The FED Weekly

Lawrence: Welcome to The FED Weekly
for 3-9 August 2025, your essential

weekly briefing on the policies
and proposals shaping your career,

your benefits, and your retirement.

Whether you’re a current federal employee
navigating changes in the civil service,

or a retiree keeping a close watch on your
hard-earned pension and healthcare, this

is your source for the latest news from
Capitol Hill and the executive branch.

Each week, we cut through the noise to
bring you the critical updates on budget

negotiations, pay raises, workforce
policies, and the legislative battles that

directly impact the federal community.

Let's get you up to speed on
what happened this past week.

Section 1: Issues That Affect
Current and Retired Federal Workers

OPM Orders Removal of COVID-19 Vaccine
Records from Federal Personnel Files

On 8 August 2025, the U.S.

Office of Personnel Management, or
OPM, issued new guidance directing

all federal agencies to eliminate any
record of a federal employee's COVID-19

vaccination status, prior noncompliance
with vaccine mandates, or requests

for exemptions from such mandates.

This directive, issued by OPM Director
Scott Kupor, is part of the Trump

Administration's broader effort to
reverse what it has termed "harmful

pandemic-era policies" imposed
under the Biden Administration.

Director Kupor's statement emphasized
the administration's stance, noting,

"Things got out of hand during the
pandemic, and federal workers were

fired, punished, or sidelined for simply
making a personal medical decision.

That should never have happened.

Thanks to President Trump's
leadership, we're making sure the

excesses of that era do not have
lingering effects on federal workers".

Effective immediately, agencies are
prohibited from using an individual's

vaccine history in any employment-related
decision, including hiring,

promotion, discipline, or termination.

Employees have a ninety-day window
to affirmatively opt out if they

wish to retain their COVID vaccine
history on file; otherwise, all

vaccine-related information must be
permanently removed from both physical

and electronic personnel files.

Agencies are required to
certify their compliance with

this memo by 8 September 2025.

This directive aims to erase the
administrative footprint of past federal

COVID-19 vaccine mandates and prevent
any future employment discrimination

based on vaccination status.

Protecting Federal Employee Rights
to Personnel Files Act of 2025 (H.R.

1319)

This week, Congresswoman Julia
Brownley, a Democrat from California,

announced the introduction of the
"Protecting Federal Employee Rights

to Personnel Files Act of 2025".

This proposed legislation is designed
to prevent the Trump administration from

withholding personnel files containing
critical documents from current,

separated, and retired federal employees.

The bill was introduced in direct
response to numerous reports from

federal employees, particularly those
who had been terminated, who faced

significant delays or outright denials
in accessing their personnel files.

These files are crucial as they
contain essential documents needed

for various purposes, including
filing taxes, applying for new jobs,

or claiming unemployment benefits.

Many separated employees reported
losing immediate access to their

electronic official personnel
folders upon termination,

especially when required to return
government-issued devices immediately.

The proposed legislation would mandate
federal agencies to provide a separated

employee with a copy of their official
personnel file, in both electronic

and physical form, no later than seven
days after their date of separation.

For current employees, OPM would
be required to furnish a copy

within seven days upon request.

Furthermore, any former employees who
were separated prior to the bill's

enactment would be entitled to their
personnel files within twenty-one

days of requesting them from OPM.

The bill has garnered significant
support and is endorsed by major federal

employee unions, including the American
Federation of Government Employees,

the National Federation of Federal
Employees, the National Treasury Employees

Union, and the American Federation of
State, County and Municipal Employees.

This proposed legislation directly
addresses a critical administrative and

practical challenge faced by federal
employees, particularly those undergoing

separation, ensuring timely access to
vital personal and professional records.

The introduction of this bill directly
addresses what is perceived as a "blatant

disregard" for federal workers by
delaying or denying access to critical

personnel files, especially for those
who were "unwarranted[ly] terminated".

This suggests a broader pattern
of administrative actions by the

current administration that are
viewed by some lawmakers and unions

as hostile or detrimental to federal
employees' rights and welfare.

The bill acts as a legislative
counter-measure to protect basic employee

entitlements that may have been undermined
by executive actions or agency practices.

