This week, the Federal Employees Health Benefits (FEHB) program announced a historic 13.5% premium hike for 2025—significantly outpacing proposed federal pay raises and eroding purchasing power for employees and retirees. Expanded IVF and anti-obesity drug coverage are driving up costs. In retirement news, the Thrift Savings Plan topped $1 trillion in assets, showcasing strong investment returns despite increased market dependence for future security. The newly enacted One Big Beautiful Bill Act brings selective tax relief for seniors and overtime earners, but also tightens SNAP eligibility, potentially harming low-income federal families. Executive action by President Trump banned collective bargaining at more agencies, igniting legal battles and intensifying fights over union rights. Meanwhile, the administration proposed just a 1% general pay raise (with a larger increase for law enforcement), further restricted telework, and introduced hiring reforms favoring ideological alignment. The federal workforce continued shrinking due to mass layoffs, with contrasting bills in Congress reflecting the divided outlook for pay, performance, and the core principles of federal employment.

• (00:00) - Introduction and Overview
• (00:44) -  Issues That Affect Current and Retired Federal Workers
• (03:33) - Thrift Savings Plan Milestone
• (05:20) - Legislative Updates and Tax Provisions
• (07:15) - Union Conflicts and Legal Battles
• (09:23) -  Issues That Affect Retired Federal Workers
• (11:04) - Social Security Overpayment Policy
• (12:04) -  Issues That Affect Current Federal Workers
• (12:08) - 2026 Pay Proposal and Workforce Reforms
• (16:51) - Pending Legislation and Future Outlook
• (18:04) - Conclusion and Wrap-Up

This episode of The FED Weekly covers crucial updates for federal employees and retirees for August 17-23, 2025. Host Lawrence outlines the impending 2026 pay freeze, significant increases in FEHB health insurance premiums, and the removal of gender-affirming care coverage from all federal health plans starting in 2026. The “One Big Beautiful Bill” Act introduces several new tax deductions, but won’t fully counterbalance the financial strain from pay and benefit changes. The episode also notes the controversial cancellation of the 2025 Federal Employee Viewpoint Survey, a dramatic reversal at the IRS from mass layoffs to emergency rehiring, and strengthened probationary periods for new hires. Lawrence discusses the government’s push toward AI-driven workforce solutions, the dismantling of existing innovation hubs, and pending legislation affecting pay, telework, and union rights. For retirees, the projected 2026 COLA is 2.7%, but FERS retirees will receive a lower “diet” adjustment. The episode concludes with advice for senior annuitants to ensure they’ve claimed Social Security benefits.