This report provides an update on issues affecting federal managers. As always, I encourage you to visit www.fedmanagers.org on a regular basis for more information on these and other matters.

Also, be sure to look for the monthly FMA Grassroots Update, where we offer links to action letters and FMA-PAC matters we do not address in the Washington Report. The grassroots newsletter is sent exclusively to non-governmental email addresses to avoid any Hatch Act violations. If you are not receiving it, contact the national office to provide your non-governmental email address.

Please feel free to provide feedback any time by emailing Greg Stanford at gstanford@fedmanagers.org, or by calling the National Office at (703) 683-8700. Thank you for your membership in FMA. It’s an honor to represent your interests before Congress and the administration.

On February 26, the Office of Management and Budget (OMB) and Office of Personnel Management (OPM) released a memo outlining guidance on agency RIF and reorganization plans as ordered by President Trump’s Executive Order “Implementing the President’s Department of Government Efficiency Workforce Optimization Initiative.” The guidance requires agency heads to move forward on “large-scale reductions in force,” and directs agencies to submit Agency Reorganization Plans no later than March 13, 2025.

“Agencies should focus on the maximum elimination of functions that are not statutorily mandated while driving the highest-quality, most efficient delivery of their statutorily required functions,” the memo reads. After the plans are submitted, agencies have until April 14, 2025, to provide detailed organizational charts indicating which employees will be cut.

Agencies immediately began compliance. In recent days, reports have suggested the Department of Veterans Affairs will cut as many as 83,000 jobs. The Internal Revenue Service may slash as many as half of its 90,000 employees – in the middle of tax return season. The Department of Defense is expected to see RIFs of approximately 5-8 percent of its total staff.

In February, the Office of Personnel Management (OPM) asked agencies to submit lists of their probationary employees and whether the agencies wanted to keep them. The memo noted probationary period workers are the easiest to terminate from their jobs.

OPM subsequently revised its guidance, stating “Please note that, by this memorandum, OPM is not directing agencies to take any specific performance-based actions regarding probationary employees,” and that “agencies have ultimate decision-making authority over, and responsibility for, such personnel actions.”

However, the OPM guidance led to the immediate termination of tens of thousands of employees in their probationary periods. Nearly 7,000 Internal Revenue Service probationary employees were terminated, and 5,400 employees at the Defense Logistics Agency (DLA) have been let go, as well.

Federal employees were blindsided on Saturday, February 23, with an email giving them a little over 48 hours to reply to an email from HR@OPM.gov the Office of Personnel Management (OPM) directing employees to explain what they had accomplished the week before. Many questioned if it was genuine and authentic, and whether or not to reply.

“Consistent with President Trump’s instructions, all federal employees will shortly receive an email requesting to understand what they got done last week,” posted Elon Musk, who is heading the so-called Department of Government Efficiency (DOGE) on X. “Failure to respond will be taken as a resignation.” OPM then said responding to the email was voluntary and not considered a resignation, giving agencies the authority to request a response or not.

Federal agencies have until mid-April 2025 to provide recommended relocations for agencies and departments outside of the Washington, D.C., capital region to “less costly parts of the country” as part of a Department of Government Efficiency’s (DOGE) push to reduce costs and the size of the federal workforce. President Trump campaigned on a promise to move up to 100,000 federal employees outside of the DC area to “places filled with patriots.”

The order directs agency heads to identify current leases and decide whether to terminate them within 30 days. It gives the General Services Administration 60 days to submit a plan to get out of government-owned property considered unnecessary.

More than 80 percent of the federal workforce already live and work outside of the DC area.

The Social Security Administration (SSA) will consolidate from 10 regional offices to four and reorganize its headquarters as part of a major shift in operations. The agency is also facing major downsizing of its workforce – already at a 50-year staffing low – and is in process of cancelling leases for nearly 50 field offices around the country. This comes as Department of Government Efficiency (DOGE) head Elon Musk recently called Social Security “the biggest Ponzi scheme of all time.”

Senate Democrats and other supporters of the SSA – and those who rely on Social Security benefits – expressed deep concerns about an effort to sabotage the embattled agency and potentially privatize it.

On February 25, the Social Security Administration (SSA) updated its information on the implementation of the Social Security Fairness Act, legislation FMA helped pass to repeal both the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). Specifically, SSA announced the agency would begin to pay retroactive benefits that week, and former FMA National Secretary Dick Oppedisano confirmed he has received a payment.

"If a beneficiary is due retroactive benefits as a result of the Act, they will receive a one-time retroactive payment, deposited into the bank account SSA has on file, by the end of March. This retroactive payment will cover the increase in their benefit amount back to January 2024, the month when WEP and GPO no longer apply," the agency states. SSA cautions impacted beneficiaries to wait until April 2025 before contacting SSA with concerns about the status of their retroactive payments, as the process will proceed incrementally.

On February 25, the House of Representatives voted to advance “one, big beautiful bill,” President Trump’s preferred method to advance his agenda. It sets the stage for congressional Republicans to extend Trump’s 2017 tax cuts, as well as enhanced border security, defense spending, and “energy dominance.” The measure passed by a vote of 217-215.

