Protecting Taxpayers’ Wallets Act of 2025
The Protecting Taxpayers’ Wallets Act of 2025 would create a new requirement in federal labor law for agencies to charge labor organizations (the exclusive representatives of federal employees) for the use of federal resources and the time their labor representatives spend on non-agency business. The bill defines how these charges are calculated, when they’re billed, and how they must be paid into the Treasury. It also sets up escalating enforcement actions that could ultimately terminate a labor organization’s status as the exclusive representative if fees remain unpaid. Additionally, the bill mandates routine oversight (biennial Inspector General reviews) to assess compliance. In short, the bill would shift the cost of union-related use of federal resources and union time from taxpayers to the labor organizations themselves, with penalties designed to progressively curtail union activity if payments are not made.
Key Points
- 1New fee regime (Sec. 7136): Agencies must bill each recognized labor organization a quarterly fee for the use of federal resources and union time spent on non-agency business. The fee equals the value of union time plus the value of agency resources provided for union use.
- 2Definitions and scope: Key terms include “agency resources provided for union use,” “union time,” “hourly rate of pay,” and “labor representative.” The definition of “labor organization” covers exclusive representatives under federal labor law and certain TSA-related arrangements.
- 3How fees are calculated and paid: Values are determined by the agency (for union time, using each labor representative’s hourly rate; for resources, using General Services Administration rates or market rates when GSA rates don’t apply). Payments are due within 60 days of notice, and the payment goes to the agency head to be transferred to the Treasury’s general fund. Notices must be sent within 30 days after each calendar quarter.
- 4Enforcement and penalties: If fees aren’t paid, penalties accrue at the interest rate, and within 90 days the agency can deny further union time; within 180 days it can terminate allotments for the labor organization and bar related activities; by 365 days the agency and labor organization are notified that 365 days have elapsed; by 380 days the authority would terminate the labor organization’s certification as the exclusive representative. A terminated labor organization cannot be re-certified unless all fees (including any increases) are paid.
- 5Compliance and oversight: Agencies must track union time using their time-and-attendance systems. Failure to record union time can be treated as a leave violation with limited avenues for challenge. The Inspector General must evaluate compliance every two years and report findings to Congress.