The FED Weekly

The FED Weekly 9-15 Aug 2026 (Episode 63)
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[00:00:00] Weekly Briefing Intro
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Welcome to The FED Weekly for 9-15 August 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] OPM Breach Protections
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[00:00:44]  Issues That Affect Current and Retired Federal Workers
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Issues That Affect Current and Retired Federal Workers

Lifetime Identity Protection for Victims of the 2015 OPM Breaches

We begin with an issue that can affect both current federal employees and people who have already left federal [00:01:00] service.

Federal News Network reported on 12 August 2026 that lawmakers are pursuing legislation to extend identity-theft protections for people affected by the Office of Personnel Management data breaches disclosed in 2015. The House legislation is H.R. 10034, officially titled the Reducing the Effects of the Cyberattack on OPM Victims Enduring Response and Protecting Identifiable Information Act, better known as the RECOVER PII Act. Delegate Eleanor Holmes Norton of the District of Columbia introduced the House bill on 3 August 2026, along with Representatives Don Beyer, Steny Hoyer and James Walkinshaw. Senator Mark Warner of Virginia introduced corresponding legislation in the Senate.

This matters to retirees as well as current employees because the compromised records included information involving both current and former federal employees. The Government Accountability Office has [00:02:00] previously documented that the 2015 incidents involved personnel and background-investigation records covering current, former and prospective federal employees and other individuals. Under existing legislation stemming from the breach, qualifying victims have been provided identity-protection services through fiscal year 2026. That protection is scheduled to expire after 30 September 2026. Federal News Network reported that the proposal would replace that expiration with lifetime coverage for affected individuals.

[00:02:36] RECOVER PII Details
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The actual text of H.R. 10034 is quite specific. It would change the existing authorization from fiscal years 2016 through 2026 to fiscal year 2016 and each fiscal year thereafter. It also says coverage would remain effective for the rest of the affected individual’s life and would include at least five million dollars in [00:03:00] identity-theft insurance.

There is another provision that primarily helps people still working. Beginning with fiscal year 2026 funds, agencies could reimburse their employees—and certain contractor employees—for up to 100 percent of the cost of qualifying privacy-enhancing services, provided appropriate documentation is submitted. The bill broadly describes such services as technology or processes designed to reduce or suppress exposure of personal information. The importance here is the timing. Federal News Network noted that about 22 million people were associated with information compromised during the 2015 incident, while the current federally funded protection is approaching its 30 September 2026 expiration.

For affected current employees and retirees, however, nothing changes yet. H.R. 10034 remains proposed legislation. Until Congress passes a measure and the [00:04:00] president signs it, the existing expiration date remains the important date to watch.

[00:04:05] 2027 COLA Begins
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[00:04:05]  Issues That Affect Retired Federal Workers
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Issues That Affect Retired Federal Workers

The First Number in the 2027 Federal Retiree COLA Calculation

The most consequential development specifically for federal retirees this week came on 12 August 2026, when the Bureau of Labor Statistics released its July inflation data. The Consumer Price Index for Urban Wage Earners and Clerical Workers—the CPI-W—stood at 327.104 for July 2026, an increase of 3.4 percent compared with July 2025. That number matters because July is the first of the three months used to determine the 2027 federal retirement cost-of-living adjustment.

Federal retirement COLAs are based on the average CPI-W for July, August and September, compared with the corresponding third-quarter average used for the previous adjustment. FedSmith reported on 12 August [00:05:00] 2026 that the third-quarter 2025 CPI-W average being used as the comparison point is 317.265. Using July alone, the 327.104 index is roughly 3.1 percent above that baseline. But this is crucial: that does not mean the 2027 COLA is 3.1 percent. We still need the August and September CPI-W readings before the actual three-month calculation can be completed.

The next major dates are therefore 11 September 2026, when the August inflation report is scheduled for release, and 14 October 2026, when the September report is scheduled. Once the September figure is available, the three-month average can be calculated and the 2027 adjustment determined.

[00:05:51] Paid Leave Proposal
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[00:05:51]  Issues That Affect Current Federal Workers
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Issues That Affect Current Federal Workers

Comprehensive Paid Leave for Federal Employees Act

Federal News Network highlighted the Comprehensive [00:06:00] Paid Leave for Federal Employees Act in its 12 August 2026 review of pending federal workforce legislation. The Senate bill is S. 5168, the Comprehensive Paid Leave for Federal Employees Act. Senator Brian Schatz of Hawaii introduced it on 29 July 2026, with Senators Alex Padilla, Bernie Sanders, Tammy Duckworth, Kirsten Gillibrand, Chris Van Hollen, Martin Heinrich and Elizabeth Warren listed as original cosponsors. It was referred to the Senate Homeland Security and Governmental Affairs Committee.

The proposal would expand the federal government’s existing paid family-leave system so qualifying employees could receive paid leave for the broader range of circumstances covered by federal family and medical leave law.