During debate on the budget, Ways and Means Committee Chairman Jason Smith (R-MO) urged his colleagues to support the measure. “Protecting and building on President Trump’s signature tax cuts will deliver an America First economy to usher in a new golden age of prosperity,” Smith said.

The resolution includes reconciliation instructions that direct 11 House committees to submit legislation that will increase or decrease the deficit over FY2025-FY2034 and increase the statutory debt limit by specified amounts. Pursuant to the bill, the Oversight and Accountability Committee must submit $50 billion in cuts to over 10 years to the House Budget Committee by March 27, 2025.

On Monday, February 24, Reps. Gerry Connolly (D-CA), David Valadao (R-CA), Nikki Budzinski (D-IL), and Don Bacon (R-NE), reintroduced the Federal Retirement Fairness Act (H.R. 1522), FMA-endorsed bipartisan legislation that would allow FERS employees to buy back temporary and intermittent times toward their retirement benefits. FMA has long supported this legislation, previously championed by former Congressman Derek Kilmer (D-WA), and will work with all of the bill's cosponsors to bring a measure of fairness to affected federal employees.

“No matter how they begin their careers, all federal employees deserve the opportunity to retire on time and with the full benefits they have earned,” Connolly said in a statement. “The federal workforce is our nation’s greatest asset. They serve the American people with dignity and dedication every single day. In this dark and uncertain hour for America’s civil servants, I am proud to join my colleagues in this important effort to guarantee the fair retirements that they deserve.”

The 119^th Congress convened on January 3, 2025, and members got right to work introducing bills addressing several of FMA’s legislative priorities. See below for a brief spotlight on some of them:

Federal Adjustment to Income Rates (FAIR) Act

Federal pay has not kept pace with inflation, and retention of feds is at severe risk. The Federal Salary Council recently reported that federal workers earned nearly 25 percent less than private sector counterparts, a growing disparity that will only force more of the best and brightest out of federal service. FMA urges Congress to provide for a fair and reasonable pay raise that reflects the needs of the workforce for 2026.

Rep. Gerry Connolly (D-VA) and Sen. Brian Schatz (D-HI) introduced the Federal Adjustment to Income Rates (FAIR) Act (H.R. 493 / S. 126) which would provide a 4.3 percent pay raise in 2026.

Rep. Sheila Cherfilus-McCormick (D-FL) introduced the Compassion for Vulnerable and Struggling Workers Act (H.R. 1597), which would give any civil servant wrongfully terminated between January 20, 2025 through the end of the year full enrollment in the Federal Employee Health Benefits Program (FEHBP). It would fund FEHBP through savings identified by the Department of Government Efficiency (DOGE). H.R. 1597 has six cosponsors, including House Oversight and Accountability Ranking Member Gerry Connolly (D-VA).

With one week remaining before the current continuing resolution (CR) funding the government expires, it is a near certainty Congress will attempt to pass still another CR that would extend through the remainer of Fiscal Year 2025.

Congressional appropriators are nearing the finish line on a deal on Fiscal Year 2025 spending, with House Appropriations Committee Ranking Member Rosa DeLauro (D-CT) calling an agreement on topline numbers “imminent.” However, with less than a week remaining on the current CR, it is unlikely Congress will have the time to finalize subcommittee allocations for the twelve appropriations bills before the March 14 deadline, averting a government shutdown.

On March 4, a federal judge blocked the Trump administration from firing Cathy Harris from the Merit Systems Protection Board (MSPB). Harris, who’s term does not expire until 2028, was notified on February 11 of her removal. However, in a lawsuit she argued an MSPB member can only be removed for “inefficiency, neglect of duty, or malfeasance in office.” The MSPB is an independent, quasi-judicial agency in the Executive branch that serves as the guardian of federal merit systems, and has seen a major surge in cases recently due to mass firings across the workforce.

Harris’ removal was judged to be unlawful, as it did not provide a justification.

The Federal Managers Association's Town Hall meeting in February was well attended and helped our members and staff to learn from each other, and better understand what is happening during this confusing time of rapid change. The president has issued executive orders at an unprecedented rate. While nearly impossible to keep up with the ever-changing landscape, FMA staff and leadership will brief our members on the latest matters of which we are aware, and more importantly, hear from you and your fellow FMA members.

Please join us on March 12 at 7 PM Eastern Time, to share your concerns, hear what others are experiencing in their federal workplaces, and to learn from each other. The stories we heard from our members over the last month have been invaluable and have informed our discussions with members of Congress.

FMA's 87^th National Convention & Management Training Seminar will be held March 23 - 26, 2025, at the Hilton Alexandria Old Town. The theme this year is Meeting the Leadership Challenges of Today and registration is open. The hotel is conveniently located across the street from the King Street Metro Station and near the FMA National Office.

You can also make your hotel reservations now. For the most up to date information, including the convention agenda, visit FMA's website regularly.