

There are several prospective pieces of legislation that, if passed, could have a significant effect on some or all civilian federal employees. While some are standalone bills that still need a vote from either the House, the Senate, or both, the other proposed laws are included in the pending budgetary measures that will need to be passed before December 16th to prevent a government shutdown, namely the 2023 National Defense Authorization Act (NDAA). And although it is likely that this omnibus spending bill will pass before the deadline, whether the finalized version still includes the provisions that directly impact the federal workforce is another matter entirely. As well, what is included in the NDAA has to be re-approved each year.
One of the provisions in the 2023 NDAA that could cause ripples across the future landscape of federal employees involves an “excepted service” category for “policy-related provisions.” Specifically, if enacted, this provision would prevent future Presidential offices from creating this category of position through an executive order. This is in response to a 2020 order signed by former President Trump that created a category known as “schedule F,” which would have paved the path for the government’s civil service to revert back to a “spoils” based system despite being merit-based since 1883. President Biden terminated this order in his first few weeks in the White House.
Another provision in the NDAA would give all Department of Defense (DoD) employees with a current salary of $45,000 or less an automatic 2.4% raise. There is Union support for this measure, but the White House has been opposed, arguing such a raise shouldn’t only be for those civilian workers at the DoD, but all full-time feds making less than $45,000 a year. A third provision in the NDAA also has support from union groups, mostly the American Federation for Government Employees (AFGE), and that would expand those who qualify as a LEO (Law Enforcement Officer), thus allowing more individuals to receive the special provisions for their retirement benefits.
There are a few other potential laws that will need to be voted on and approved before the next session of Congress begins in January, or else the bills will have to start their lawmaking journey back at the start of the process:
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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. **
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