On May 23, the House of Representatives passed a Republican-backed budget bill that could profoundly impact new federal employees by offering them a choice between stronger job security or higher salaries.
The American Prospect reported on a provision within the bill that allows incoming federal employees to opt for at-will employment. This would enable them to be dismissed at any time without cause. Those choosing not to work at-will would face a significant increase in their contributions to the Federal Employees Retirement System (FERS).
Presently, federal employees contribute 4.4% of their salary to FERS. However, under the new provision, this contribution would rise to 9.4% for those not choosing at-will employment, without any enhancement in benefits.
The proposed measure would effectively allow federal workers to bypass protections established by the Pendleton Civil Servant Reform Act of 1883, which ensured that employment decisions in the federal sector were made based on merit rather than political allegiance.
The National Active and Retired Federal Employees Association (NARFE), which advocates for federal employees, has expressed concern about potential negative outcomes. NARFE stated, “The merit-based civil service does not exist to protect federal employees; it exists to protect against cronyism and corruption in the civil service and fill the ranks of government with qualified individuals,” and urged Congress to uphold the merit-based system rather than undermine it. (NARFE)
Since his inauguration, President Donald Trump has made several attempts to dismiss thousands of federal employees, leading to legal actions by unions and workers which have halted some firings. The new bill, however, would remove such legal challenges for employees who choose at-will status, as they would not have the option to contest their terminations.
This legislative move aligns with Project 2025, a plan that advocates for reclassifying federal workers as at-will employees and dismissing those not aligned with presidential policies.
Referred to as the One Big Beautiful Bill Act, the legislation was passed solely with Republican support. It is currently under revision in the Senate and will be returned to the House for final approval. There is no current indication that the at-will employment provision will be excluded from the final version.
President Trump has indicated his desire to sign the bill into law by July 4.
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