Experts Warn of Consequences as House GOP Pushes for Federal Pay and Benefits Reduction
House Republicans are proposing steep cuts to federal employee compensation, including ending annual pay boosts and increasing health insurance premiums, in an effort to reduce deficits. However, experts argue that the savings from these cuts may be limited and the costs could be high. The proposal also aims to strip down the General Schedule system and merge federal retirement savings into the Thrift Savings Plan, potentially saving $235 billion over 10 years. Critics argue that such cuts could negatively impact morale, recruitment, and retention of federal employees, and may not significantly address the larger deficit issue. Some experts suggest a more targeted approach to downsizing certain departments and reining in entitlements to achieve sustainable cost reductions.