In this episode of The FED Weekly, we recap key developments for federal employees and retirees from December 28, 2025, to January 3, 2026. Highlights include President Trump’s executive order granting extended holidays, which resulted in forfeited use-or-lose leave for some workers. Federal health benefit premiums have surged again—up 12.3% for most and 11.3% for postal workers—outpacing inflation. Congress faces a looming January 30 funding deadline after a record-breaking shutdown last fall. Retirees receive a finalized 2026 COLA: 2.8% for CSRS/Social Security and 2.0% for FERS. Errors on annuitant statements are addressed, with reassurance on actual payments. Recent Social Security bills aim to improve services but don’t address major benefit reforms. Notably, the repeal of the windfall elimination provision is now in effect for the first full year. The 2026 federal pay raise is low—just 1%—except for law enforcement, who receive about 3.8%. Major executive actions are ending most telework and prompting union backlash amid significant workforce cuts, especially in education and veterans’ affairs. Retirement savings rules also change, with higher contribution limits and mandatory Roth catch-ups for higher earners.

• (00:00) - Introduction and Overview
• (00:46) -  Issues That Affect Current and Retired Federal Workers
• (02:09) - Healthcare Costs and Premium Increases
• (03:20) - Legislative Updates and Government Operations
• (05:50) -  Issues That Affect Retired Federal Workers
• (07:46) - Social Security and Medicare Changes
• (10:07) -  Issues That Affect Current Federal Workers
• (14:37) - Retirement Savings and TSP Updates
• (15:50) - Conclusion and Wrap-Up

In this episode of The FED Weekly, we recap significant developments for federal employees and retirees for the week of December 21–27, 2025. Key highlights include President Trump’s executive order creating a five-day federal holiday weekend, a finalized 1.0% general pay raise for most federal employees (with federal law enforcement receiving an additional adjustment), and the last steps before the Postal Service Health Benefits program launch. Lawrence also covers the substantial 12.3% health premium increases, the upcoming 2026 COLA for federal retirees, and changes in Medicare Part B premiums—warning that many retirees will see their COLA consumed by these higher costs. The episode discusses TSA’s union decertification, the hiring surge for AI and cybersecurity experts, ongoing debates over telework policies, and legislative updates, including the Shutdown Fairness Act, the Equal COLA Act, and the FAIR Act.

• (00:00) - Introduction and Overview
• (00:44) -  Issues That Affect Current and Retired Federal Workers
• (01:28) - Pay and Benefits Updates for 2026
• (03:41) - Federal Budget and Shutdown Protections
• (04:45) - Healthcare Premiums and Costs
• (05:26) -  Issues That Affect Retired Federal Workers
• (08:16) - Legislative Updates for Retirees
• (10:23) - Union Rights and New Hiring Initiatives
• (12:42) - Telework Policies and Pay Adjustments
• (15:24) - Conclusion and Wrap-Up