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Today at a Glance

• Schedule Policy/Career In Court: Two nonprofit groups have amended their lawsuit to challenge the June 3 reclassification of about 8,000 career positions into at-will status, arguing the move violates the Civil Service Reform Act and denies affected employees due process.

• Uniform Allowance Nearly Doubled: OPM has finalized an increase in the maximum annual uniform allowance from $800 to $1,500 — the first increase since 2007 — taking effect July 13, 2026.

• TSP Rollovers Could Go Electronic: A newly introduced bill would require the Thrift Savings Plan to allow electronic transfers to IRAs and outside plans, replacing the current mailed paper-check process.

Top Stories:

1. Schedule Policy/Career Heads Back to Court — Amended Complaint Targets the Reclassification of 8,000 Career Jobs

Source: Federal News Network, June 25, 2026

TL;DR: Two nonprofit organizations — the Government Accountability Project and the National Active and Retired Federal Employees Association (NARFE) — have filed an amended complaint in their lawsuit challenging Schedule Policy/Career, the excepted-service category created to make many career positions at-will. NARFE announced the filing on June 25. The amended complaint focuses on the June 3, 2026 executive order that reclassified about 8,000 career positions — roughly 97% of them at the GS-15 level or above — into the new category, removing the affected employees' Chapter 75 adverse-action protections and their right to appeal a removal to the Merit Systems Protection Board (MSPB). The plaintiffs, represented by Protect Democracy and Selendy Gay PLLC, argue that Schedule Policy/Career violates the Civil Service Reform Act of 1978, denies affected employees due process, and intrudes on powers the Constitution assigns to Congress. The case (Government Accountability Project v. Office of Personnel Management, No. 1:25-cv-00347 (D.D.C.)) was first filed in February 2025 against the underlying order and rule; the new filing responds to the reclassifications that took effect this month. No court has ruled on the merits, and the lawsuit does not pause the reclassifications while it proceeds.

For federal employees, this means:

•  If your position was reclassified into Schedule Policy/Career, you are now treated as at-will: agencies generally need not use a Performance Improvement Plan (PIP) or the usual notice-and-reply steps before a removal, and MSPB adverse-action appeal rights generally do not apply to the new status.

• Whistleblower protections and prohibited-personnel-practice complaints to the Office of Special Counsel (OSC) still apply; reclassification does not erase your rights under 5 U.S.C. § 2302, though the path for raising them can change.

• The lawsuit does not stop the reclassifications, so preserve your SF-50s and any reclassification notice now, and calendar any agency-imposed response deadlines immediately rather than waiting on the litigation.

Legal Insight:

Covered federal employees ordinarily receive the adverse-action protections of 5 U.S.C. § 7513 — advance written notice, a chance to reply, and the right to appeal a removal to the MSPB. Positions placed in the excepted service as confidential, policy-determining, policy-making, or policy-advocating are excluded from that coverage under 5 U.S.C. § 7511(b), and that exclusion is the legal mechanism Schedule Policy/Career relies on; the plaintiffs argue the reclassification exceeds what the Civil Service Reform Act and the Administrative Procedure Act (5 U.S.C. § 553) permit. Because the suit does not halt the reclassifications while it is pending, an employee who is reclassified and then faces discipline or removal can lose appeal rights quickly — anyone in that position should consult a federal employment attorney about preserving MSPB, OSC, or EEO options before responding to an agency action.

2. OPM Finalizes the First Uniform Allowance Increase Since 2007 — Maximum Rises to $1,500

Source: FedWeek, June 26, 2026

TL;DR: The Office of Personnel Management (OPM) has finalized an increase in the maximum annual uniform allowance for federal employees who must wear uniforms on the job, raising it from $800 to $1,500. OPM confirmed the change in the Federal Register on June 26, 2026, following a direct final rule issued in April; the new maximum takes effect July 13, 2026. It is the first increase since 2007, when OPM raised the cap from $400 to $800. The same $1,500 ceiling also applies to the maximum cost an agency may incur when it furnishes uniforms directly rather than paying an allowance. OPM said the change responds to nearly two decades of rising costs — the Consumer Price Index for All Urban Consumers rose more than 57% from April 2007 to January 2026 — and that the largest affected group is law enforcement and public-safety employees. The rule also clarifies that uniform-allowance funds may not be spent on personal protective equipment (PPE), which agencies fund under separate authority. The $1,500 figure is a ceiling, not an entitlement; agencies set actual allowances up to that cap based on need.

