Court Prevents Trump Administration From Banning Collective Bargaining For Federal Employees

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Court Prevents Trump Administration From Banning Collective Bargaining For Federal Employees

On April 25, 2025, U.S. District Judge Paul Friedman issued a temporary injunction blocking a significant portion of President Donald Trump’s executive order that sought to eliminate collective bargaining rights for a large segment of the federal workforce. This executive order, signed in March, aimed to exempt over two dozen federal agencies—including the Departments of Treasury, Defense, Justice, and Health and Human Services—from union bargaining obligations, citing national security concerns. The National Treasury Employees Union (NTEU), representing approximately 160,000 federal employees, challenged the order, arguing that the affected employees do not primarily engage in national security work and that the order was a retaliatory move against unions opposing Trump’s policies. Judge Friedman ruled that the order was unlawful, noting that a detailed opinion would follow. The injunction is seen as a victory for federal workers and unions, though the Trump administration plans to appeal the decision. ​Daily Herald+3AP News+3The Washington Post+3AP News+3Reuters+3The Washington Post+3The Washington Post+1Reuters+1

This ruling is part of a broader pattern of legal challenges against the Trump administration’s efforts to reshape the federal workforce and limit union influence. For instance, in 2018, U.S. District Judge Ketanji Brown Jackson struck down key provisions of Trump’s executive orders that aimed to restrict the power of federal employee unions, stating that the directives undermined federal employees’ right to bargain collectively. ​The Washington Post+1Daily Herald+1The Washington Post+2POLITICO+2AFL-CIO+2

The recent injunction underscores ongoing tensions between the Trump administration and federal employee unions, highlighting the judiciary’s role in checking executive actions that may overstep legal boundaries.

 

Republicans Tee Up Federal Worker Benefit Cuts to Pay For Tax Cuts 

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Republicans Tee Up Federal Worker Benefit Cuts to Pay For Tax Cuts 

Federal workers hired in 2029 would contribute nearly 10% of their basic pay toward a less generous pension if they wish to retain their civil service protections under House lawmakers’ budget reconciliation proposal.

House Republicans last week unveiled a proposal to institute a new round of cuts to federal workers’ retirement benefits, including the imposition of a new pension surcharge unless a new hire elects to serve on an at-will basis.

The House Oversight and Reform Committee will meet Wednesday to consider the panel’s portion of the GOP’s budget reconciliation package to extend and expand tax cuts for the ultrawealthy, first implemented during President Trump’s first term. Follow link to read more from Government Executive. https://www.govexec.com/pay-benefits/2025/04/republicans-tee-federal-worker-benefit-cuts-pay-tax-cuts/404901/

New Rule Would Change the Re-Amortized Debt Formula for Thrift Savings Plan Loans

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New Rule Would Change the Re-Amortized Debt Formula for Thrift Savings Plan Loans

A proposed rule from the Federal Retirement Thrift Investment Board could recalculate how federal employees repay accrued interest on loans from the government’s 401(k)-style retirement plan.

A new rule proposed on April 18 could change how Thrift Savings Plan-based loans are repaid under re-amortization terms.

The Federal Retirement Thrift Investment Board, which governs the federal government’s 401(k)-style retirement plan, detailed its plan to amend a loan re-amortization rule in the Federal Register. The board proposed a combination of accrued interest with the outstanding principal when re-amortizing a loan made out of the TSP. Follow link to read more from Government Executive. https://www.govexec.com/pay-benefits/2025/04/new-rule-would-change-reamortized-debt-formula-thrift-savings-plan-loans/404746/

 

 

Possible Changes for Federal Employees in the 2025 Federal Budget

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Possible Changes for Federal Employees in the 2025 Federal Budget

The 2025 budget process is underway. There are a number of proposals that would impact federal employees from calculating retirement to FEHB premium changes.

Federal Employees Facing 2025 Federal Budget Cuts

2025 has been a stressful year for many federal employees. To be blunt, more stress is probably on the way.

Many of the actions that have already been taken impacting the federal workforce are the result of executive decisions. Changes in the workforce have largely been through a combination of executive orders, court decisions, and lawsuits. Follow link to read more from FedSmith. https://www.fedsmith.com/2025/04/21/possible-changes-for-federal-employees-in-2025-budget/

 

What is The Financial Impact for Federal Employees Returning to the Office?

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What is The Financial Impact for Federal Employees Returning to the Office?

​The financial impact of federal employees returning to the office in 2025 is substantial, affecting both individual workers and government agencies.​WBUR

Increased Commuting and Living Expenses

Federal employees are facing significant financial burdens due to the return-to-office mandates. Commuting costs have risen, with pre-pandemic expenses averaging $10,742 per household annually, increasing to $13,174 in 2023 . Additionally, employees who relocated to more affordable areas during the pandemic are now confronted with the high cost of housing in regions like Washington, D.C., and Northern Virginia . These factors contribute to an “invisible pay cut” estimated at 8–15% of salaries .​The Epoch TimesFed News NetworkOkoone

Agency Expenditures and Operational Challenges

Agencies are incurring significant costs to enforce return-to-office policies. For instance, the Office of Personnel Management (OPM) plans to spend nearly $42 million to relocate a few hundred employees . Despite these expenditures, many agencies lack adequate facilities to accommodate returning staff, leading to makeshift workspaces and concerns about productivity and data security .​Fed News NetworkBusiness Insider

Employee Sentiment and Workforce Implications

Surveys indicate widespread dissatisfaction among federal employees regarding the return-to-office mandates. Approximately 71% of respondents cited commuting as a major concern, and 68% believed their work-life balance would worsen . These sentiments, coupled with the financial and logistical challenges of returning to the office, may impact employee retention and overall workforce morale.​Fed News Network+1FedSmith.com+1

In summary, the return-to-office mandates have led to increased personal expenses for federal employees and significant costs for agencies, while also raising concerns about employee satisfaction and operational efficiency.​Fed News Network

 

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