The One Big Beautiful Bill

The One Big Beautiful Bill Act (H.R. 1), Was Approved Sunday Night and Contains Some Important Changes of Interest To Federal Employees

 The “One Big Beautiful Bill Act” (H.R. 1), narrowly passed by the U.S. House of Representatives on May 22, 2025, includes several provisions that significantly impact federal employees, particularly concerning retirement benefits and healthcare.

Key Changes Affecting Federal Employees:

 Retirement Benefit Adjustments

The bill proposes modifications to federal retirement benefits, which may include:

• Increased Employee Contributions: Federal employees might be required to contribute more toward their retirement plans.
• Reduced Pension Calculations: Adjustments in how pensions are calculated could potentially lower future retirement payouts. Ostberg Sinclair+2Tax Foundation+2Seeking Alpha+2
• Changes to COLA: Cost-of-Living Adjustments (COLA) for retirees may be altered, affecting the annual increases in retirement benefits.

These changes aim to reduce federal spending but could lead to decreased retirement income for federal workers.

2. Healthcare and Social Program Reforms

The legislation introduces stricter work requirements for programs like Medicaid and the Supplemental Nutrition Assistance Program (SNAP). While these changes primarily target low-income populations, they could indirectly affect federal employees who rely on these programs or work in agencies administering them. AP News+1The Guardian+1

 Tax Provisions

The bill makes permanent the tax cuts introduced in 2017, which could affect federal employees’ take-home pay and retirement planning. Additionally, it includes tax incentives such as deductions for auto loan interest on American-made vehicles and expanded child tax credits. KPMG+9Seeking Alpha+9The Washington Post+9AP News+5Representative Nicole Malliotakis+5The Times+5

 Next Steps

The bill now moves to the Senate, where it is expected to face further debate and potential amendments. Federal employees should stay informed about these developments, as the final version of the bill could include additional changes impacting their employment and benefits.

For a detailed breakdown of the bill’s provisions, you can refer to the section-by-section summary provided by the House Ways and Means Committee. Ways and Means