
The Trump administration has released further details of a budget proposal for the fiscal year whose start is now only four months away, although still well short of what annually kicks off the process of deciding on funding and policy issues for the upcoming year.
Following an earlier “skinny” budget that in essence was a collection of policy papers, the White House has posted an “appendix” volume, just one of a half-dozen book-sized documents that typically constitute a budget proposal. Like the earlier release, it does not propose a January 2026 federal pay raise; technically, a raise could yet be approved, but that would require the Republican leaders of both the House and Senate breaking with the White House on that issue.
The appendix book assumes significantly lower spending levels that likely would translate into job losses at numerous agencies—most already targeted in Trump administration initiatives—including HHS, Energy, EPA, IRS and the National Park Service. However, there are no specifics regarding projected employment levels.
A fuller budget including such specifics as well as any new policy proposals affecting the federal workforce is still to come. That however is not expected until next month at the earliest, with Congress still considering a major long-term tax and spending policy bill containing several provisions to devalue retirement benefits.
A budgetary appendix book consists mostly of boilerplate descriptions of agencies and programs and language carried over from year-to-year barring spending for certain purposes. For federal employees, the new version continues longstanding language generally prohibiting spending for coverage of abortion in the FEHB program—and now by extension the PSHB program—and generally requiring that plans cover prescription contraceptives, with certain exceptions in both cases.
One new provision reflects a previously announced policy to bar coverage for “the cost of surgical procedures or puberty blockers or hormone therapy for the purpose of gender affirming care.” Earlier guidance from OPM had said that would mean excluding coverage such as “treatments prescribed for the purpose of delaying the onset or progression of normally timed puberty”; and treatments and surgical procedures to “align an individual’s physical appearance with an identity that differs from his or her sex.”
Also added to a longstanding restriction against training in the federal workplace that is not directly job-related is a prohibition on training that “contains elements” of DEI.
Other new provisions include banning spending to “implement, administer, or enforce any COVID-10 mask or vaccine mandates” or to “carry out any program, project or activity” that promotes critical race theory.
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See also,
How Do Age and Years of Service Impact My Federal Retirement
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