If passed, this bill would significantly
enhance transparency and accountability

in federal personnel management.

It would provide a crucial safety net
for employees, particularly during

periods of transition or termination,
ensuring they have the necessary

documentation to secure new employment,
manage finances, and access benefits.

This legislative effort highlights the
ongoing tension between executive branch

authority over the federal workforce
and congressional oversight aimed

at protecting civil servant rights.

Section 2: Issues That Affect
Current Federal Workers

Updated Guidance on
Strengthening Probationary

Periods in the Federal Service

On 7 August 2025, OPM issued
updated guidance on President

Trump's Executive Order 14284,
titled "Strengthening Probationary

Periods in the Federal Service".

This memo, issued by Veronica E.

Hinton, Associate Director of the U.S.

Office of Personnel Management Office of
Workforce Policy and Innovation, provides

clarifications and new templates for
agencies to implement the Executive Order.

Executive Order 14284, signed on 24
April 2025, established new rules

for managing probationary and trial
periods in both competitive and excepted

services within the federal government.

The updated guidance clarifies
several critical aspects for

current federal employees.

Agencies are now directed to use
probationary and trial periods as an

extension of the hiring process, requiring
agency certification for continued federal

employment beyond these initial periods.

A significant shift is that employees
now bear the responsibility of

demonstrating that their continued
employment is in the public interest.

Agencies are granted sole and exclusive
discretion to consider four factors

when assessing an employee's fitness for
continued employment and whether it is

in the public interest: the employee's
performance and/or conduct, the needs

and interests of the agency, whether the
employee's continued employment would

advance the organizational goals of the
agency or the Government, and whether

the employee's continued employment would
advance the efficiency of the service.

Furthermore, the Executive Order removes
the Merit Systems Protection Board's

jurisdiction to adjudicate appeals
from terminated probationary employees,

though it does allow the OPM Director to
establish appeal procedures by regulation.

These new requirements apply to current
employees serving on probationary or

trial periods and to new employees
appointed after 23 July 2025.

Agencies are also instructed to
communicate these requirements clearly

to current employees, supervisors, and
human resources practitioners, and to

provide written communication to job
candidates considering federal employment.

The certification to retain an
employee is effective on the date the

certifying official signs the form.

Importantly, designated evaluators
should ideally be at least second-line

supervisors or politically appointed
officials at the Senior Executive Service

level to ensure broader organizational
goals are considered in the assessment.

This updated guidance reinforces
the administration's intent to

use probationary periods as a more
rigorous vetting process, shifting

the burden of proof to the employee
and limiting avenues for appeal.

The Executive Order and its updated
guidance significantly alter the

landscape for probationary employees by
removing MSPB jurisdiction and placing

the burden of proof on the employee.

This indicates a clear policy direction
to enhance management's flexibility

in hiring and retention decisions,
potentially making it easier to

remove employees deemed not suitable.

The removal of MSPB jurisdiction
points to an effort to streamline the

termination process and reduce legal
challenges, which aligns with broader

administrative goals of increasing
government efficiency and accountability,

as defined by the administration.

This could lead to a more precarious
initial employment period for new federal

hires, potentially impacting recruitment,
especially for critical roles where

talent acquisition is already challenging.

It may also increase the importance of
strong mentorship and clear performance

expectations during probationary
periods, as the consequences of

not meeting expectations are now
more immediate and less appealable.

Federal employee unions may find
their role in protecting probationary

employees significantly curtailed,
potentially shifting their focus to

advocating for clearer agency guidelines
and fair implementation practices.

Appeals Court Grants Trump Administration
Stay of AFGE's Preliminary Injunction

On 4 August 2025, a panel of judges
from the United States Court of

Appeals for the Ninth Circuit granted
the government's motion to stay,

or pause, a preliminary injunction.

This injunction had been previously issued
by a federal district court judge in a

lawsuit filed by the American Federation
of Government Employees, or AFGE, against

President Trump's executive order,
which excludes most federal agencies

and workers from collective bargaining.

Despite this setback, AFGE has
publicly vowed to continue fighting.

