Congress has made some initial progress on setting spending limits for the next 10 years. But the full impact on federal agencies and employees is still not clear. The Senate passed its version of the House budget resolution last week.
They took the House-passed resolution and changed it. Now the House is expected to review it this week. The Senate’s changed version has different instructions for the committees than the House version.
The Senate lowered the spending cut amounts compared to the House’s $50 billion requirement for the Committee on Oversight and Government Reform. However, the overall direction is still unclear. This is especially true for spending on border security and immigration enforcement by the Senate Committee on Homeland Security and Governmental Affairs.
John Hatton is the staff vice president for policy and programs at NARFE. He said there hasn’t been major public opposition among Republicans about the $50 billion in cuts. But moderate Republicans have shared concerns about big cuts to Medicaid.
This shows broader worries about how much spending will be reduced.
Evaluating budget changes and impact
Hatton said they often advise their members not to base their decisions only on what Congress might do.
This is because there are no detailed policies yet. While the threat to benefits is real, specific ideas like changes to FEHB or higher contributions to FERS are not clear yet. Employees should think about their own situations.
This includes possible layoffs, voluntary retirement offers, or severance packages. Hatton said it’s important to make informed decisions based on current rules. NARFE aims to help people through webinars and guidance as new actions and plans become clearer.
Recent layoffs, like the 10,000 at HHS, show the ongoing uncertainty and major changes in the federal workforce. Looking ahead, Hatton said it’s hard to predict what will happen with the budget in 2026. Eventually, the administration will need to submit its budget request to Congress.
This is usually due in February, but delays are common in the first year of a new administration. The situation is still changing as lawmakers balance budget limits and policy priorities. Federal employees are advised to stay informed and get guidance as they deal with this uncertain time.
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