The administration is expected to publish its recommended budget around mid-March. Contained in the publication, we can anticipate to find what the President wishes the following year’s annual pay raise for Feds should be. While Democrats in Congress have already pushed for an 8.7% raise in the FAIR Act, the Biden Administration has previously arrived at its suggestion by following the formula laid out in laws surrounding salaries for the federal workforce – which would mean a 5.2% raise for 2024. While in the first two years of Biden’s presidency, there was no countermeasure proposed in budgetary talks, leaving the White House’s figure as the default, the GOP-led House might change things and push for an even lower raise this time around.
Outside of the debt ceiling debate, Republican representatives have also indicated that they will push for the following changes to federal employee benefits:
Regarding the debt ceiling, Republicans are using their small majority in the House to try and push for other matters regarding government spending. To compromise and raise the debt limit, the GOP representatives want something in return and have thus expressed interest in items such as installing work requirements for food stamps (SNAP) and ending legal assistance for migrants. Additionally, the following measures would impact federal workers directly:
While the House speaker has made it clear that cuts to Social Security and Medicare are not on the table, Senators such as Republican Rick Scott of Florida have explicitly expressed interest in such cuts.
—-
Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
With both normal budgetary debates and the debt ceiling crisis on the horizon, here’s how federal employee benefits and agency spending could be affected.
The White House Budget is release annually and acts as a starting point for Congressional debates over the Government’s budget. Think of the budget recommendations as a wish list for the current administration. Since the House of Representatives has a small GOP majority, this may leave more room for debate than in 2021 and 2022. In addition to the usual fiscal decisions hammered out by Congress, there’s also the matter of the debt ceiling, which will need to be raised by the summer before the country goes into default on its debt.
Here’s a look at how federal employee benefits and agency spending will act as bargaining chips in both of these contentious matters.
The administration is expected to publish its recommended budget around mid-March. Contained in the publication, we can anticipate to find what the President wishes the following year’s annual pay raise for Feds should be. While Democrats in Congress have already pushed for an 8.7% raise in the FAIR Act, the Biden Administration has previously arrived at its suggestion by following the formula laid out in laws surrounding salaries for the federal workforce – which would mean a 5.2% raise for 2024. While in the first two years of Biden’s presidency, there was no countermeasure proposed in budgetary talks, leaving the White House’s figure as the default, the GOP-led House might change things and push for an even lower raise this time around.
Outside of the debt ceiling debate, Republican representatives have also indicated that they will push for the following changes to federal employee benefits:
Regarding the debt ceiling, Republicans are using their small majority in the House to try and push for other matters regarding government spending. To compromise and raise the debt limit, the GOP representatives want something in return and have thus expressed interest in items such as installing work requirements for food stamps (SNAP) and ending legal assistance for migrants. Additionally, the following measures would impact federal workers directly:
While the House speaker has made it clear that cuts to Social Security and Medicare are not on the table, Senators such as Republican Rick Scott of Florida have explicitly expressed interest in such cuts.
—-
Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
With both normal budgetary debates and the debt ceiling crisis on the horizon, here’s how federal employee benefits and agency spending could be affected.
The White House Budget is release annually and acts as a starting point for Congressional debates over the Government’s budget. Think of the budget recommendations as a wish list for the current administration. Since the House of Representatives has a small GOP majority, this may leave more room for debate than in 2021 and 2022. In addition to the usual fiscal decisions hammered out by Congress, there’s also the matter of the debt ceiling, which will need to be raised by the summer before the country goes into default on its debt.
Here’s a look at how federal employee benefits and agency spending will act as bargaining chips in both of these contentious matters.
The administration is expected to publish its recommended budget around mid-March. Contained in the publication, we can anticipate to find what the President wishes the following year’s annual pay raise for Feds should be. While Democrats in Congress have already pushed for an 8.7% raise in the FAIR Act, the Biden Administration has previously arrived at its suggestion by following the formula laid out in laws surrounding salaries for the federal workforce – which would mean a 5.2% raise for 2024. While in the first two years of Biden’s presidency, there was no countermeasure proposed in budgetary talks, leaving the White House’s figure as the default, the GOP-led House might change things and push for an even lower raise this time around.
Outside of the debt ceiling debate, Republican representatives have also indicated that they will push for the following changes to federal employee benefits:
Regarding the debt ceiling, Republicans are using their small majority in the House to try and push for other matters regarding government spending. To compromise and raise the debt limit, the GOP representatives want something in return and have thus expressed interest in items such as installing work requirements for food stamps (SNAP) and ending legal assistance for migrants. Additionally, the following measures would impact federal workers directly:
While the House speaker has made it clear that cuts to Social Security and Medicare are not on the table, Senators such as Republican Rick Scott of Florida have explicitly expressed interest in such cuts.
—-
Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
The FedLife Podcast is your in-depth, biweekly deep dive into the world of federal benefits and retirement planning. Hosted by federal benefits expert Ed Zurndorfer and Dan Sipe of Serving Those Who Serve, each 30-minute episode unpacks the complexities of FERS and CSRS retirement, FEHB and Medicare, survivor benefits, tax planning, and more. Designed for federal employees and retirees who want more than just the basics, FedLife goes beyond the headlines to explore the rules, nuances, and strategies that can make a meaningful difference in your retirement. Remember: it’s your Fed life, make it a great one.
The Fed15 Podcast is your weekly 15(ish)-minute briefing on federal benefits and financial planning, built specifically for federal employees and retirees. Hosted by Dan Sipe and Katelyn Murray of Serving Those Who Serve, each episode delivers clear, actionable guidance on topics like FERS and CSRS retirement, TSP strategies, FEHB, survivor benefits, tax planning, and more! Whether you’re five years from retirement or already there, The Fed15 helps you cut through the noise, avoid costly mistakes, and make confident decisions about your federal benefits.