Federal News Network explained that eligible federal employees currently may take up to 12 weeks of family and medical leave, but outside the existing paid parental-leave program, [00:07:00] that leave can generally be unpaid. S. 5168 would make up to 12 weeks paid for qualifying family and medical purposes, including an employee’s own serious health condition or caring for an immediate family member with a serious health condition.

Again, this proposal has not become law. Employees should not make leave decisions today assuming these expanded benefits are already available.

[00:07:26] Workers Comp Access
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Workers’ Compensation Access for Injured Federal Employees

Another bill getting attention during this week’s reporting would change who can certify and treat federal workers with job-related injuries.

The legislation is S. 3296, officially the Improving Access to Workers’ Compensation for Injured Federal Workers Act of 2025. Coverage published on 11 August 2026 reported that the measure had advanced from the Senate Homeland Security and Governmental Affairs [00:08:00] Committee and was heading toward possible consideration by the full Senate. The committee formally ordered S. 3296 reported favorably by voice vote at its 6 August 2026 business meeting.

Under current Federal Employees’ Compensation Act rules described by Senator Susan Collins’ office, physicians generally perform key functions such as diagnosing a compensable condition, certifying an injury and overseeing treatment. S. 3296 would amend those rules to allow physician assistants and nurse practitioners to certify injuries and oversee treatment for job-related federal employee injuries or illnesses when those services are consistent with their scope of practice under state law.

For employees in rural communities, or areas where seeing a physician involves significant travel or long waits, supporters argue that expanding the eligible provider pool could make workers’ compensation treatment easier to obtain. The [00:09:00] bill is still moving through Congress, so the existing Federal Employees’ Compensation Act rules remain in force unless and until legislation is enacted.

[00:09:10] Skills Based Contracting
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Skills-Based Federal Contracting Act

Another proposal moving forward deals with education requirements in federal contracting.

The measure is H.R. 5235, the Skills-Based Federal Contracting Act of 2025.

Federal News Network reported on 12 August 2026 that the legislation had recently advanced unanimously through the Senate Homeland Security and Governmental Affairs Committee after previously clearing the House. Committee records confirm that H.R. 5235 was advanced on a 10-to-zero vote.

The legislation would generally prohibit federal agencies from imposing minimum educational requirements on proposed contractor personnel during covered contract solicitations unless a contracting officer documents why a degree or other [00:10:00] educational requirement is necessary. Although this primarily concerns the contractor workforce, federal employees involved in acquisitions, human capital, program management and contractor oversight could see changes in how agencies write solicitations and evaluate contractor staffing requirements if the measure becomes law.

[00:10:21] Indoor Air Quality Review
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Federal Facilities Indoor Air Quality Assessment Act

Workplace health and safety also appeared in this week’s congressional coverage.

The bill is H.R. 9886, the Federal Facilities Indoor Air Quality Assessment Act.

Federal News Network included the proposal in its 12 August 2026 roundup of workforce legislation. H.R. 9886 would direct the Government Accountability Office to conduct a comprehensive review of indoor air quality, ventilation, and heating and air-conditioning performance throughout federal buildings and facilities.

The review would examine whether [00:11:00] facilities meet applicable standards, how agencies test and document indoor air quality, the frequency and causes of deficiencies, and whether existing oversight and remediation procedures are effective. The timeline is significant. The Government Accountability Office would have 12 months after enactment to submit findings and recommendations to Congress. Federal agencies identified as having material indoor-air-quality deficiencies would then have six months after that report to submit corrective-action plans. Once again, this legislation remains pending.

[00:11:36] STOP the SWAMP Act
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STOP the SWAMP Act and Federal Employee Accountability

Finally, Congress is considering a much more punitive proposal involving federal employees who testify in congressional investigations.

The House measure is H.R. 9991, and its Senate counterpart is S. 5228. Both are titled the Safeguarding Transparency and Oversight to Prevent the Spread of [00:12:00] Washington’s Administrative Misconduct and Partisanship Act, or the STOP the SWAMP Act. S. 5228 was introduced by Senator Roger Marshall on 4 August 2026, while H.R. 9991 was introduced by Representative Richard McCormick on 30 July 2026. Federal News Network brought the measures into its federal workforce roundup on 12 August 2026.

Under the proposals, a person summoned as a witness in a congressional investigation who appears but refuses to answer a pertinent question could face existing criminal penalties and also be barred from federal employment. Someone finally convicted of specified perjury or false-statement offenses connected with congressional testimony could likewise be debarred from federal employment. For someone who is already a federal employee, the bill text goes further: a covered violation would require removal from the civil service, although the legislation also provides for [00:13:00] judicial review of the employment debarment.

These provisions would represent a significant change in federal employment law if enacted. But as of 15 August 2026, they remain legislative proposals rather than enforceable employment rules.

[00:13:16] Wrap Up and Next Dates
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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 back next week to track the latest developments and what they mean for you. Until then, stay engaged and be well.