Congressional negotiators have released a fiscal year 2026 appropriations bill that focuses on increasing transparency around recent federal workforce reductions without stopping further cuts. The legislation requires the Office of Personnel Management (OPM) to publicly report detailed payroll and staffing data within 60 days, including workforce levels on key dates, January 19, 2025 (Inauguration Day), September 30, 2025 (end of FY 2025), and the enactment date of the bill. It also requests data on employee participation in deferred resignation programs, currently reported as roughly 150,000 civil servants.
These disclosures build on existing OPM data showing the federal workforce has fallen to just under 2.1 million employees, the lowest level in more than a decade, following a net loss of approximately 220,000 positions resulting from over 320,000 departures partially offset by more than 100,000 hires.
While the bill strengthens oversight, it allows agencies to continue downsizing. A temporary moratorium on reductions-in-force is set to expire on January 30, and the legislation does not extend it, potentially opening the door to renewed layoffs. Agencies must notify Congress in advance of large personnel actions, but funding levels for several agencies, including the IRS and financial regulators, remain flat or slightly reduced, reinforcing a climate of fiscal restraint.
The final package preserves several longstanding policy provisions, adds reporting requirements related to the Postal Service Health Benefits program, and directs OPM to evaluate extending identity theft protections for federal employees. However, negotiators dropped several controversial House proposals, including limits on TSP ESG investments and restrictions on gender-affirming care coverage under FEHB and PSHB.
Overall, the bill reflects a compromise aimed at avoiding another shutdown while prioritizing accountability amid continued efforts to reshape and reduce the federal workforce.
