The Federal Freeze Act would impose a one-year hiring and salary freeze across federal agencies, with a defined baseline equal to each agency’s total employee headcount (including full-time equivalents) on the date the bill becomes law. In general, agency heads could not hire beyond that baseline, and the annual pay for current employees could not be increased during the freeze. However, there are limited exceptions: an agency head could appoint someone beyond the baseline if the appointment serves law enforcement, public safety, or national security, or if the person is essential to respond to a Stafford Act emergency. After the one-year period, the bill directs agencies to implement reductions, aiming for 2% fewer employees than the baseline within two years and 5% fewer within three years, with certain employees—those the agency head determines serve law enforcement, public safety, national security, or emergency response roles—not counted for purposes of these reduction calculations.
Key Points
- 1One-year freeze on hiring beyond baseline and on pay increases; baseline is the agency’s headcount on enactment date.
- 2Exception to hiring limit allows appointments beyond baseline if they serve law enforcement, public safety, national security, or Stafford Act emergency response needs.
- 3During the freeze, basic pay cannot be increased from its current level as of enactment.
- 4Over the next two to three years, agencies must reduce total employment to 2% below baseline (by year two) and 5% below baseline (by year three), with reductions calculated excluding certain law enforcement/public safety/national security or emergency responders.
- 5Clear definitions: “agency,” “baseline number,” and “employee” are provided to standardize counting and enforcement.