This development highlights the
ongoing legal battle over federal

employees' collective bargaining rights.

The temporary lifting of the injunction
allows the administration's executive

order restricting collective bargaining
to take effect, at least for now.

This decision, even if temporary,
represents a gain for the administration

in its efforts to reduce the
influence of federal employee unions.

It suggests the court found the
government's arguments for a stay

compelling, possibly indicating
a legal pathway for the executive

order And that’s a wrap on this
week’s Federal Workforce Roundup.

The landscape for federal employees
and retirees is constantly shifting,

with major decisions being made about
everything from pay and job security

to retirement benefits and the very
structure of the civil service.

Staying informed is your best tool.

Be sure to subscribe wherever you get your
podcasts, so you never miss an update.

"Hands Off Our NASA": Union
Leaders Rally to Defend Space

Program from Cuts and Privatization

Also on 4 August 2025, AFGE National
President Everett Kelley joined IFPTE

President Matt Biggs, federal employees,
and allies outside the Smithsonian

National Air and Space Museum for a
rally titled "Hands Off Our NASA".

The rally's purpose was to raise awareness
and sound the alarm on what union

leaders are calling the "most dangerous
assault" on NASA's mission and workforce

in the agency's history, referencing
proposed cuts and privatization.

While specific details on the nature of
the proposed cuts and privatization were

not provided in the available information,
the rally highlights significant union

concern over the future direction and
stability of the agency's workforce.

Federal unions are actively
mobilizing against perceived threats

to the workforce and mission of
key federal agencies like NASA.

The fact that union leaders are rallying
against proposed cuts and privatization

at NASA, calling it a "dangerous assault,"
suggests that the administration's

broader agenda may include significant
restructuring or budget reductions for

certain agencies, potentially with a
lean towards private sector involvement.

Unions are perceiving this as a
direct threat to job security and

the public mission of these agencies.

Such actions could lead to significant
workforce disruptions, including

potential layoffs or transfers, and
may impact the long-term capacity and

expertise within federal agencies.

It also signals a potential shift
in the balance between public

and private sector roles in areas
traditionally managed by the government.

AFGE Warns Lawmakers that
USDA Reorganization Poses

Threat to Nation's Food Supply

On 4 August 2025, AFGE also reported
that the Trump administration unveiled a

sweeping restructuring plan for the U.S.

Department of Agriculture, or
USDA, proposing significant

reductions and relocations.

This plan immediately sparked concern
among federal workers represented

by AFGE, who warn that it "poses
threat to Nation's Food Supply".

Similar to the concerns raised regarding
NASA, this indicates a broader trend

of administrative restructuring
across federal agencies, prompting

strong union opposition due to
perceived negative impacts on agency

mission and employee livelihoods.

The administration's restructuring
plans for the USDA are raising

alarms among federal employees and
their unions regarding potential

impacts on critical public services.

AFGE's warning that USDA reorganization,
with "significant reductions and

relocations," threatens the nation's
food supply implies that the

proposed reorganization is not merely
administrative but could involve cuts to

personnel or operational capacities that
unions believe are essential for the USDA

to fulfill its core mission, including
food safety and agricultural support.

The emphasis on the "threat to
Nation's Food Supply" is a strong

rhetorical move to highlight the
public interest implications of

these internal government changes.

These types of reorganizations, if
implemented, could lead to a loss

of institutional knowledge, reduced
service delivery, and diminished

morale within the affected agencies.

It also suggests a potential
re-evaluation of the scope and size

of federal government functions under
the current administration, with

unions acting as key defenders of the
existing structures and public services.

SSA Day of Action and EEO Victories

Further union activity this week includes
the announcement on 4 August 2025 by

Social Security Workers United of an
"SSA Day of Action" for 14 August.

This event aims to raise awareness about
recent administration actions impacting

Social Security Administration, or SSA,
workers and the services they provide

to millions of Americans each year.

Additionally, AFGE reported "Victories"
where their Equal Employment

Opportunity, or EEO, attorneys have
been actively "Fighting for YOU,"

protecting the civil rights of AFGE
members amidst what they describe as

"relentless attacks" on federal and D.C.

government workers in 2025.

