May 28, 2025

Passage of H.R. 1

The House narrowly passed the Republican-led One Big Beautiful Bill Act (H.R. 1) by a vote of 215–214–1. Passage of H.R. 1 marks a major step forward in the budget reconciliation process, which allows the Republican-led Congress to fast-track sweeping budget cuts to reduce federal programs and spending.

As it relates to letter carriers, the initial legislation contained harmful provisions, including a 4.4 percent across-the-board increase for all employees’ contributions to the Federal Employee Retirement Systems (FERS) and recalculating retirees’ annuities based on their high-five salary average (instead of high-three). Following aggressive lobbying efforts by NALC and the federal employee community, lawmakers removed these two provisions.

However, a key threat to postal employees did pass in the House: elimination of the FERS special annuity supplement, a crucial benefit for FERS-covered employees who retire before becoming eligible for Social Security at age 62.

We need all our members to take action on this legislation as it moves into the Senate.

The following link takes you to our website post we have just released on this today.

https://www.nalc.org/news/nalc-updates/house-passes-reconciliation-package-nalc-activism-defeats-two-of-three-attacks-aimed-at-letter-carrier-retirement-benefits