The Republican party has recently introduced several bills aimed at changing how federal workers are paid. These proposed bills have sparked debate and controversy, with critics arguing they unfairly target federal employees. But Republican supporters say the bills are necessary to cut costs and increase government efficiency. This article will examine the key GOP-backed bills focused on federal worker pay, the arguments for and against them, and their potential impacts.
An Overview of Locality Pay for Federal Workers
Many of the recent Republican bills take aim at locality pay for federal workers Locality pay was instituted in the 1990s to help federal agencies compete with private sector employers in high-cost areas It functions by providing a pay boost to federal workers based on where they are located. Employees working in large, expensive metro areas like New York City and San Francisco can receive locality pay upwards of 30% of their base salary.
Locality pay is determined using data on prevailing non-federal wages in an area The goal is to keep federal pay on par with the private sector in a given location, Supporters argue this allows agencies to attract and retain talent where skilled workers command higher salaries, Critics counter that it has ballooned pay for some federal employees beyond what’s reasonable
The Federal Employee Return to Work Act
In October 2024 Senator Bill Cassidy (R-LA) introduced the Federal Employee Return to Work Act in the Senate. It swiftly gained a companion bill in the House sponsored by Representative Dan Newhouse (R-WA).
The bill would eliminate locality pay for any federal employee who teleworks for at least one day or 20% of their hours per week. Instead, teleworking employees would only receive the base pay rate for the “Rest of U.S.” locality area. For many feds, this would amount to a pay cut of up to 30%.
Proponents like Cassidy argue that if employees aren’t commuting to high cost-of-living areas, they shouldn’t receive the associated locality pay. But critics point out that locality pay is based on labor market conditions, not commuting patterns. They also note that most feds already live and work outside of major metro regions.
Senator Blackburn’s DOGE Acts
In December 2024, Senator Marsha Blackburn (R-TN) introduced a series of bills dubbed the DOGE Acts. DOGE stands for Department of Government Efficiency, a council President-elect Donald Trump plans to form. The bills align with reforms Trump and his advisors have proposed.
One DOGE Act would codify a policy similar to Trump’s controversial Schedule F executive order. It would create a class of federal employees with fewer civil service protections to make it easier to hire and fire them. Another DOGE Act would institute a federal hiring freeze for one year and cap new hires for an additional three years.
Additionally, the bills would freeze federal salary increases for a year. Critics argue this could hinder efforts to recruit tech and AI talent. The package also allows Cabinet secretaries to reshape their agencies as desired and makes it easier to appoint political staff.
Assessing the Motives and Potential Impacts
Clearly these GOP bills pursue fundamental changes to how the federal workforce is managed and compensated. Supporters say they are necessary to cut waste, empower federal leaders, and better align pay with work location and performance. But critics see a partisan attack on career civil servants and government expertise.
It’s unlikely the current Democrat-controlled Senate would pass any of these bills in their current form. But it highlights tensions around balancing costs, performance, and recruitment in managing the 2 million strong federal workforce. These debates seem poised to continue as both parties jostle to shape the civil service and government operations.
The bills also raise broader questions. Do they signal erosion of the apolitical, professional federal workforce? Would they make it harder for agencies to serve the public good? Proponents counter the reforms are prudent for stewarding taxpayer resources. But the controversies illustrate how federal pay issues intersect with debates about efficient governance.
Going forward, a balanced approach may involve selectively updating pay policies while respecting civil service protections. Locality pay could be reassessed for the remote work era, but not indiscriminately cut. New incentives for high-demand fields like tech could be explored. Political will to compromise is critical. With careful reforms, federal pay might be adapted to current realities while upholding core workforce values.
Recent Republican bills represent an ambitious GOP effort to reshape how federal workers are paid and managed. Supporters see overdue reforms that would control costs, boost performance, and update antiquated policies. But critics argue they undermine the professional civil service and could cripple recruitment. The truth likely lies somewhere in between. Certain pay policies may need rethinking, but a fair, apolitical workforce must be preserved. With pragmatism and prudence, federal pay could be adapted equitably to meet 21st century demands. But more extreme changes risk damaging government capacity and the public interest.
