FOR IMMEDIATE RELEASE:
Contact: Matt Dorsey
(202) 550-6987
July 7, 2027
Washington, D.C. – On Friday, July 4, 2025, President Trump signed into law a reconciliation bill that originally targeted federal workers and the unions representing them. With the help of our labor allies and union members across the country, the National Federation of Federal Employees (NFFE-IAM) stripped the bill of several provisions targeting the civil service before the final legislation was sent to the President’s desk.
Here are some of the policies that Republicans proposed, but were ultimately defeated:
- New federal hires are required to contribute 9.4% of basic pay to FERS to be at-will employees, or 14.4% to keep civil service protections, with an additional 5% to have union dues deducted from pay.
- New federal hires must accept reduced pay unless they agree to become “at-will” political employees under the Trump Schedule P/C scheme.
- Federal employees are required to pay a $405 fee to make a claim or appeal with the Merit Systems Protection Board.
- Federal employee pensions are calculated using the five highest-paid years instead of the standard three.
- Unions are required to pay wages for employees conducting union business.
- Unions will be taxed 10% on dues payments received via federal payroll.
- Allows the President to circumvent the constitutional authority of Congress by allowing POTUS to reorganize the executive branch without oversight or accountability for a period of 10 years.
Although these measures were not signed into law, the NFFE legislative team is now focusing on possible threats to the civil service via the National Defense Authorization Act (NDAA) and standard FY2026 appropriations.
“NFFE members and federal workers across the country were spared from the most extreme threats facing the civil service due to the tireless advocacy of union members, the labor movement, and our allies in Congress,” said NFFE National President Randy Erwin. “However, the American public will undoubtedly be harmed by the cruel policies of this legislation. Millions of people will lose their healthcare, food assistance, or jobs as local economies are destroyed – all to deliver a nearly $5 trillion handout to the ultra-wealthy. But the fight is not yet over – we must continue to stand in solidarity with working people to preserve our democracy and uphold American ideals.”