Republicans consider collecting benefits from federal workers in exchange for labor rights
Story by Gabriela León, Explicame, 6/17/25
The Republican Party in the U.S. Senate is pushing a controversial reform that would require new federal employees to pay significantly higher amounts to retain traditional job protections. This initiative, part of the ambitious legislative package known as the “One Big Beautiful Bill” has sparked strong opposition from public sector unions, which have labeled it as retaliation and “extortion.”
What Does the Proposal Entail?
The latest proposal, promoted by the Senate Homeland Security and Governmental Affairs Committee and led by Senator Rand Paul, suggests that new federal workers contribute up to an additional 10% of their annual salary to their retirement plan if they wish to keep their job protections. Unlike current employees, who are covered by civil service rules that restrict unjustified dismissals, new hires would face a stark choice: pay more or accept “at-will” status, which would leave them vulnerable to being fired without cause.
Moreover, even those who voluntarily waive these protections would still have to contribute an additional 5% to the federal retirement system. For instance, a new federal employee earning $50,000 would have to contribute up to $5,000 more per year to enjoy the same guarantees as a veteran employee.
Rand Paul, R-Kentucky and chairman of the Senate Homeland Security and Governmental Affairs Committee, defended the proposal, noting that it represents an opportunity to reduce government spending and strengthen priorities such as border security. “The proposal also provides for more than $24 billion in eliminating wasteful spending and cost-cutting reforms in other areas of government,” Paul stated, stressing that the plan would allocate an additional $75 billion to strengthen the border, in line with the Trump administration’s goals.
A Drastic Change in Public Employment
The current federal employee retirement system, known as FERS, requires a 4.4% contribution from employees hired since 2014, with the rest covered by the government. Under the new Senate proposal, these contributions could rise to as much as 14.4% for new hires, significantly reducing their net income.
This change could erode the stability of public service, replacing a professional merit-based system with one more susceptible to political decisions. In fact, the Congressional Budget Office projects that only one-quarter of new employees would choose to pay for civil service protections, paving the way for a future administration to dismiss workers based on loyalty rather than performance.
Impact on Unions and Working Conditions
The legislation also proposes that federal unions be charged for using government facilities, equipment, and “official time”, the hours union officials spend on labor-related matters during the workday. Until now, this mechanism has been key to enabling unions to represent workers effectively, including non-members.
Failure to make these payments could lead to union decertification, further weakening their capacity in an increasingly precarious work environment.
A Broader Plan with Fiscal and Political Implications
The bill is not limited to public employment. It includes tax cuts favoring the wealthy, spending reductions targeting social programs, and a significant expansion of funding for the Trump administration’s immigration agenda. It also proposes granting the White House $100 million to execute unilateral cuts in federal agencies, bypassing congressional approval, giving the Executive more control over the federal bureaucracy.
Unions like the American Federation of Government Employees have denounced the measure as revenge for resisting Trump administration efforts to reshape the state apparatus. Union leaders warn that this reform not only undermines labor rights but also opens the door to a patronage system in public service, where political loyalty outweighs professional competence.
Although the legislation must still be reconciled between the Senate and the House of Representatives before becoming law, Republicans are moving forward decisively, aware of their slim majority.