The FED Weekly

We deliver the latest updates affecting federal employees and retirees for the week of 10-16 May 2026. The Senate approved a rule to withhold Senators’ pay during future shutdowns, echoing concerns about the disconnect between lawmakers and affected federal workers. Ongoing shutdowns caused a significant backlog in retirement claims. A new TIGTA report highlighted rising federal employee tax delinquency, with proposed measures to enable interagency sharing of noncompliance data. The IRS issued guidelines for Trump Accounts—a new retirement vehicle for minors—launching July 2026. Retirees received guidance on FEHB suspensions for Medicare Advantage and the 2026 cost-of-living adjustments: 2.8% for CSRS, 2% for FERS. Tammy Flanagan underscored the benefits of delaying retirement and Social Security claims for higher payouts. New legislation would protect employee credit during shutdowns and introduce voluntary short-term disability insurance. The fiscal year 2027 spending bill proposes a civilian pay freeze despite an alternative 4.1% raise. Wildland firefighter hazard pay and EEOC/MSPB settlement review initiatives were outlined, alongside tightening of telework policies and a proposed ban on DC congestion tolls. Speaker A emphasized the ongoing, shifting landscape and encouraged listeners to stay informed.