These items collectively highlight the
ongoing challenges faced by federal

employees and the crucial role of unions
in defending their rights and advocating

for the integrity of public services.

Federal employees, through their
unions, are actively resisting

perceived administrative pressures
and defending their civil rights

and the services they provide.

The SSA Day of Action addresses
"administration attacks on SSA

workers and the services they
provide," while EEO attorneys are

fighting "relentless attacks".

This indicates a systemic and
multi-faceted pressure on federal

agencies and their workforces, extending
beyond specific executive orders to

broader administrative policies or
budget constraints that impact working

conditions and service delivery.

The focus on EEO victories suggests
that these "attacks" may include

issues related to discrimination or
fair practices within the workplace.

This environment of "relentless attacks"
could contribute to increased stress,

burnout, and potentially a decline
in the federal workforce's ability

to effectively deliver services.

It also underscores the crucial role of
unions and legal advocacy in safeguarding

employee rights and ensuring that federal
agencies can continue to serve the public

effectively amidst political shifts.

Deferred Resignation Program
and Retirement Eligibility

OPM has clarified policies regarding
the deferred resignation program for

2025, providing important guidance
for current federal employees.

This program allows federal
employees to defer their resignation,

which can impact their retirement
benefits accrual and eligibility.

The guidance states that if an employee
is eligible for early or normal

retirement during the deferred resignation
period—specifically, before 30 September

2025—they can accept deferred resignation
and still retire during that period.

Importantly, employees will continue
to accrue retirement benefits during

the deferred resignation period.

Should an employee elect to retire,
either early or And that’s a wrap on

this week’s Federal Workforce Roundup.

The landscape for federal employees
and retirees is constantly shifting,

with major decisions being made about
everything from pay and job security

to retirement benefits and the very
structure of the civil service.

Staying informed is your best tool.

Be sure to subscribe wherever you get your
podcasts, so you never miss an update.

The clarification of the interaction
between deferred resignation

and retirement eligibility for
2025 suggests that the deferred

resignation program is either a new
or recently emphasized initiative.

Such programs are often aimed at
managing workforce transitions

or reducing personnel costs
through voluntary separations.

OPM's detailed clarification is crucial to
ensure employees make informed decisions,

preventing unintended consequences
for their retirement benefits.

These programs can serve as a tool for
agencies to manage workforce size and

composition, potentially leading to a
more targeted approach to staffing needs.

For current employees, understanding
these nuances is vital for strategic

career planning, especially for
those nearing retirement age, as

it offers flexibility but requires
careful consideration of benefit

accrual and final retirement dates.

Section 3: Issues That Affect
Retired Federal Workers

FERS Retirement News Update:
What's Changing in 2025?

An article updated on 5 August
2025, outlines several significant

updates for FERS retirees in 2025.

These include anticipated Cost of Living
Adjustment, or COLA, increases, changes

to the FERS annuity formula, and potential
updates to retirement eligibility rules.

These changes are designed to align
federal retirement benefits with

current economic conditions and ensure
their competitiveness, reflecting

ongoing assessments of the federal
retirement system's financial

health and broader economic trends.

COLA (Cost of Living Adjustment) Updates

For FERS retirees in 2025, a higher
than usual COLA increase is expected,

likely exceeding three percent.

This increase is primarily based on
inflation trends and is specifically

designed to offset rising costs
of living, thereby maintaining

retirees' purchasing power.

This anticipated increase will directly
affect monthly annuity payments,

providing a boost to retirement income.

While the final percentage is
still pending confirmation, it

is anticipated to be significant.

It is important for FERS retirees to note
the specific calculation for their COLA.

FERS retirees typically receive a reduced
COLA if inflation is above two percent.

For instance, if the full COLA based
on the Consumer Price Index for Urban

Wage Earners and Clerical Workers, or
CPI-W, is three percent, FERS retirees

might receive only two percent.

In contrast, Civil Service
Retirement System, or CSRS, retirees

typically receive the full COLA.

For 2025, Social Security and CSRS
annuities are expected to see a 2.5

percent COLA, while FERS annuities
are expected to receive a 2.0

percent COLA.