A closer eye on telework, locality pay
Separately, a pair of bills that Sen. Bill Cassidy (R-La.) introduced on July 30 would target federal workforce pay and benefits in multiple ways. One bill, the Federal Employee Return to Work Act, would completely cut locality pay for federal employees who telework at least one day per week.
Instead, according to the legislation, federal employees who telework would receive only their basic pay rates. If enacted, the bill could lead to 25% pay cuts for some employees, or even larger, depending on their locality pay area.
The bill would make exceptions for employees who telework due to a disability, as well as Foreign Service members, federal law enforcement officers and active-duty military members.
Cassidy’s other newly introduced bill, the Federal Employee Locality Accountability in Retirement Act, would exclude locality pay from retirement annuity calculations for new federal employees entering the Federal Employees Retirement System (FERS).
Cassidy said his legislation aims to end what he said is “telework abuse.”
“Federal employees get paid extra to work in higher-cost cities. But what if they don’t show up to work? Why should they get paid?” Cassidy said in a statement. “If you don’t show up for work, you don’t get paid at the same rate just for teleworking.”
The legislation follows multiple other attempts from Congress members to investigate or alter telework policies for the federal workforce.
Continued efforts to prohibit official time
Another Senate bill once again aims to change the use of official time in the federal workforce. Legislation that Sen. Mike Lee (R-Utah) introduced on July 31, called the No Union Time on the Taxpayer’s Dime Act, would prohibit federal employees from using on-the-clock hours for union-related activities.
The bill aims to address what Lee said is “misuse” of official time — and instead propel feds to work on union activities in their own time, at their own expense.
“Taxpayers should not be burdened with the cost of federal employees engaging in union activities,” Lee said in a July 31 statement.
Over at least the last decade, Republican lawmakers have made multiple attempts to scrap official time for feds, but so far, no bills related to official time have come close to passage.
A fiscal 2019 report on official time from OPM — the most recent publicly available — shows that official time hours decreased 28% between 2016 and 2019.
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FAQ
What is the bill for federal workers to return to work?
What is the federal pay cap increase for 2024?
What is the Federal employee pay Act?
What is the Back to Work Act of 2024?
Will federal employees get paid if they telework?
One bill, the Federal Employee Return to Work Act, would completely cut locality pay for federal employees who telework at least one day per week. Instead, according to the legislation, federal employees who telework would receive only their basic pay rates.
Will federal employee pay be cut?
By Ian Smith August 5, 2024 6:45 AM Federal Employee Pay News Leave a comment Recently introduced legislation would potentially cut pay for the majority of the federal workforce. The bills were introduced by Senator Bill Cassidy (R-LA) and target telework and locality pay.
Will federal employees be paid at Locality pay?
Federal employees covered under the bill would be paid at the Rest of U.S. locality pay area rate under the General Schedule. The Federal Employee Locality Accountability in Retirement Act (S. 4833) would exclude locality pay when calculating retirement payments for federal employees enrolled in the Federal Employees Retirement System (FERS).
Will the federal employee return to work act remove locality pay?
If enacted, the Federal Employee Return to Work Act would remove locality pay for any federal employee who teleworks at least one day a week. Federal teleworkers would instead only receive their base pay rates. The House bill, introduced this week, comes after Senator Bill Cassidy (R-La.) introduced the legislation in August.
Are House Republicans pushing for cuts to federal employees’ pay & benefits?
Several House Republicans are calling on their colleagues to push for cuts to federal employees’ pay and benefits, as lawmakers advance spending bills for fisca Several House Republicans are calling on their colleagues to push for cuts to federal employees’ pay and benefits, as lawmakers advance spending bills for fiscal 2024.
Are Republicans targeting federal employee pay & benefits?
Republicans are also targeting federal employee pay and benefits, claiming that federal employees are paid 17% more than their private-sector counterparts, when benefits are included.