The Senate has removed all provisions targeting federal worker benefits and unions from its reconciliation bill. This move comes after the Senate parliamentarian found several proposals from the Homeland Security and Governmental Affairs Committee to be in violation of the Byrd Rule. Initially, the GOP legislation aimed to devalue or eliminate certain federal retirement benefits.
Proposals included charging federal employees to file an appeal with the Merit Systems Protection Board and requiring new hires to choose between a higher Federal Employees Retirement System contribution rate and at-will employment. However, these provisions have been removed from the Senate’s version of the bill. Senate Republicans have revised and removed several measures from their “One Big, Beautiful Bill” to expedite its passage by a self-imposed July 4 deadline.
Among the scrapped provisions was a contentious one that would have required newly hired federal employees to choose between at-will employment and a 10% increase in their FERS contribution rate.
Senate revises worker benefits bill
The latest version of the legislation also no longer includes measures to charge federal unions for the use of official time, impose a 10% fee on federal payroll deductions, or require federal employees to pay $350 to file with the MSPB.
Additional removed provisions included giving bonuses to federal workforce cost-cutters and eliminating funding for electric vehicles in the U.S. Postal Service’s fleet. However, three provisions from HSGAC’s initial list remain in the latest Senate reconciliation bill. One proposal mandates an audit of family members enrolled in the Federal Employees Health Benefits program to prevent ineligible participants, which HSGAC Republicans estimate could save $2.1 billion over the next decade.
Another provision allocates $100 million to the Office of Management and Budget to improve budget and accounting efficiencies in the executive branch. The final retained proposal provides the Pandemic Response Accountability Committee with $88 million to continue its oversight of COVID-19 relief funds. Republicans aim to finalize and pass the reconciliation bill by July 4.
The Senate convened Monday morning to work through a full-day session, with Democrats expected to propose numerous amendments in an effort to stall the legislation.