For federal employees, this means:

• If you wear a required uniform — for example in law enforcement, firefighting, or another public-safety role — your agency may now provide up to $1,500 per year, but it is not required to pay the full amount; check your agency's written uniform policy.

• The higher cap takes effect July 13, 2026, so allowances paid or uniforms furnished on or after that date can reflect the new maximum.

• Uniform-allowance money cannot be used for PPE such as ballistic vests or footwear worn solely for safety; that gear is funded separately, so do not assume the higher allowance covers protective equipment.

Legal Insight:
OPM sets the governmentwide uniform allowance under 5 U.S.C. §§ 5901–5903 and its implementing regulations at 5 C.F.R. Part 591, Subpart A; the new rule raises the maximum at 5 C.F.R. § 591.103 to $1,500. By statute the allowance is meant to help defray — not necessarily fully cover — the cost of required uniforms, and uniform-allowance payments are not treated as wages for Social Security or federal tax-withholding purposes under 5 U.S.C. § 5901(c). Employees whose required uniform costs exceed their agency's allowance continue to bear the difference out of pocket.

3. A New Bill Would Let You Roll TSP Money Out Electronically Instead of Waiting on a Paper Check

Source: FedSmith.com, June 24, 2026

TL;DR: A new bill would let federal employees and retirees move money out of the Thrift Savings Plan (TSP) electronically instead of waiting on a mailed paper check. Rep. Mike Bost (R-Ill.) introduced the TSP Modernization Act (H.R. 9214) on June 9, 2026; as of FedSmith's June 24 report it had 22 cosponsors. The bill would require the TSP to allow electronic transfers of funds to qualified retirement plans — including Individual Retirement Accounts (IRAs) and most employer-sponsored plans — once a participant is otherwise entitled to make the transfer. It would not change withdrawal eligibility, contribution limits, or investment options; it addresses only how the money moves once a rollover is already permitted. The change would take effect one year after enactment, giving the Federal Retirement Thrift Investment Board (FRTIB) time to build the capability, and would require a status report to Congress. The bill is at the introduction stage and has not had a committee vote.

For federal employees, this means:

• If you are planning a rollover from the TSP to an IRA or an outside plan today, the current process can still require a mailed Treasury check — build in extra time and confirm your receiving institution's instructions.

• The bill would not change when or whether you can withdraw or roll over funds; it changes only the delivery method, so existing eligibility rules still govern.

• Track the bill before relying on it: it is newly introduced, has no committee vote yet, and any electronic-transfer requirement would not take effect until one year after it became law.

Legal Insight:
The TSP is governed by the Federal Employees' Retirement System Act provisions at 5 U.S.C. §§ 8431–8440, with withdrawals and transfers addressed at 5 U.S.C. § 8433 and the FRTIB's regulations at 5 C.F.R. Part 1650. H.R. 9214 would add an electronic-transfer requirement for rollovers to a "qualified retirement plan" as defined by reference to 26 U.S.C. § 4974(c). Until such a bill is enacted and implemented, the TSP's current rollover and withdrawal procedures remain in effect.

Legal Tip of the Day

Security Clearance Concerns: Don’t Guess

Security clearance issues can affect both current employment and future federal opportunities. Concerns about finances, foreign contacts, personal conduct, alcohol or drug issues, arrests, or candor can become more serious if handled poorly. If you receive questions, a notice, or a request for information, gather accurate records, make a timeline, and respond truthfully with context where appropriate. Do not guess on forms, omit information because it feels embarrassing, or submit a response before understanding what concern is being reviewed.

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