“Big, Beautiful Bill” Moves to Senate with Updated Fed Cuts as Republicans Already Voice Concerns
Senate Republicans are hoping to pass President Trump’s “big, beautiful bill” by July 4, after the House passed it by one vote, 215-214-1 ahead of the Memorial Day weekend.
However, getting the legislation that enacts much of President Trump’s agenda through the Senate will not be easy, as Senate Majority John Thune (R-SD) can lose no more than three Republican votes, and already some Republicans are voicing concerns.
On one side, Senator Rand Paul (R-KY) vowed to oppose the bill unless the provision raising the debt ceiling is removed, while on the other, moderates like Senators Susan Collins (R-ME) and Lisa Murkowski (R-AK) are worried about cuts to Medicaid.
Others are concerned about the House provision that raises the state and local tax deduction (SALT), but recognize the move was critical to getting the bill through the House.
“There’s not a single one of us who gives a crap about SALT, other than it’s too generous,” said Senator Kevin Cramer (R-ND). “But we also are pragmatic and want to pass the bill.”
House Speaker Mike Johnson (R-LA) has urged the Senate to change as little as possible, since the bill will ultimately have to pass the House again.
Federal Pay, Benefit, Pension Changes
The final version included some changes to federal benefit cuts as federal employees were spared over $30 billion from an original $50 billion cut target.
Scrapped entirely was the change from the high-3 average to a high-5 average annuity calculation. That provision would have lowered retirement payments for many federal employees by calculating annuities based on the average of an employee’s highest five consecutive years of salary, rather than the current calculation based on highest three consecutive years of earnings.
Also eliminated was a provision to institute a mandatory retirement contribution of 4.4 percent for all federal employees.
However, other federal benefits changes are included in the House bill, but with changes:
The elimination of the Federal Employees Retirement System (FERS) annuity supplements for those who have not yet reached the age of 62 to collect Social Security, was delayed until 2028.
There were additional exceptions created to receive the FERS supplements, including for those who accrue 20 years of service by age 50, or reach 25 years of service at any age. The exception for feds who retire at age 57 due to mandatory early retirement was included in the earlier text.
Federal employees subject to mandatory early retirement are also exempt from the provision requiring employees to choose between “at-will” employment status or accepting a five percent increase to their FERS contribution rate.
Federal employee groups like the American Federation of Government Employees (AFGE) and Federal Law Enforcement Officers Association (FLEOA) touted progress on changes to the House bill and promised to fight the cuts in the Senate.
“The victory on retaining the “high-3” is just one of several that FLEOA has secured for our members since the reconciliation process started earlier this year. In every iteration of the House bill, we have successfully advocated for changes to protect our members. This includes eliminating language: (1) requiring higher pension contributions for all 6(c) and non-6(c) law enforcement officers; and (2) eliminating the retirement annuity supplement for all 6(c) LEOs to preserve the option of voluntary retirement,” wrote FLEOA President Mat Silverman in an update to members this week.
“As we did with the House, AFGE will push the Senate to protect the civil service and drop the remaining FERS provisions in whatever reconciliation bill it passes,” said AFGE.