Internal NFFE News
May 28, 2025
Last week the House narrowly passed Trump’s self-proclaimed “big, beautiful bill” by a single-vote margin and sent it along to the Senate. The bill aims to issue new tax breaks, increase spending on military and border enforcement and would add about $3.8 trillion to the federal government’s $36.2 trillion in debt over the next decade, according to the nonpartisan Congressional Budget Office (CBO.)
The House budget resolution included many harmful items for federal employees, which are still on the table for the Senate’s version. It is critical that you contact your Senate representatives to urge them to reject cuts to federal employee retirement and the dismantling of civil service merit protections.
Below are provisions the House considered. Some items were not included in the House’s final budget, but the Senate may incorporate them.
- 4.4% FERS for All – Forcing all federal employees to contribute 4.4% to their FERS retirement plan—a 3.3% increase for many—amounts to an across-the-board pay cut. This compounds the existing 27% wage gap between federal and private-sector employees.
- Extorting New Hires into Political Servitude – Republicans propose offering new federal employees a lower FERS contribution rate—but only if they agree to be hired under Schedule PC, a political status that strips away job protections, appeal rights, and union eligibility. If enacted, this scheme will eventually be extended to all employees. It amounts to forfeiting whistleblower protections and legal safeguards against corruption. This isn’t a choice—it’s criminal extortion. In effect, workers would be forced to pay a 5% (or more) premium from their salary just to retain the legal rights they already have today.
- Cutting First Responders’ Pensions – Eliminating the FERS Annuity Supplement would punish law enforcement officers, wildland firefighters, and other first responders who retire—or are forced to retire—before they qualify for Social Security.
- Slashing Pension Formulas – Changing the pension calculation from a high-3 to a high-5 average salary formula would reduce already modest retirement benefits, despite decades of employee contributions.
- Gutting FEHB with Vouchers – Replacing the stable and cost-effective Federal Employees Health Benefits (FEHB) program with a volatile voucher system would increase costs for workers, undermine the quality of care, and lead to higher premiums, deductibles, and co-pays.
- Unlawful Fees on Justice and Unions – Imposing a $350 fee on federal employees to file appeals with the Merit Systems Protection Board (MSPB), and charging unions for official time—despite it being legally mandated—are both blatant efforts to suppress justice and silence collective bargaining
Outside of these direct threats, according to reporting from Reuters, “the 1,100-page bill would extend corporate and individual tax cuts passed in 2017 during Trump’s first term in office, cancel many green-energy incentives passed by Democratic former President Joe Biden and tighten eligibility for health and food programs for the poor. It also would fund Trump’s crackdown on immigration, adding tens of thousands of border guards and creating the capacity to deport up to 1 million people each year. Regulations on firearm silencers would be loosened.”
Democrats in Congress have voiced concerns that the bill will disproportionately benefit the wealthy while cutting benefits for working Americans. The CBO found it would reduce income for the poorest 10% of U.S. households and boost income for the top 10%.
If enacted, this bill could amount to the most significant cuts to the Supplemental Nutrition Assistance Program (SNAP) and to Medicaid in history. It would also lead to job cuts, an increased cost of living around the country and less financial security for working Americans. All of which are cause for concern for civil servants and their families.
Use our Action Network today to write to your Senators: Tell Congress Hands Off Federal Employees’ Retirement and Merit Protections
Don’t forget you can also contact Congressional district offices and request a meeting with your representatives in your district. If your House Representative voted for this package, let them know they are passing legislation which threatens you and your family.
Congressional switchboard: (202) 224-3121