The FED Weekly

The FED Weekly 26 Apr - 2 May 2026 (Episode 48)
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[00:00:00] Weekly Briefing Intro
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Welcome to The FED Weekly for 26 April to 2 May 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

We start with news that affects the bottom line for everyone in the federal family: your retirement savings. After a rough start to the year, we have some positive news to report regarding the [00:01:00] Thrift Savings Plan, or TSP. As of 1 May 2026, official data shows that every single one of the TSP portfolios finished the month of April in the black. This is a significant turnaround from March 2026, when international conflicts and global economic headwinds caused most funds to tumble.

If you are heavily invested in the equity markets, you likely saw the biggest boost. The C Fund, which tracks the common stocks in the S&P 500, led the pack with a gain of 10.49 percent for the month of April. It was followed closely by the S Fund—that’s the small- and mid-size business portfolio—which grew by 9.96 percent, and the I Fund for international stocks, which climbed by 9.11 percent. Even the more conservative options saw growth, with the G Fund’s government securities increasing by its statutorily mandated 0.36 percent and the F Fund’s fixed income ticking up by [00:02:00] 0.12 percent.

For those of you in the Lifecycle Funds, the gains were also widespread. The L Income Fund, designed for those already drawing from their accounts, grew by 2.95 percent, while the more aggressive target-date funds, like the L 2055 through L 2075, saw gains as high as 9.84 percent. It is a reminder that even in a volatile geopolitical environment, the long-term nature of these investments can provide some resilience.

[00:02:29] House Anti Fraud Bills
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Moving from personal finances to the integrity of federal programs, the House Committee on Oversight and Government Reform had a very busy week. On 29 April 2026, the committee advanced a package of nine bills aimed at stopping fraud and improper payments. This is a massive issue; in Fiscal Year 2025 alone, federal agencies reported a staggering 186 billion dollars in improper payments.

There are three specific bills in this package that you [00:03:00] should know about. First is H.R. 8463, the Pre-Payment Fraud Prevention and Treasury Data Access Act. This bill, introduced by Chairman James Comer, would require the Treasury to work more closely with agencies to verify a payee’s information before the money ever leaves the building. It expands the use of the "Do Not Pay" system and mandates anti-fraud risk evaluations.

The second bill is H.R. 8464, the Stopping Fraudulent Payments Act. This one aims to solve the "pay and chase" problem. Instead of agencies trying to recover money after it has been stolen, this bill gives the Treasury the authority to pause or return payment requests if they are flagged as high-risk for fraud.

And for the workers actually managing these programs, H.R. 8428, the Federal Fraud Prevention Workforce Training Act, is particularly relevant. It requires the Treasury, the Office of Management and Budget, and the [00:04:00] Office of Personnel Management to create a government-wide training program. The goal is to make sure our grant managers and auditors have the tools and best practices they need to spot fraud before it hits the newspapers. This training would also be available to state and local government workers who help administer federal funds.

[00:04:21] Workforce Reform Costs
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While these anti-fraud measures look toward the future, a new report from the Partnership for Public Service looks back at the cost of recent workforce changes. According to an analysis released during the week of 27 April 2026, the administration's federal workforce reforms have cost the U.S. economy more than 165.6 billion dollars. A huge chunk of that—about 53.2 billion dollars—is attributed to lost productivity from "disengaged" civil servants. The report also noted that nearly 764 million dollars has been spent on severance pay for over 10,000 [00:05:00] employees laid off during recent reductions-in-force, or RIFs.

This economic data ties directly into a new Gallup survey that underscores the current mood across the federal workforce. The findings, reported on 28 April 2026, show that fewer federal employees are "thriving" while more are "struggling". Specifically, the percentage of federal workers classified as thriving dropped from 58 percent in 2024 to 48 percent in 2025. Meanwhile, the number of those classified as "struggling" jumped from 37 percent to 47 percent. Researchers describe the situation as a "layer cake of trauma" caused by budget uncertainty, mandatory relocations, and the ongoing threat of reclassifying career positions.

[00:05:48]  Issues That Affect Retired Federal Workers
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Issues That Affect Retired Federal Workers

Now, let's shift our focus to those of you who have already completed your service. A major priority for the retired community remains the [00:06:00] implementation of the Social Security Fairness Act, known as H.R. 82. As a reminder, this law, signed on 5 January 2025, finally repealed the Windfall Elimination Provision and the Government Pension Offset—the so-called "Evil Twins" that have reduced the benefits of millions of public servants for decades.

As we move into May 2026, the Social Security Administration, or SSA, is still in the thick of the implementation process. The law is retroactive to 1 January 2024, but the way you receive your money depends on which "group" the SSA has placed you in. Group 1 includes those who had already applied for benefits but were receiving reduced amounts. The SSA has been working to get these retroactive lump-sum payments out, with many distributed by the end of March.

Group 2, however, includes people who never formally applied for benefits because they assumed the old rules would leave them with [00:07:00] nothing. If you are in this group and apply now, the SSA is generally providing benefits starting only six months before your application date, rather than the full retroactivity back to the start of 2024. If you are a retiree who has been waiting on this, NARFE and other advocacy groups are urging you to check your "MyAccount" on the ssa.gov website to ensure your mailing and direct deposit information is up to date.

