By Eric Katz, Government Executive

An agreement between the White House and congressional Republicans would bring a spending freeze to federal agencies next fiscal year in exchange for punting debt ceiling decisions into 2025, averting a crisis for government operations and ensuring federal employees continue to receive their paychecks on time.

With Treasury Department Secretary Janet Yellen warning lawmakers a catastrophic debt default would likely occur June 5 absent congressional action, President Biden and House Speaker Kevin McCarthy, R-Calif., struck the deal to suspend the borrowing limit through Jan. 1, 2025. The agreement would require some belt-tightening that may remind federal employees of the spending caps-era that followed the 2011 Budget Control Act, but the bill avoided the more drastic cuts Republicans had sought. The agreement, dubbed the 2023 Fiscal Responsibility Act, came together after weeks of tense negotiations that followed the White House initially suggesting it would not discuss any outcome other than a “clean” debt ceiling hike.

Eric Katz, Government Executive -

Negotiators looking to strike a bipartisan deal that would avoid a default that could cripple government operations expressed more optimism on Thursday than in days past as they rush to reach an agreement before a potential June 1 deadline.

By Ralph R. Smith, FedSmith

At the monthly Federal Retirement Thrift Investment Board (FRTIB) meeting, one participant asked how a government default would impact the Thrift Savings Plan (TSP).

Typically, when there is a debate about raising the debt ceiling limit imposed by Congress, which has happened several times in recent years, the Treasury Department suspends investments in the G Fund. Interest is eventually paid on investments after the debt limit issue is resolved. The “exceptional circumstances” issue does not impact the ability of participants to make other changes to their TSP account.

By Eric Katz, Government Executive

Negotiations between the White House and congressional Republicans to raise the nation's debt limit and avoid a government default have hit a setback, according to officials on both sides of the talks, as the key players have opted to pause the discussions Friday due to a lack of progress.

Earlier in the week, negotiators were beginning to show signs of optimism, acknowledging they remained apart but had created a path toward an eventual deal. That came to a screeching halt Friday when discussions abruptly ended with no immediate plans to resume them.

By Eric Katz, Government Executive

Top negotiators are elevating debt ceiling talks to a new level, the White House and congressional Republicans said on Tuesday, appointing individuals to reach an agreement before a deadline that could come as soon as June 1.

House Speaker Kevin McCarthy, R-Calif., said a White House meeting on Tuesday was “a little more productive” than one held last week, though the two sides remain “a long way apart.” The biggest step forward, he added, was both sides tapping aides or allies to carry on the conversations aimed at striking a bipartisan deal that would avoid an unprecedented default in the coming weeks.

Erich Wagner, Government Executive -

The bill also would abolish the Merit Systems Protection Board and threatens to reduce former federal employees’ retirement benefits if they file “frivolous” appeals of adverse personnel actions.

Drew Friedman, Federal News Network -

The Office of Personnel Management, looking to fully close the gender pay gap in the federal workforce, is taking a new approach to try to level the playing field for new federal hires.

Proposed regulations OPM published Wednesday would bar agencies from using a federal job candidate’s previous salary history when setting pay as part of an employment offer.

OPM’s proposal aims to address the pay disparity between men, and women and racial minorities, in the federal workforce. In 2022, women federal employees’ pay trailed behind that of their male counterparts by an average of 5.6%. In other words, women made 94.4 cents for every dollar men made in the federal workforce.

FEDweek -

Every day, more than 20 million dedicated public servants in small towns and big cities across our Nation go to work to make sure that America works for all of us. From teaching our children and delivering the mail to controlling air traffic in our skies, overseeing our elections, fighting fires, keeping our streets safe, and defending our country in uniform, these remarkable Americans are the lifeblood of our democracy. This week, we honor them and celebrate all they give to this country.

FMA and federal community organizations push for protections of feds during and after government shutdowns.

Drew Friedman, Federal News Network -

Lawmakers revived a host of bills this week that would impact the federal workforce, through changes to payments, retirement benefits and more.

Staff Cuts and Budget Increases Are Both on Tap for 2019

By Eric Katz, Government Executive

The Trump administration has provided federal agencies with the latitude to request up to a 5 percent funding boost in fiscal 2019, saying the White House may accommodate a “limited number” of programmatic increases in its final blueprint.

Generally, Office of Management and Budget Director Mick Mulvaney said in a memorandum to department and agency heads, agencies should keep their 2019 spending requests in line with what the White House spelled out in the fiscal 2018 budget submission. They should also, however, “identify additional investments in effective programs that further support their mission and fill a clear federal role.”