Speaker of the House Mike Johnson returns to his office after passing the Republican budget bill, at the US Capitol, in Washington, DC, USA, 03 July 2025. Republicans voted along party lines to approve the budget bill and send it to President Trump after leadership struggled to find votes during all-night sessions in both the House and Senate. Image: GRAEME SLOAN/EPA/Shutterstock
The House passed on a narrow party line vote (218 – 214) on Thursday a major spending and tax policy bill that it had been stripped of most federal employment-related provisions.
The main workplace-related provision that remained is a relatively uncontroversial one, to conduct a thorough audit of persons covered as family members under the FEHB program and to cull out those who are ineligible. There has been longstanding bipartisan support for such a review, following reports from GAO and OPM’s inspector general that coverage of ineligible persons is raising costs in that program.
The section of the bill applying to government-wide operations also continues through fiscal 2026 a special committee overseeing pandemic-related spending and adds a $100 million appropriation over five years for OMB. The latter is to be used “for purposes of finding budget and accounting efficiencies in the executive branch”—rather than for crafting agency reorganization plans that could be put into effect without approval of Congress, as in an earlier version of the bill.
The reorganization provision and several others were dropped in light of a ruling by the Senate Parliamentarian that they were extraneous to the bill. That ruling could have been waived but that would have required 60 votes in favor, which could not have been achieved over Democratic opposition. After a lengthy debate, the Senate vote on passing the bill ended in a tie, broken by Vice President Vance.
Other provisions deleted in that process included requiring all newly hired employees to pay an additional 5 percent of salary toward their retirement benefits plus an additional 5 percentage point increase unless they agreed to waive their civil service protections; charging a 10 percent administrative fee for payroll withholding, a provision mainly aimed at union dues but also that would have applied to deductions such as charitable contributions; and charging unions for the value of “official time” and use of agency resources such as office space.
Also knocked out were: requiring a $350 filing fee for appeals to the MSPB; requiring the USPS turn over to the GSA for sale its electric vehicles and the related infrastructure; and creating a new program of awards up to $10,000 for employees who disclose unnecessary spending.
The Senate earlier had removed several provisions from the House-passed version, including one that would have eliminated the FERS retirement supplement for those retiring in 2028 and later, except for those under special retirement provisions for law officers, firefighters and air traffic controllers.
The House itself had deleted several other federal workplace-related provisions originally considered there—including one that would have based annuities for those retiring in 2028 on their highest consecutive five salary years rather than three—in order to gain passage in its first vote.
House Republican leaders said they would seek a prompt vote on the bill, which largely reflects Trump administration policies on tax and spending issues, with a goal of enactment by Friday (July 4). Passage there, as in the Senate, was complicated by conflicting factions with the GOP regarding changes to Medicaid as well as adding to the deficit.
OPM Advises Agencies on Conducting RIFs During Shutdown
Updated Shutdown Contingency Plans Show Range of Impacts
Use Shutdown as Justification for More RIFs, OMB Tells Agencies
Unions Win a Round in Court Disputes over Anti-Representation Orders
Deferred Resignation Periods End for Many; Overall 12% Drop
Senate Bill Would Override Trump Orders against Unions
See also,
How to Handle Taxes Owed on TSP Roth Conversions? Use a Ladder
The Best Ages for Federal Employees to Retire
Best States to Retire for Federal Retirees: 2025