House Panel Advances Federal Buyout Bill as New Workforce Caucus Launches

Legislation to update buyout amounts offered to federal employees advanced in the House. In some cases, this would result in more money being offered to federal employees to exit their position.

The House Oversight and Government Reform Committee unanimously approved The Federal Workforce Early Separation Incentives Act (H.R. 7256). 

The legislation would remove the current $25,000 hard cap on Voluntary Separation Incentive Payments (VSIPs) that are offered to federal workers to exit service. Instead, it would be replaced with a new model that could result in workers receiving as much as six months’ salary, subject to agency approval. The model is similar to the way federal agencies calculate severance pay for laid off workers. 

“By ending the 30-year old cap, and instead tying the retirement incentive to earned income, we will make the VSIP more fair and potentially appealing,” said lead sponsor Rep. Nick Langworthy (R-NY). “This legislation brings a common-sense update to a program that has been frozen in time, giving agencies a better option to reduce costs while treating federal employees fairly.”

The measure advanced by a 43-0 vote. It now heads to the House floor for consideration.

Federal Workforce Caucus 

Meanwhile, 25 members of Congress formed a new caucus to advocate for the federal workforce. 

The caucus was launched by Democrats from the DC area, including Senator Chris Van Hollen (D-MD), Rep. Steny Hoyer (D-MD), Rep. Kweisi Mfume (D-MD), and Rep. James Walkinshaw (D-VA). As of now, there’s one Republican in the 25-member caucus, Rep. Mike Lawler (R-NY). 

Members said the caucus will work to advance policies improving recruitment, retention, and workforce morale, and to encourage modernization and competitive pay across the civil service. It will also fight to restore collective bargaining. 

“This Caucus will be on the front lines defending merit-based public service,” said Rep. Walkinshaw (D-VA). 

In announcing the caucus, the lawmakers were joined by representatives from all the large federal worker unions as well as advocacy groups. 

“After a traumatic year for the civil service, including a 43-day government shutdown and unprecedented mass firings, this Caucus is very timely,” said American Federation of Government Employees (AFGE) Sr. National Secretary-Treasurer Eric Bunn.