News & information
This morning, the House narrowly passed the Republican-led One Big Beautiful Bill Act (H.R. 1) by a vote of 215–214–1. Passage of H.R. 1 marks a major step forward in the budget reconciliation process, which allows the Republican-led Congress to fast-track sweeping budget cuts to reduce federal programs and spending.
As it relates to letter carriers, the initial legislation contained harmful provisions, including a 4.4 percent across-the-board increase for all employees’ contributions to the Federal Employee Retirement Systems (FERS) and recalculating retirees’ annuities based on their high-five salary average (instead of high-three). Following aggressive lobbying efforts by NALC and the federal employee community, lawmakers removed these two provisions.
Despite our best efforts, a key threat to postal employees did pass in the House: elimination of the FERS special annuity supplement, a crucial benefit for FERS-covered employees who retire before becoming eligible for Social Security at age 62.
Other anti-federal employee provisions were advanced, including forcing new federal hires to choose between at-will employment or paying an increased FERS contribution of 9.4 percent and imposing a fee for Merit Systems Protection Board Claims and Appeals. While these provisions do not impact letter carriers, they are clear attacks on job security and union protections for hundreds of thousands of federal employees.
“Passage of this bill and any change to letter carrier retirement benefits is a direct attack on public servants who serve every community,” NALC President Brian L. Renfroe said. “NALC strongly condemns the 215 lawmakers that voted for legislation that included reductions to retirement benefits for letter carriers.
“As the bill heads to the Senate, we urge every senator to oppose any letter carrier retirement benefits cuts. Letter carriers are employed by an off-budget agency that isn’t funded by taxpayer dollars. We earn our retirement benefits through hard work and contribute to them every pay period. We are fighting like hell for what we deserve and were promised.”
Next steps
H.R. 1 now heads to the Senate, where they have their ideas for changes to the House-passed bill. The Senate has a tight timeline with the goal of getting the package to President Trump’s desk by the July 4 recess.
The Senate, which will only require a simple majority to pass reconciliation (51 votes instead of the usual 60), can remove the elimination of the FERS special annuity supplement from its version of the reconciliation package. With 53 Republicans, 45 Democrats and two independents who caucus with the Democrats, there is little room for Republican objection. Senate Homeland Security and Government Affairs Chairman Rand Paul (R-KY) has already indicated his opposition, tightening an already very thin margin.
Beyond federal workforce impacts, the bill contains numerous provisions that could derail action in the Senate, including cuts to Medicaid, low-income food and nutrition programs, and clean energy programs, to name a few. H.R. 1 also expands tax cuts for corporations and the wealthiest Americans while increasing funding for national defense, border security and deportation. The bill would increase the debt limit by $4 trillion.
Take action
The Senate can remove the elimination of the FERS special annuity supplement from its version of the reconciliation package.
Click here to ask them to oppose any cuts to letter carrier retirement benefits.