
New Federal Worker Policy Spurs Debate Over Job Security and Benefits
The recent passage of a House Republican budget bill on May 23 has introduced a controversial choice for new federal employees: enhanced job security or increased salaries.
The provision, highlighted by The American Prospect, presents federal workers with the option to accept at-will employment, where they can be dismissed without cause. Those opting out of at-will status would be required to contribute a higher percentage of their salaries to the Federal Employees Retirement System (FERS).
Currently, federal workers contribute 4.4% of their wages to FERS. The proposed change would increase this contribution to 9.4% for non-at-will employees, maintaining their existing benefits.
This measure potentially undermines the Pendleton Civil Servant Reform Act of 1883, which established merit-based hiring and firing in the federal workforce to prevent political favoritism.
The National Active and Retired Federal Employees Association (NARFE) has expressed concern that the change could lead to misconduct. “The merit-based civil service does not exist to protect federal employees; it exists to protect against cronyism and corruption in the civil service and fill the ranks of government with qualified individuals,” NARFE stated. “Congress should protect merit-based civil service, not encourage employees to undermine it.”
President Donald Trump’s administration has faced legal challenges over attempts to dismiss thousands of federal employees since January. The new legislation could remove these legal obstacles by eliminating workers’ rights to contest terminations if they opt for at-will status.
The strategy aligns with Project 2025, which supports reclassifying federal employees as at-will to dismiss individuals not supporting the president’s agenda.
The legislation, termed the One Big Beautiful Bill Act, was passed solely with Republican support in the House. The Senate is now reviewing the bill, with no current plans to remove the at-will employment provision.
Trump aims to have the bill signed into law by July 4.
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