OPM Sets June 2 Deadline For New Retirement Applications to be Electronic 

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 

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? 

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

 

Trump Proposes No 2026 Raise for Employees, Cuts in Non-Defense Agencies 

Trump Proposes No 2026 Raise for Employees, Cuts in Non-Defense Agencies 

The proposal overall would increase defense spending by 13 percent while cutting non-defense agencies by some 23 percent (except for DHS).

President Trump has issued a preliminary budget proposal for the fiscal year starting in October, calling for no pay raise for federal employees in January but substantial cuts in funding for non-defense agencies.

The “skinny” budget proposal is to be followed by a more detailed one that addresses additional federal workplace benefits and management issues. Follow link to read more from FEDweek. https://www.fedweek.com/fedweek/trump-proposes-no-2026-raise-for-employees-cuts-in-non-defense-agencies/

OPM’s Retirement Modernization Process

OPM’s Retirement Modernization Process

The Office of Personnel Management (OPM) has embarked on a significant modernization of its federal retirement processing systems, aiming to transition from a predominantly paper-based approach to a streamlined, digital-first model. This initiative addresses longstanding inefficiencies and seeks to enhance the retirement experience for federal employees.GAO+3Business Insider+3GAO+3

Historical Context: Challenges in Retirement Processing

For decades, OPM managed retirement applications using paper files stored in a subterranean facility in Boyers, Pennsylvania. This limestone mine houses approximately 26,000 filing cabinets and employs over 700 workers to handle retiree documents—a process that could take several months to complete. Critics, including Elon Musk, have highlighted the system’s inefficiencies, noting that the speed of the mine’s elevator could impact retirement processing times. Business Insider+1WIRED+1

Current Modernization Efforts

OPM’s recent initiatives focus on digitizing the retirement process to improve efficiency and user experience. Key components include:

In a notable development, OPM successfully processed a retirement application entirely digitally within two days, demonstrating the potential of these new systems. Business Insider

Future Outlook

While OPM has made significant strides in modernizing its retirement processing systems, challenges remain. Fully digitizing existing paper records is a complex and costly endeavor, and the transition requires careful management to avoid disruptions. Nonetheless, the agency’s commitment to a digital-first approach and continued investment in technology signal a promising path forward for federal retirement services.GAO+6GAO+6WIRED+6Business InsiderU.S. Office of Personnel Management