Reconciliation Legislation Passes

Today, Republicans in the House of Representatives narrowly passed President Trump’s tax-and-spending reconciliation bill after its passage in the Senate just two days ago. H.R. 1, the so-called “One Big Beautiful Bill Act,” gives $4.5 trillion in tax cuts to the ultra-wealthy, paid for by the working class. The bill slashes Medicaid, food assistance, and green-energy programs while it expands tax breaks and increases defense spending. But thanks to an all-hands on deck campaign by postal and federal union members, every direct attack on our retirement security was stripped from the bill before its final passage.

In the House and Senate, Democrats were united in voting against the bill. A few Republicans broke with their party to join Democrats in opposition, including Senators Thom Tillis (NC), Rand Paul (KY), and Susan Collins (ME). In the House, Representatives Brian Fitzpatrick (PA-01) and Thomas Massie (KY-04) found the bill to be not-so-beautiful and voted against it.

After Vice President JD Vance broke a tie in the Senate on Tuesday and the House of Representatives passed the bill today, it is now headed to the president's desk to be signed into law.

As you may recall, earlier versions of the bill in the House and Senate contained many disastrous provisions aimed at postal and federal workers, including:

1. Increasing the Federal Employees Retirement System (FERS) annuity contribution rate for all active employees to 4.4%, resulting in a direct pay cut for any active employee hired before 2014;
2. Replacing the High-3 FERS annuity calculation with a High-5 calculation, resulting in a reduction in annuity payments;
3. Eliminating the FERS Social Security supplement, which allows workers who have earned their retirement the ability to retire before their Social Security benefits begin;
4. Increasing the FERS annuity contribution rate for new hires;
5. Establishing a filing fee for the Merit Systems Protection Board Claims and Appeals;
6. Disposing of the Postal Service’s electric vehicle (EV) fleet and rescinding EV funding.

Thanks to the tireless activism of APWU members, and our coalition of postal and federal allies, the final version of the reconciliation bill contains NONE of these attacks! 

“This was a direct result of APWU member activism and shows our collective power,” said APWU Legislative and Political Director Judy Beard. “I want to thank every member who picked up the phone, sent an email, wrote a letter, or who personally met with their member of Congress. You have shown that even when the odds are stacked against us, we can win!”

While we successfully fought off the threats most affecting postal workers, we cannot lose sight of the fact that this bill is no doubt a crushing blow to millions of working families across the nation.

“Beauty is in the eyes of the beholder," declared APWU President Dimondstein. "What is dubbed as ‘The One Big Beautiful Bill Act’ is beautiful if you are part of the 1%, the fossil fuel industry, or multi-national defense contractors. For the rest of us, the working folks, this is as ugly as it gets.”

Dimondstein continued, “We are pleased that through concerted efforts, including from our members and the APWU, the major attacks on federal and postal retirement benefits were stripped out of the final package. But let’s be clear: Congress shamefully voted for a massive transfer of wealth from the working and low-income people to make permanent $4 trillion in tax breaks for corporate America, Wall Street and the fat cats. It should never be acceptable to reward those who need it the least by taking away Medicaid health care benefits, nutritional assistance and educational support from those who need it the most.”

Although many harmful provisions were successfully removed from this bill, we ask that you continue to stay vigilant. There are other dangerous bills currently moving through Congress and the APWU will keep you informed of our future fights.