Attorneys for Federal Employees — Nationwide

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Today at a Glance

• DHS shutdown Day 74: Coast Guard Commandant Lunday told Congress on Tuesday that families have had electricity shut off, the service is “begging” utility providers to keep the lights on, and emergency pay runs out this week.

• GAO: Federal agencies made $186 billion in improper payments in FY2025 — up $24 billion from the prior year — even as the administration wages its “war on fraud.”

• SSA quietly launched its centralized workload and appointment scheduling systems in Nevada and Tennessee on April 25 after two prior postponements — employees warn the shift could increase overpayment errors.

Top Stories:

1. Coast Guard Families Losing Power as Emergency Pay Runs Out This Week

Source: Navy Times — April 28, 2026

TL;DR: Coast Guard Commandant Adm. Kevin Lunday testified Tuesday that families in Coast Guard housing have had electricity shut off in the past week. The service oversees 6,000 family housing units and has been unable to pay utility bills since the shutdown began February 14. More than 100 providers have threatened to cut off power and water. One civilian employee sold his car to pay rent in Ketchikan, Alaska before emergency funding arrived. Lunday warned that emergency pay funds could run out this week, and said there is no additional executive order the president can sign because there is simply no more money. Rep. DeLauro (D-Conn.) predicted employees will be paid in early May but will miss paychecks starting May 22 if no agreement is reached.

For federal employees, this means:

• Coast Guard civilian employees — roughly 10,000 — face a second round of missed paychecks if Congress does not act before funds run dry.
• Service members scheduled to move this summer are taking on personal debt because advanced pay for travel has been restricted.
• The merchant mariner credential backlog has grown to 18,000 — and the service’s ability to revoke credentials for misconduct has been frozen.

Legal Insight:
The Government Employee Fair Treatment Act (P.L. 116-1) guarantees back pay, but does not set a timeline. Under the Antideficiency Act (31 U.S.C. § 1341), once emergency funds are exhausted, the Coast Guard cannot obligate additional pay without appropriated funds. Civilian employees who continue to work without pay should document all hours worked and preserve pay records — these will be the basis for any back-pay claim. Employees experiencing financial hardship may also be eligible for hardship advances under agency authority, though Coast Guard leadership has signaled that even that mechanism is running dry.

2. GAO — Federal Agencies Made $186 Billion in Improper Payments in FY2025

Source: Federal News Network — April 27, 2026

TL;DR: GAO reported Monday that 15 federal agencies made an estimated $186 billion in improper payments across 64 programs in FY2025 — a $24 billion increase over FY2024. Approximately 82% were overpayments. Medicare and Medicaid accounted for a combined $94 billion. The $24 billion jump was largely driven by new programs reporting data for the first time — SBA’s Shuttered Venue Operators Grant program alone added $10.1 billion. Nineteen programs reported error rates of at least 10%, and six exceeded 25%. GAO said the federal government still cannot “reasonably assure” it takes appropriate action to reduce these payments. Since FY2003, cumulative improper payments total approximately $3 trillion.

For federal employees, this means:

• Employees at agencies with high error rates — CMS, Treasury, SBA — should expect increased pressure on internal controls, compliance reviews, and documentation requirements.
• The administration’s “war on fraud” rhetoric will likely translate into more IG investigations and tighter payment verification workflows for program staff.
• GAO made 10 recommendations to Congress in 2022; nine remain open, meaning systemic fixes have not been implemented and front-line federal employees are absorbing the accountability gap.

Legal Insight:
The Payment Integrity Information Act of 2019 (P.L. 116-117) requires agencies to identify programs susceptible to improper payments and report estimates annually. Agencies that fail to comply may face restrictions on discretionary spending under 31 U.S.C. § 3352. For federal employees who process payments, the stakes are personal — the IG Act (5 U.S.C. App.) gives inspectors general authority to investigate individual employees involved in payment processing. Employees who identify systemic errors or control weaknesses should document their concerns through official channels and consider filing a disclosure with the Office of Special Counsel under 5 U.S.C. § 1213 to establish whistleblower protection.

3. SSA Quietly Launches Centralized Workload System in Two States After Two Delays

Source: Federal News Network — April 28, 2026

TL;DR: SSA launched its National Appointment Scheduling Calendar and National Workload Management system in Nevada and Tennessee on April 25, after two prior postponements. The systems replace local field office calendars and workload distribution with a centralized national model — meaning a California applicant could be processed by a technician in Maine. The nationwide rollout planned for April 13 was “paused until further notice” before being scaled back to this two-state pilot. SSA Commissioner Bisignano told staff that “exactly zero field offices closed” last year. The union says SSA has begun hiring about 750 telephone service reps and 300 field office workers, but is calling on Congress for $3 billion in supplemental funding to hire up to 20,000 more frontline staff.

For federal employees, this means:

• SSA field office employees in Nevada and Tennessee are the test cases — they are now receiving claims from a national pool, not just local walk-ins and appointments.
• Employees have raised concerns that out-of-state processing increases the risk of overpayment errors because state-specific SSI supplement rules, income limits, and reporting requirements vary significantly.
• If the pilot produces acceptable results, expect a nationwide rollout later this year — affecting every SSA field office and processing center.

Legal Insight:
Under 42 U.S.C. § 405(a), SSA has broad authority to organize its operations, including how it distributes claims processing. But the shift from local to centralized workload management raises practical risks under the Program Integrity provisions of the Social Security Act — particularly overpayment errors that can trigger clawback actions against beneficiaries under 42 U.S.C. § 404(a). For SSA employees, processing unfamiliar state-specific claims increases the risk of individual error that could be attributed to the employee rather than the system design. Employees should document any training gaps or system limitations they encounter during the pilot — that documentation is critical if the agency later attempts to hold individuals accountable for systemic design flaws.

Legal Tip of the Day

When Deadlines Feel Unreasonable 

Short deadlines can create pressure and lead to rushed decisions. This often happens during disciplinary or investigative processes. Note the deadline and assess what is realistically possible. It may be appropriate to request additional time. Avoid submitting incomplete or unclear responses if possible. 

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