The FED Weekly

The FED Weekly 19-25 Apr 2026 (Episode 47)
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[00:00:00] Welcome and Overview
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Welcome to The FED Weekly for 19-25 April 2026, 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.

[00:00:44]  Issues That Affect Current and Retired Federal Workers
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Issues That Affect Current and Retired Federal Workers

[00:00:48] DHS Shutdown Fallout
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The DHS Shutdown and National Security

The biggest story of the week is the ongoing partial government shutdown at the Department of Homeland Security. As of 22 April [00:01:00] 2026, this shutdown has officially entered its sixty-eighth day, making it the longest in the history of the United States . This standoff was originally triggered by disagreements in Congress over reforms to the Immigration and Customs Enforcement and Customs and Border Protection agencies following tragic incidents in Minnesota earlier this year .

Inside the department, the strain is reaching a breaking point. We are seeing reports of what some are calling a "paper clip economy." Offices have literally run out of basic supplies like staples and toner. Staff members are forced into "humorously complex workarounds," such as flipping over old documents to print on the blank side or using only three-hole punched paper because it is the only stock left in the supply closets .

For the workforce, the impact is deeply personal. More than 780 Transportation Security Administration officers have resigned since the shutdown began, and absenteeism surged because many officers [00:02:00] simply could not afford the gas or childcare needed to get to work without a regular paycheck . While a presidential directive signed on 27 March 2026 provided some backpay, funding for payroll is expected to dry up again in the first week of May 2026 . There is a glimmer of hope, however. On 23 April 2026, the Senate adopted a budget resolution by a 50 to 48 vote, which sets up a path for a narrow reconciliation bill that could provide up to $70 billion in funding to end the shutdown by 15 May 2026 .

[00:02:37] FERS Funding Alarm
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Retirement Solvency and USPS

There is also growing concern regarding the Federal Employee Retirement System, or FERS. On 10 April 2026, the United States Postal Service suspended its employer contributions to the defined benefit portion of the Civil Service Retirement and Disability Fund. The Postal Service describes this as a [00:03:00] "precautionary measure" to maintain its own liquidity, but organizations like the National Active and Retired Federal Employees Association, or NARFE, are sounding the alarm.

On 21 April 2026, NARFE National President William Shackelford warned that this sets a dangerous precedent for the broader federal community . If the USPS fails to make these payments, it creates an unfunded liability in the pension fund that could eventually affect all federal workers and retirees. Advocates are urging members to contact Congress to find a permanent funding solution for the Postal Service to prevent the erosion of the retirement fund .

[00:03:39] FEHB Data Privacy
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Health Data Privacy Concerns

Privacy is another major topic this week. On 21 April 2026, the Office of Personnel Management advanced a notice of intent to collect vast amounts of service utilization and cost data from insurance carriers in the Federal Employee Health Benefit and Postal Service Health Benefit [00:04:00] programs. OPM wants to aggregate medical claims, pharmacy records, and provider information to help contain costs.

However, there has been significant pushback. On 22 April 2026, several senators demanded that OPM withdraw this plan, citing a lack of transparency about how the data will be secured. NARFE is calling for OPM to commit to seeking only "personally de-identified data" to reduce the risk of identity theft or the data being used inappropriately by the government in its role as an employer .

[00:04:33] New Tax Rules 2026
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Tax Changes Under the One, Big, Beautiful Bill

We are also seeing the full rollout of the One, Big, Beautiful Bill, which was signed into law on 4 July 2025 as Public Law 119-21 . This week, the IRS issued reminders about several new tax provisions that take effect for the 2026 tax year . For active workers, there is the "No Tax on Overtime" rule. This allows [00:05:00] individuals to claim a deduction for the "half" portion of time-and-a-half pay, capped at $12,500 for single filers and $25,000 for those filing jointly .

Retirees are benefiting from an additional $6,000 deduction for seniors age 65 and older, though this phases out for those with modified adjusted gross incomes over $75,000. The bill also permanently extends the individual tax rates set in 2017, meaning most taxpayers are avoiding a major hike that was scheduled to happen this year . For families, the child tax credit has increased to $2,200 per child, and the adoption tax credit is now up to $17,670, with a portion of that being refundable for the first time.

[00:05:47] Equal COLA Push
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The Equal COLA Act

Let’s talk about inflation parity. Advocacy groups spent the week of 19 April 2026 pushing for H.R. 491 and S. 624, known as the Equal COLA Act . [00:06:00] Currently, FERS retirees receive a "diet COLA" when inflation is above 2 percent. For 2026, while CSRS retirees and Social Security recipients saw a 2.8 percent adjustment, FERS annuitants were capped at just 2.0 percent . The Equal COLA Act would end this disparity, ensuring that all federal retirees receive a full adjustment based on the Consumer Price Index.

[00:06:24]  Issues That Affect Retired Federal Workers
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Issues That Affect Retired Federal Workers

[00:06:28] Retirement Backlog Crisis
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The Retirement Processing Backlog

A startling report was released on 23 April 2026 by benefits expert Tammy Flanagan, detailing a growing "maze" within the retirement system. Many federal employees who retired as far back as 30 September 2025, are still waiting for their full annuity payments eight months later.

The report identifies a major bottleneck at the National Finance Center and backlogs within the IRS Human Capital Office . Many retirees are stuck in [00:07:00] "interim pay" status, receiving only a fraction of their earned benefits while waiting for OPM to certify decades-old records or verify divorce decrees. This has forced many retirees to take large, unplanned distributions from their Thrift Savings Plan accounts just to pay for basic living expenses like mortgages and groceries.

