The FED Weekly

This episode of The FED Weekly covers the critical updates for federal employees and retirees from December 7-13, 2025. Key focus areas include the end of the federal Benefits Open Season and a sharp 12.3% increase in health insurance premiums for 2026, compounding a 25% hike over two years. Budget negotiations resulted in another temporary continuing resolution, extending federal funding through March 2026 but restricting agency operations. There’s concern over minimal pay raises: most federal workers receive just a 1.0% increase (with no bump to locality pay), far below inflation, except for specific law enforcement roles, who get 3.8%. Retirees face diminishing real income, as rising healthcare and Medicare costs outpace COLA increases. Legislative action saw Congress pass a bill to protect labor rights, but related protections were stripped from the crucial NDAA, leaving defense workers exposed. Additionally, federal wage-grade employees will see retroactive pay raises in early 2026. The episode closes with advice to stay informed and engaged amid ongoing changes in pay, benefits, and labor rights.