President Trump and Senate Republicans were dealt a major blow in their effort to gut the civil service with the Senate parliamentarian dropping anti-civil service provisions from the Senate reconciliation bill due to procedural violations.
In retaliation against AFGE and other unions for successfully standing up for federal workers in courts, the Trump administration and Senate GOP earlier this month released its version of Trump’s House-passed ‘Big Beautiful Bill’ with several provisions seeking policy changes relating to federal employees and their workplace rights. They collectively represented an existential threat to the future of federal unions and the civil service.
AFGE’s proactive and unceasing efforts to educate members of Congress about federal employee benefits and the civil service have paid off. We successfully convinced our friends in the Senate that these provisions violated the so-called Byrd Rule that prohibits non-budgetary provisions and policy changes in a reconciliation bill, a streamlined process that makes legislation easier to pass in the Senate.
Our Senate friends – Sen. Chris Van Hollen (D-Md.), Sen. Angela Alsobrooks (D-Md.), Sen. Gary Peters (D-Mich.), Sen. Tim Kaine (D-Va.), and Sen. Richard Blumenthal (D-Conn.), to name the most prominent – in turn were able to convince the Senate parliamentarian – the Senate umpire – that all but one of the anti-civil service provisions violated the Byrd Rule.
Here is what has been dropped from the reconciliation bill. Had these provisions stayed in the bill, the future of federal unions would have been bleak:
Section 90101 would amend Title 5 to allow new federal hires to elect “at-will” employment status (waiving standard civil service tenure protections) in exchange for reduced employee pension contributions under the Federal Employees Retirement System (FERS). Specifically, new hires who opt out of at-will status must pay an extra 10% of pay into FERS, whereas those who accept at-will employment pay an extra 5% into FERS. This provision would destroy the civil service over time.
This section would impose crushing fees and penalties on unions for the use of official time, such as using office space, equipment, and time to conduct representational work that federal law allows. Had this provision stayed in the bill, it would have significantly hobbled the right and duty of federal labor organizations, provided in Title 5, to effectively represent their members and collaborate with agency management by making it cost prohibitive for unions to exercise functions authorized under Title 5.
Section 90107 revives a version of executive reorganization authority. It appropriates $100 million to OMB (available until FY2034) for “preparing, submitting, and executing” reorganization plans. Had this section stayed in the bill, OMB would have been able to develop a master plan to shut down federal agencies and reduce the federal workforce.
Unfortunately, the Senate parliamentarian has ruled that the following provision does comply with the Byrd Rule.
Section 90104 – Deductions from Pay of Federal Employees (Union Dues Withholding Fee)
Section 90104 targets federal employee payroll deductions that go to certain outside organizations. It provides that if a tax-exempt organization such as charitable organizations, civic leagues, and labor unions receives dues or contributions via a payroll deduction allotment from a federal employee, the organization must pay a fee equal to 10% of the amount deducted, to the employing agency. The agency must deposit those fee payments into the Treasury’s general fund. In effect, this is a 10% charge on union dues or other charitable contributions deducted from pay, with the revenue accruing to the government.
AFGE will fight Section 90104 as the Senate moves to take up the reconciliation bill later this week. Because the section would target charities that benefit from the Combined Federal Campaign, including major players like Catholic Charities and the United Way, AFGE is reaching out to the nonprofit world to work together to fight this provision.
The good news is that Section 90104 targets only deductions made via automatic payroll deductions. As AFGE moves to E-dues, this provision, if it becomes law, will not have the negative impact it would otherwise have if we relied on payroll deductions.
Sign up for AFGE E-Dues today!
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