[00:07:28] Medicare Part B Myths
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In other retirement news, federal benefits expert Tammy Flanagan released a detailed guide on 30 April 2026, tackling common myths about Medicare Part B and how it coordinates with the Federal Employees Health Benefits, or FEHB, program. One major myth is that Part B is simply too expensive at 202.90 dollars a month in 2026. Flanagan points out that many FEHB plans will actually waive your deductibles, copayments, and coinsurance for outpatient care if Medicare [00:08:00] Part B is your primary payer, which can often save you enough to offset the premium cost.

However, for higher-income retirees, the Income-Related Monthly Adjustment Amount, or IRMAA, remains a factor. In 2026, if your modified adjusted gross income from two years ago was over 109,000 dollars for individuals or 218,000 dollars for joint filers, you will face a monthly surcharge starting at 81.20 dollars. This can bring your total Part B premium to 284.10 dollars a month, or significantly higher for top earners. Flanagan’s advice is to weigh these costs against your potential healthcare needs as you age, rather than just looking at the immediate monthly bill.

[00:08:46] OPM Retirement Modernization
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Finally for our retirees, the Office of Personnel Management, or OPM, is still pushing to modernize its retirement processing. According to its new Performance Plan for 2026 and 2027, [00:09:00] OPM is aggressively moving away from paper-based workflows toward fully digital solutions. This is aimed at speeding up the processing for complex cases like disability or deferred retirements, which have historically caused long delays. While OPM processed more than 33,000 retirement claims in the early part of 2026, many of you are still reporting that it takes months to see your first full annuity check. This digital shift is designed to eventually bring that timeline down to a matter of weeks.

[00:09:33]  Issues That Affect Current Federal Workers
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Issues That Affect Current Federal Workers

Our final segment today is for the active-duty workforce, and the biggest news is a sigh of relief for our colleagues at the Department of Homeland Security. On 30 April 2026, President Trump signed a bipartisan funding bill that officially ended the 76-day DHS shutdown. This was the longest agency-specific shutdown in U.S. history, and the human cost [00:10:00] was significant.

During the week of 26 April 2026, we heard heartbreaking reports from the field. Coast Guard stations in California and Michigan actually had their water turned off because of unpaid utility bills, and an air station in Hawaii had its natural gas lines locked. Thousands of workers had missed multiple paychecks by the time the deal was reached on Thursday, 30 April 2026. The impasse was finally broken when House leadership agreed to move the controversial immigration enforcement funding into a separate "budget reconciliation" process, allowing the broader DHS budget to pass with bipartisan support.

While back pay has been ordered, the financial scars from 76 days without a check don't heal overnight.

[00:10:49] Credit Protection Bill
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That is why on 1 May 2026, Senator Mark Kelly and several of his colleagues introduced the Federal Worker Credit Protection Act of 2026. This bill is [00:11:00] a direct response to stories like those from TSA officers whose credit scores dropped by more than 200 points during the shutdown because they couldn't pay their mortgages or car loans on time.

If passed, the Act would prohibit credit bureaus from reporting negative information about federal workers during a shutdown and for 30 days after it ends. It would also give workers the right to correct adverse information that was already placed on their reports during the 2026 lapse. It’s a crucial piece of legislation designed to ensure that a political fight in Washington doesn't haunt a worker’s financial life for years to come.

[00:11:42] Schedule F Changes
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Beyond the shutdown, OPM continues to redefine what it means to be a career civil servant. On 28 April 2026, OPM Director Scott Kupor issued a memo that excludes all employees in Schedule C and the new Schedule G positions from traditional [00:12:00] performance appraisal requirements. The reasoning is that because these are "at-will" political or policy positions, formal ratings are no longer considered necessary for making decisions about retention or removal.

This is part of the broader implementation of the "Schedule Policy/Career" rule—what many still refer to as Schedule F—which was finalized on 5 February 2026. This rule allows agencies to reclassify thousands of experts in policy-related roles into at-will positions. Union groups, including the AFGE, continue to fight this in court, arguing that it opens the door to political patronage and "the removal of experts whose views run afoul of the prevailing political narrative".

[00:12:42] Quick Hits Pay And Policy
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A few other quick notes for active employees:

• On 21 April 2026, OPM proposed a new rule that would grant a 25 percent hazard pay increase to federal wildland firefighters when they are performing "prescribed burns" to prevent future [00:13:00] wildfires.

• The Department of Veterans Affairs has issued a new notice requiring all supervisors to have specific "critical elements" in their performance plans focused on whistleblower protection and holding employees accountable.

• And finally, on the pay front, House Republicans on the Appropriations Committee blocked efforts on 27 April 2026, to include a federal pay raise in the 2027 budget, with leaders stating that they would not challenge the administration’s proposed pay freeze.

[00:13:32] Wrap Up And Subscribe
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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 [00:14:00] back next week to track the latest developments and what they mean for you. Until then, stay engaged and be well.