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 January 5, 2025, FMA Director of Government and Public Affairs Greg Stanford had the distinct honor and privilege of representing the Federal Managers Association at the White House as President Biden signed the Social Security Fairness Act into law. The ceremony, which took place in the East Room, was streamed live on C-SPAN. FMA fought for decades for this legislation, which repeals the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP). The House and Senate both passed the bill, sponsored by Representatives Garret Graves (R-LA) and Abigail Spanberger (D-VA), in strong bipartisan fashion late in the 118th Congress. It passed the House by a vote of 327-75 and the Senate by a vote of 76-20. President Biden's signature officially enacted the bill into law. Following the ceremony, Stanford was proud to view the signed bill and briefly visit with President Biden on behalf of FMA.

When the Senate passed the bill, FMA National President Craig Carter wrote eloquently about this landmark legislation which restores full Social Security benefits earned by millions of public servants and their beneficiaries going forward. He noted that FMA members toiled for decades, walking the halls of Congress to advocate and build support for it. The Social Security Fairness Act will prevent the unjust withholding of nearly $200 billion from civil servants like current and retired FMA members, policemen, firemen, teachers and other public servants who have been unjustly penalized for their service. The bill eliminates the reduction of Social Security benefits with respect to benefits payable for months after December 2023.

Despite some 11th hour complications and calls for a government shutdown by several in Congress, the 118th Congress passed a continuing resolution (CR) to fund the government through March 14, 2025. FMA National President Craig Carter wrote every member of both the House and the Senate urging them to prevent a devastating shutdown mere days before the Christmas holiday.

Further work on Fiscal Year 2025 appropriations will be punted to the 119th Congress and President-elect Donald Trump. FY 2025 began on October 1, 2024, nearly three-and-a-half months ago. Legislators will need to be mindful to finalize full-year appropriations by the end of April 2025. Under the Fiscal Responsibility Act, if they pass into May 2025 under a CR, both defense and non-defense funding levels will be reduced by 1 percent.

Shortly before New Years Day, President Biden signed an executive order finalizing the average 2 percent pay raise for 2025. This is the last step that formalizes the pay raise for the year, which includes a 1.7 percent across-the-board increase and an average 0.3 percent boost to locality pay rates. The raise will take effect on the first full pay period in 2025. This concludes the pay raise process, which began with Biden’s proposal of a 2 percent raise in his Fiscal Year 2025 budget request in March 2024. Most recently, FMA pushed for a 4.5 percent raise for feds to maintain the traditional pay parity with the uniformed military.

The 2 percent raise for 2025 is the lowest in several years, following the 5.2 percent raise in 2024 and the 4.6 percent average increase in 2023.

Despite those two solid years, according to the Federal Salary Council, the pay gap between the federal workforce and the private sector is approximately 25 percent. FMA anticipates House Oversight and Accountability Ranking Member Gerry Connolly (D-VA) and Senator Brian Schatz (D-HI) will once again introduce the FAIR Act later this month, in the first session of the 119th Congress, calling for a larger pay raise in 2026. We will eagerly await the introduction of those bills, as well as President-elect Trump’s budget request for Fiscal Year 2026, which will propel negotiations on the pay raise for next year.

On Monday, December 16, the House of Representatives approved the Chance to Compete Act (S. 59), bipartisan legislation endorsed by the Federal Managers Association (FMA), by a voice vote. This followed Senate passage of the bill late the week prior. President Biden signed the bill into law (P.L. 118-188) on December 23, 2024.

FMA National President Craig Carter applauded final passage of the bill, for which the association has advocated for years. He described it as a “commonsense, bipartisan” piece of legislation to improve hiring in the federal workforce.

“This bill gets away from self-assessment questionnaires and creates new assessments to consider an applicants’ skills and technical qualifications,” Carter wrote. “It brings subject-matter experts and hiring managers deeper into the hiring process, and removes rigid higher education requirements, relying instead on knowledge and skills.”

In the last weeks of the 118th Congress, both the House and Senate passed the Fiscal Year 2025 National Defense Authorization Act (NDAA). The Senate passed the measure by a vote of 85-14, while the House passed the final conference report by a vote of 281-140. President Biden signed it into law on December 23, 2024. This is the 64th consecutive year Congress has passed the NDAA.

In a statement on final passage, Senate Armed Services Committee (SASC) Chairman Jack Reed (D-RI) said, “I am proud that the Senate has voted by a wide, bipartisan margin to pass the NDAA. This is a practical bill that is laser-focused on the threats we face. Recognizing the urgent challenge China poses, this NDAA fully invests in the Pacific Deterrence Initiative and our regional networks, including AUKUS, the Quad, and our multilateral partnerships with Japan, South Korea, the Philippines, and Taiwan. Among other cutting-edge technologies, the bill authorizes increased funding for our naval vessels, submarines, aircraft, combat vehicles, missile defenses, and UAS platforms to deter adversaries like Russia, Iran, and North Korea.”

As noted last month, Congressional Republicans are planning an ambitious strategy using budget reconciliation early in the 119th Congress. It is unclear if they will attempt to pass one bill or two separate packages. Initial reports suggested a two-bill approach, with an initial defense, energy, and border package in the first month of the new administration, followed by a second package that would lift the debt limit and renew the 2017 tax cuts that are scheduled to expire at the end of 2025.

President-elect Trump and House Speaker Mike Johnson (R-LA) prefer a single reconciliation package, while Senate GOP leaders generally prefer the two-pronged approach. Republican senators met with Trump earlier this week to discuss how to advance his agenda through Congress and the budget reconciliation process.

Join us on Thursday, February 20, at 8:00 PM Eastern, for a Federal Managers Association Issue Briefs discussion. FMA’s Government and Public Affairs Director Greg Stanford will present on the current state of FMA Issue Briefs for the coming year, and highlight areas where we believe we can make progress in the first session of the 119th Congress. Attendees are encouraged to come prepared to ask questions and discuss these issues. Notably absent from this year’s issue briefs will be repeal of the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP), as they HAVE BOTH BEEN FULLY REPEALED!

To review the draft 2025 FMA Issue Briefs Executive Summary, click here.

FMA's 87th 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 now 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.