Sponsor
Claudia Tenney
Representative · R-NY
Representative · R-NY
The bill reduces near-term federal payroll costs and slows headcount growth to ease budget pressure, but does so by freezing pay and forcing staffing cuts that diminish government capacity and risk leaving critical non-exempt roles unfilled.
Taxpayers may face lower near-term federal payroll costs because the bill limits hiring for one year and requires 2% and 5% staffing reductions over two and three years, slowing federal headcount growth and reducing budget pressure.
Federal employees cannot receive pay increases for one year, effectively freezing wages and reducing real income if inflation persists.
Mandatory 2% and 5% staffing cuts will likely cause job losses, increased workloads, and reduced or delayed public services and programs (including benefits administration and regulatory functions), harming taxpayers and government capacity.
Narrow hiring exemptions (limited to law enforcement, public safety, or national security) risk leaving other critical roles—such as health, benefits administration, and disaster response—unfilled during the freeze, potentially harming public health and safety.
Based on analysis of 2 sections of legislative text.
Imposes a 1-year federal hiring and pay freeze with limited exceptions and requires agencies to cut staff to 2% below baseline in 2 years and 5% in 3 years.
Introduced January 3, 2025 by Claudia Tenney · Last progress January 3, 2025
Imposes a nationwide 1-year freeze on hiring and increases in basic pay for federal employees, with narrow exceptions for appointments needed for law enforcement, public safety, or national security. It also requires agencies to cut their workforce to 2% below their employee count on the enactment date within 2 years and to 5% below that baseline within 3 years, overriding other laws or regulations as written.