This report provides an update on issues affecting federal managers. As always, I encourage you to visit www.fedmanagers.org on a regular basis for more information on these and other matters.

Also, be sure to look for the monthly FMA Grassroots Update where we offer links to action letters and FMA-PAC matters we do not address in the Washington Report. The grassroots newsletter is sent exclusively to non-governmental email addresses to avoid any Hatch Act violations. If you are not receiving it, contact the national office to provide your non-governmental email address.

Please feel free to provide feedback any time by emailing Greg Stanford at gstanford@fedmanagers.org, or by calling the National Office at (703) 683-8700. Thank you for your membership in FMA. It’s an honor to represent your interests before Congress and the administration.

The continuing resolution funding the federal government expired on September 30, 2025, causing a government shutdown. Earlier this week the shutdown officially became the longest shutdown in U.S. history, passing the 35-day shutdown from December 2018 into January 2019.

On October 29, the Congressional Budget Office stated most of the decline to the country’s gross domestic product (GDP) will ultimately be recovered, but also estimates that up to $14 billion is lost forever if the shutdown extends to November 26. “The effects of the shutdown on the economy are uncertain,” the CBO wrote. “Those effects depend on decisions made by the administration throughout the shutdown. In addition, how federal employees and contractors respond to the delay in compensation is uncertain.”

The open enrollment season for 2026 Federal Employees Health Benefits (FEHB) Program, including health benefits, dental and vision insurance, and flexible spending accounts, begins on Monday, November 10, and runs through December 8, 2025. Importantly, FEHB open enrollment will proceed as normal even if the current government shutdown extends further into the month.

The average enrollee share increase for 2026 will be 12.3 percent. This is down slightly from last year’s increase in the enrollee share (13.5 percent in 2025). The overall average FEHB premium increase will be 10.2 percent. The new health premiums go into effect in January 2026.

The Cost-of-Living-Adjustment (COLA) for social security benefits and Civil Service Retirement System (CSRS) retirement annuities in 2026 will be 2.8 percent. This will take effect in January.

The annual COLA is meant to keep federal retirees’ and Social Security recipients’ benefits on pace with rising inflation. The 2026 CSRS retiree COLA is based on the third quarter (July, August, September) average CPI-W index in 2025 over the 2024 third quarter average.

Today, Federal Managers Association (FMA) National President Craig Carter urged all Senators to support and pass the Shutdown Fairness Act (S. 3012), sponsored by Sen. Ron Johnson (R-WI). The bill, as amended, would immediately appropriate funds for federal agencies to pay all federal employees -- excepted and furloughed -- as well as military personnel during any lapse in government funding, both now and in the future.

To read the full letter, click here.

As always, every employee should refer to their own agency for communications and guidance related to the government shutdown.

That said, FMA has cobbled resources that may be useful for federal managers affected by these current events. Please visit FMA’s shutdown hub for useful information and resources, including links to the Office of Personnel Management, our friends at the Federal Employee Education & Assistance Fund, FedSupport.Org, the Partnership for Public Service, and much more. We will continue to post updates to this page, so please visit often. We hope this information will be helpful and please share it with your colleagues.

Discussions to finalize the Fiscal Year 2026 National Defense Authorization Act (NDAA) continue, with House Armed Services Committee leaders positive they will complete the work before Congress adjourns next month. House Armed Services Committee (HASC) Chairman Mike Rogers (R-AL) stated he is confident negotiators from his committee and the Senate Armed Services Committee (SASC) will finish reconciling their two bills and both chambers will pass a final version of the bill.

The House of Representatives advanced its version of the NDAA (H.R. 3838) on September 10 by a vote of 231-196. The Senate passed its version (S. 2296) on October 9 by a vote of 77-20. The two chambers need to resolve the differences between their two bills and approve a final conference report before it can be sent to President Trump to be signed into law. The annual NDAA was first passed in 1961, and Congress has successfully passed the measure every year since.

The Department of War (DOW) issued a memo on September 30, removing job protections from civilians and requiring managers to terminate employees performing unsuccessfully “with speed and conviction.” The memo, titled “Separation of Employees with Unacceptable Performance” also warns managers will be held “accountable for addressing poor employee performance.” The memo was issued by Anthony Tata, Under Secretary of War for Personnel and Readiness.

The memo is accompanied by four attachments, including criteria for unacceptable performance to substantiate a removal, referencing the 12 Douglas Factors, an example of notice of proposed removal, an example of decision to remove memo, and a deferred resignation agreement.

Federal employees will see a 1 percent pay raise in 2026, assuming Congress endorses President Trump’s alternative pay plan. On Friday, August 29, President Trump sent an alternative pay plan to Congress, calling for a 1 percent raise for the federal workforce in 2026.

FMA National President Craig Carter said, “A one percent raise is better than nothing, and given the lack of discussion about pay all year we had been bracing for a pay freeze. Regrettably, a one percent pay raise is nowhere near the rising inflation levels. And it would ensure feds would fall even further behind their private sector counterparts when it comes to compensation, when feds already make almost 25 percent less.”

The Office of Personnel Management (OPM) officially cancelled the 2025 Federal Employee Viewpoint Survey (FEVS) in August. The annual FEVS, mandated by law, is a snapshot poll survey gauging employee engagement, morale, and more in the federal workforce.

While the FEVS will return in 2026, the Partnership for Public Service is working to fill the gap this year by sponsoring the 2025 Public Service Viewpoint Survey. It will launch on November 10 and will remain open until December 19.