implemented, aiming to modernize and streamline the retirement application 00:23:04.934 --> 00:23:06.934 experience for federal employees. 00:23:07.794 --> 00:23:11.573 This digital transformation aligns with OPM's earlier memorandum on 00:23:11.884 --> 00:23:15.723 "Implementing the President's Department of Government Efficiency (DOGE) 00:23:15.723 --> 00:23:20.114 Initiative for a Modernized, Efficient, and Expedient Retirement Process," 00:23:20.493 --> 00:23:23.264 which was issued on May 7, 2025. 00:23:23.424 --> 00:23:26.713 This connection suggests that the digital transition is part of a 00:23:26.713 --> 00:23:31.573 broader, administration-wide push for government efficiency and modernization. 00:23:32.794 --> 00:23:37.353 The mention of a "deadline for Federal Agencies" further indicates a top-down 00:23:37.353 --> 00:23:41.303 mandate for the adoption of this new system, reinforcing the commitment 00:23:41.303 --> 00:23:43.053 to this digital transformation. 00:23:43.695 --> 00:23:47.916 A fully digital retirement process, if implemented effectively, has the 00:23:47.916 --> 00:23:52.376 potential to significantly reduce processing times and alleviate backlogs, 00:23:52.895 --> 00:23:57.426 thereby providing a more efficient and expedient experience for retirees. 00:23:58.145 --> 00:24:01.395 This would address long-standing frustrations associated with the 00:24:01.395 --> 00:24:03.106 traditional paper-based system. 00:24:03.725 --> 00:24:07.725 However, for some older retirees or those with limited digital literacy, 00:24:07.985 --> 00:24:10.006 this transition could present challenges. 00:24:10.846 --> 00:24:14.715 To ensure equitable service delivery, it will be crucial for OPM and 00:24:14.715 --> 00:24:19.795 individual agencies to provide robust support, comprehensive guidance, and 00:24:19.795 --> 00:24:22.036 potentially alternative access methods. 00:24:22.676 --> 00:24:27.025 The ultimate success of this modernization effort hinges on its user-friendliness 00:24:27.385 --> 00:24:31.115 and the availability of thorough support systems for all users. 00:24:31.835 --> 00:24:34.875 And that’s a wrap on this week’s Federal Workforce Roundup. 00:24:35.496 --> 00:24:39.865 The landscape for federal employees and retirees is constantly shifting, 00:24:40.426 --> 00:24:44.775 with major decisions being made about everything from pay and job security 00:24:45.125 --> 00:24:49.265 to retirement benefits and the very structure of the civil service. 00:24:49.875 --> 00:24:51.906 Staying informed is your best tool. 00:24:52.416 --> 00:24:56.486 Be sure to subscribe wherever you get your podcasts, so you never miss an update. 00:24:57.117 --> 00:24:58.147 Thanks for tuning in. 00:24:58.247 --> 00:25:00.988 We’ll be back next week to track the latest developments 00:25:00.988 --> 00:25:02.307 and what they mean for you. 00:25:02.738 --> 00:25:05.888 Until then, stay engaged and be well.