Among the issues separate from the budget context of importance to federal employees is the prospect of the Senate joining the House in passing a measure to repeal the government pension offset and windfall elimination provisions. Image: The Bold Bureau/Shutterstock.com
By: FEDweek StaffCongress is down to less than three working weeks scheduled for the year, with decisions still to be made on a range of federal workforce policies and on agency funding ahead of the December 20 expiration of a stopgap measure.
While there’s a general expectation of another extension, which would avoid the prospect of a partial government shutdown, it remains unclear how long it would last. Republicans are pushing for an extension only into March to put decisions on funding and policy priorities for the second half of the current fiscal year in the hands of the incoming Trump administration and a new Congress under Republican control in both the House and Senate.
Democrats meanwhile are urging funding through September 30, citing the inefficiencies that stopgaps cause, while also pushing for additional funding in disaster relief and certain other areas. They also continue to look for a potential vehicle to put a ban against the return of Schedule F into law to head off its return by administrative action, although prospects for that are dim.
Among the issues recently arising is a technical matter that if not addressed would require an additional $20 billion cut to the $80 billion IRS budget supplement approved in 2022, which would come on top of a cut of that size already imposed. That would hamper customer service, processing and other operations and could trigger a hiring freeze, the IRS parent Treasury Department has said. Other agencies that have raised the prospect of a hiring freeze include FAA, SSA and VA.
Short-term continuing resolutions typically only continue ongoing programs at existing levels with few exceptions. Following that practice likely also would mean dropping, at least temporarily, the various policy riders affecting telework, health insurance coverage and more that Republicans added to House spending bills earlier in the year.
Regardless of how Congress approaches the agency funding issue, an average 2 percent pay raise for federal employees in January appears to be set. An executive order late in the month would specify raises by locality, ranging from several tenths of a percentage point above that average to several tenths below. The raise would be effective with the first full pay period of the new year, beginning January 12 for most.
Among the issues separate from the budget context of importance to federal employees is the prospect of the Senate joining the House in passing a measure to repeal the government pension offset and windfall elimination provisions, that reduce Social Security benefits for federal retirees under CSRS. While the Senate bill has enough backers to assure passage, there has been no sign that a vote will be called.
Also still pending is the annual DoD authorization bill, which has been passed each year for decades, usually with strong bipartisan support. That bill is one that Democrats have eyed as a potential vehicle for blocking the return of Schedule F.
A suspension of the federal debt ceiling meanwhile expires at year’s end, although there is no expectation of that issue being taken up until next year. The government would instead again employ several financial maneuvers that would buy at least several months of time.
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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
