Judge Blocks Trump’s Unconstitutional Reorganization of Government
In a major victory for AFGE and allies, a district court judge May 9 issued a temporary restraining order (TRO) blocking President Trump’s unconstitutional reorganization of the federal government. Follow link to read more from the American Federation of Government Employees. https://www.afge.org/article/chaos-and-corruption-weekly-digest-week-16/
Trump Seeks To Raise Taxes For Those Making 2.5 Million or More Per Year
President Donald Trump is currently advocating for a tax increase on the wealthiest Americans, specifically targeting individuals earning over $2.5 million annually and joint filers earning over $5 million. He has proposed raising the top marginal tax rate from 37% to 39.6%, effectively reversing a portion of the tax cuts implemented during his 2017 Tax Cuts and Jobs Act (TCJA). Avior Wealth Management+3Reuters+3The Washington Post+3
This proposal is part of a broader tax reform package that also includes eliminating the carried interest loophole for Wall Street investors and providing tax exemptions for tips, overtime pay, and Social Security benefits. The aim is to extend the TCJA provisions while addressing fiscal concerns. Reuters+1Slattery & Holman P.C |+1The Guardian+3The Economic Times+3Avior Wealth Management+3
The initiative has sparked debate within the Republican Party. While populist figures like Steve Bannon and Vice President JD Vance support the tax hike on millionaires to appeal to working-class voters and address the national debt, traditional conservatives such as Newt Gingrich and Larry Kudlow oppose it, fearing economic repercussions and a departure from longstanding GOP tax principles. AP News+2The Washington Post+2The Guardian+2
As of now, the proposal is under consideration, and its passage remains uncertain due to internal party divisions and the political risks associated with altering tax policies. The Guardian+2The Washington Post+2AP News+2
OPM Sets June 2 Deadline For New Retirement Applications to be Electronic
The antiquated paper-based federal retirement system has been a target for federal modernization for years and was called out by Elon Musk.
The Office of Personnel Management is giving agencies less than a month to start submitting all new retirement applications for federal employees electronically, moving away from a largely paper-based system.
In a Wednesday memo, OPM acting Director Charles Ezell gave agencies that are served by the National Finance Center and Interior Business Center — two federal shared services providers offering HR support — a deadline of June 2 to start processing retirements electronically. Follow link to read more from Fedscoop. https://fedscoop.com/opm-sets-june-2-deadline-for-new-retirement-applications-to-be-electronic/
19 States Sue Trump Administration Over Mass Layoffs At HHS
States argue key programs on which they have relied are no longer operating and ask the court to reinstate workers.
The laying off of 10,000 Health and Human Services Department employees was unlawful and should be reversed, 19 states bringing a lawsuit against the Trump administration said in court filings Monday, adding the agency had “no constitutional or statutory authority” to carry out the staffing cuts. Follow link to read more from Government Executive. https://www.govexec.com/workforce/2025/05/19-states-sue-trump-administration-over-mass-layoffs-hhs/405075/
What Is Trump’s Fiscal Year 2026 Discretionary Budget Request?
President Donald Trump’s Fiscal Year 2026 discretionary budget proposal, released on May 2, 2025, outlines significant shifts in federal spending priorities. The proposal includes substantial cuts to non-defense programs while increasing allocations for defense, homeland security, and border enforcement. https://www.alaskasnewssource.com+5WSJ+5The Washington Post+5Center on Budget and Policy Priorities
Key Highlights of the FY 2026 Budget Proposal:
Non-Defense Discretionary Spending Cuts
Total Reduction: The budget proposes a $163 billion (approximately 23%) cut to non-defense discretionary spending, reducing it to $557 billion.
Targeted Agencies and Programs:
Education: Significant reductions affecting K–12 and higher education funding.
Health and Science:
National Institutes of Health (NIH): Funding reduced from $47 billion to $27 billion, a 40% cut.
Centers for Disease Control and Prevention (CDC): Budget decreased from $9.2 billion to $5.2 billion, a 44% reduction.
National Science Foundation (NSF): Funding slashed by 55%, from $9 billion to $4 billion.
Environmental Programs: Cuts to the Environmental Protection Agency (EPA) and elimination of various climate-related initiatives.
Foreign Aid: Dismantling of remaining parts of the U.S. Agency for International Development (USAID). Business Insider+5WSJ+5The Washington Post+5
Defense and Homeland Security Increases
Defense Spending: An increase of 13%, bringing the total to $1.01 trillion.
Homeland Security: A 65% increase in funding.
Border Security: Allocation of $69 billion for border enforcement, including hiring 20,000 new immigration officers and constructing a 700-mile border wall. WDNY Radio+1WSJ+1WSJAP News
Tax Policy and Social Programs
Tax Cuts: The proposal includes tax breaks, though specific details are pending legislative development.
Social Programs: Proposed cuts to Medicaid, food stamps, and other safety net programs, with an emphasis on stricter eligibility requirements. AP News