FERS retirees can anticipate a notable
increase in their annuity payments in

2025 due to expected COLA adjustments,
though the full inflation rate may

not be reflected in their benefit.

This highlights a fundamental difference
between FERS and CSRS retirement

systems regarding inflation protection.

The FERS COLA cap is a deliberate design
feature intended to manage the long-term

financial liabilities of the FERS system.

While beneficial, it means FERS
retirees may still experience a

slight erosion of purchasing power
in periods of higher inflation

compared to their CSRS counterparts.

This differential treatment in COLA
adjustments between FERS and CSRS

retirees is a key factor in long-term
financial planning for federal employees.

It underscores the importance for FERS
retirees to factor in this potential

gap when budgeting, and for current FERS
employees to consider additional savings

strategies, such as maximizing Thrift
Savings Plan contributions, to fully

offset inflation's impact in retirement.

Changes to the FERS Annuity Formula

Another significant update
for 2025 is a slight revision

to the FERS annuity formula.

This adjustment is intended to better
align with economic conditions and ensure

retirement benefits remain competitive.

Employees with thirty or more years of
service may see an increase in the annuity

percentage used to calculate monthly
payments, which could result in a larger

payout for long-term federal workers.

While only minor tweaks are expected,
a complete overhaul of the formula is

not anticipated; rather, the changes are
targeted improvements to benefit those

with extended careers in federal service.

The FERS annuity formula is being
adjusted to potentially offer larger

payouts, particularly for those
with extensive federal service.

The FERS annuity formula is being
"slightly revised" to "better align

with economic conditions" and "ensure
retirement benefits remain competitive,"

with a potential boost for those
with thirty or more years of service.

This indicates an ongoing effort
to ensure the FERS system remains

attractive and sustainable.

The specific targeting of long-term
employees suggests a recognition of their

significant contributions and a desire to
incentivize career-long federal service.

It might also be a response to
recruitment and retention challenges,

aiming to make federal employment
more appealing as a long-term career.

For current federal employees, this
reinforces the value of extended

service under FERS, potentially
encouraging longer careers.

For retirees, this adjustment,
coupled with COLA, contributes to

the overall financial health of
their retirement, though the "slight

revision" suggests incremental
rather than revolutionary changes.

It also reflects a continuous
governmental process of fine-tuning

major benefit programs in response to
economic shifts and workforce needs.

Updates to Retirement
Eligibility for FERS Employees

In 2025, there may be changes to
the FERS retirement eligibility

rules, especially for employees with
fewer than twenty years of service.

Some proposals suggest adjustments to
the eligibility age and years of service

requirements in response to increasing
life expectancies and the financial

health of the federal retirement system.

Potential adjustments to FERS
retirement eligibility rules are on

the horizon, particularly impacting
those with shorter service records.

Proposals suggest adjustments to FERS
eligibility age and service years,

especially for those with less than
twenty years of service, in response

to increasing life expectancies and
the financial health of the system.

This signals a proactive, or reactive
depending on perspective, attempt to

ensure the long-term solvency of the FERS
system in the face of demographic shifts.

As people live longer, retirement
benefits are paid out for more years,

increasing the system's liabilities.

Adjusting eligibility requirements is a
common strategy to manage these costs.

The focus on those with fewer than twenty
years of service might be an attempt

to impact future liabilities without
significantly affecting those closer

to retirement under current rules.

These potential changes could
significantly alter retirement

planning for current federal
employees, particularly younger

workers or those considering
mid-career entry into federal service.

It emphasizes the need for continuous
monitoring of legislative developments

regarding federal retirement
benefits, as eligibility rules are a

critical factor in personal financial
planning and career decisions.

And that’s a wrap on this week’s
Federal Workforce Roundup.

The landscape for federal employees
and retirees is constantly shifting,

with major decisions being made about
everything from pay and job security

to retirement benefits and the very
structure of the civil service.

Staying informed is your best tool.

Be sure to subscribe wherever you get your
podcasts, so you never miss an update.

Thanks for tuning in.

We’ll be back next week to
track the latest developments

and what they mean for you.

Until then, stay engaged and be well.