The wealth disparity in the TSP is also becoming clearer. As of April 2026, there are 184,532 "TSP millionaires" who have contributed for an average of 28 years. On the other end of the spectrum, more than 4.2 million participants have balances under $50,000, having contributed for an average of six years. For those stuck in the backlog, experts recommend verifying your status with OPM and initiating a congressional inquiry if your case hasn't moved for several weeks .

[00:07:54] RMD and Medicare Deadlines
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Required Minimum Distributions and Medicare Deadlines

We also want to highlight two critical [00:08:00] deadlines that occurred recently. For retirees born in 1952, 1 April 2026 was the mandatory deadline to take the first Required Minimum Distribution from their TSP or traditional IRAs . If you missed this, the IRS penalty is a steep 25 percent of the amount that should have been withdrawn .

Additionally, the Medicare General Enrollment Period ended on 31 March 2026 . If you missed this window and were eligible but not enrolled in Part B, you now face a permanent 10 percent increase in your premiums for every twelve-month period you went without coverage .

[00:08:37] Social Security Fairness
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Social Security Fairness Act (WEP and GPO)

On a more positive note, we are seeing the continued implementation of the Social Security Fairness Act, which was signed on 5 January 2025. This law repealed the Windfall Elimination Provision and the Government Pension Offset, which for decades had unfairly reduced the Social Security benefits of federal retirees [00:09:00] under the CSRS system.

During the week of 19 April 2026, the Social Security Administration continued processing retroactive lump-sum payments dating back to 1 January 2024. Retirees who received these payments should be aware that they carry significant tax implications for the 2026 tax year, as receiving a large lump sum could potentially push you into a higher marginal tax bracket.

[00:09:27]  Issues That Affect Current Federal Workers
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Issues That Affect Current Federal Workers

[00:09:30] Schedule P C Rollout
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Schedule Policy/Career Implementation

On 5 February 2026, OPM finalized the rule for Schedule Policy/Career, or Schedule P/C, which implements Executive Order 14171. Throughout the week of 19 April 2026, agencies have been actively identifying up to 50,000 career positions for reclassification.

These positions are defined as "confidential, policy-determining, policy-making, [00:10:00] or policy-advocating". While these employees will still be hired based on merit and will keep their veterans’ preference, they lose their statutory due-process rights. This means they no longer have the right to appeal removals or disciplinary actions to the Merit Systems Protection Board. The administration argues this is necessary for accountability, but labor unions warn it essentially creates "at-will" employment for a significant portion of the career civil service .

[00:10:28] USDA Relocation Plans
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USDA and Agency Relocations

Mass relocations are also moving forward at a record pace. On 23 April 2026, the Department of Agriculture announced plans to move 2,600 employees out of the Washington, D.C., capital region . The Food Safety Inspection Service is sending two-thirds of its headquarters staff to a new National Food Safety Center in Urbandale, Iowa, and a Science Center in Athens, Georgia .

Other research components, like the Economic Research [00:11:00] Service and the National Institute of Food and Agriculture, are moving to Kansas City . This is actually a second attempt at this move, and critics point out that a previous attempt led to the loss of more than half the staff . Tribal leaders have also panned the plan, warning that moving staff away from the capital will destroy "irreplaceable knowledge" regarding treaty rights and forest management. Employees who refuse these management-directed reassignments must either move by this summer or lose their jobs .

[00:11:32] Job Series Consolidation
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Occupational Series Consolidation

On 24 April 2026, OPM Associate Director Veronica Hinton issued a memorandum titled "Modernization and Consolidation of Occupational Series" . This plan involves consolidating 115 different occupational series across the General Schedule and Wage Grade structures .

While OPM says this will make the classification system more responsive to modern needs, critics are worried [00:12:00] about a "hollowing out" of the federal workforce. They argue that forcing highly specialized technical roles into broad, generalized categories will make it harder to hire for specific expertise and could weaken the independence of the civil service . Agencies have until 11 May 2026 to provide feedback or request to keep certain specialized series .

[00:12:23] Union Rights Showdown
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The Fight for Union Rights

It has also been a historic week for labor relations. On 20 April 2026, a coalition of unions—including AFGE and NFFE—filed a lawsuit against the Federal Labor Relations Authority . They are trying to block a new rule that takes effect on 23 April 2026, which grants political appointees control over union elections at federal agencies . The unions argue this rule was rushed through without public comment and replaces a nonpartisan decision-making process with one controlled by political appointees .

At the [00:13:00] same time, outrage broke out on 20 April 2026 after Defense Secretary Pete Hegseth issued a memo directing the termination of all collective bargaining agreements between the Department of Defense and AFGE. This move follows Executive Order 14251, which union leaders claim has illegally stripped union rights from one million federal employees . AFGE National President Everett Kelley called the move a "slap in the face" to civilian employees, many of whom are veterans themselves .

[00:13:32] Skills Based Hiring Shift
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Moving Toward Skills-Based Hiring

In a more collaborative development, OPM announced on 20 April 2026 that it is removing higher education degree requirements for federal technology jobs, specifically the 2210 series. This shift toward "skills-based hiring" means that applicants will be judged on formal assessments of their actual job-related aptitude rather than whether they have a bachelor's degree. OPM [00:14:00] plans to eventually expand this model to all 604 occupational series roles.

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.