The Federal Employee Briefing for July 2, 2025
Brought to you by Southworth PC—Attorneys for Federal Employees
Our online community now tops 150,000 federal workers and supporters across TikTok, Instagram, YouTube, Facebook, and LinkedIn. Each briefing distills the day’s most consequential developments, adds clear-eyed legal analysis, and pairs it with mindfulness tools that keep you steady no matter how turbulent the news cycle becomes. If this newsletter helps you stay informed, please pass it on: https://fedlegalhelp.com/newsletter. Your advocacy broadens the protective circle for every federal employee.
Top Three News Stories:
1. Federal Judge Blocks HHS Downsizing and Mass Layoffs
U.S. District Judge Melissa DuBose issued a preliminary injunction on July 1 halting Health Secretary Robert F. Kennedy Jr.’s plan to cut more than 10,000 positions and consolidate 28 HHS agencies into 15. The court found the reorganization “arbitrary and capricious,” likely contrary to law, and an overreach of executive authority, ordering the administration to stop all further separations and to file a status report by July 11. The ruling protects employees at the Centers for Disease Control and Prevention, FDA’s Center for Tobacco Products, the Office of Head Start, and the Assistant Secretary for Planning and Evaluation, many of whom had already received termination notices. Federal News Network
Legal Insight:
The injunction signals that states are likely to prevail on Administrative Procedure Act claims and revives separation-of-powers limits that require Congress—not the White House—to restructure executive departments under 5 U.S.C. §§ 901-912. Agencies must now treat affected employees as continuing on the rolls; failure to restore pay and benefits could trigger back-pay liability under the Back Pay Act.. States’ successful showing of “irreparable harm” underscores that grant-dependent programs can create standing to challenge federal workforce cuts, a factor other litigants may use against future downsizing efforts.
2. Senate Passes H.R. 1 Without Pension or Union Roll-Backs
After an all-night vote-a-rama, the Senate approved the reconciliation package known as the “One Big Beautiful Bill” on July 1 in a 50-50 vote decided by Vice-President J.D. Vance. The final manager’s amendment scrubbed every provision that would have raised Federal Employees Retirement System (FERS) contributions, switched to a high-five pension formula, eliminated the FERS annuity supplement, imposed fees on Merit Systems Protection Board appeals, or limited official union time. The only workforce language that survived instructs OPM to audit ineligible dependents on the Federal Employees Health Benefits (FEHB) rolls. The measure now returns to the House, where leadership must choose between accepting the Senate text or reopening negotiations. Federal News Network
Legal Insight:
Because the bill moved under budget-reconciliation rules, hostile amendments can still resurface during a House-Senate conference, so agencies should keep contingency payroll models ready for any mid-year FERS rate changes. The FEHB audit mandate will require new data-sharing memoranda that satisfy the Privacy Act and HIPAA, and unions may demand bargaining over inspection procedures and employee counseling under 5 U.S.C. § 7106(b)(2)–(3). Parliamentarian enforcement of the Byrd Rule provides a cautionary precedent: loosely related workforce riders are vulnerable in future reconciliation bills. For employees eyeing retirement, the near-term threat to pension formulas has receded, but we recommend continued monitoring until the bill is signed.
3. OPM Publishes Workforce Snapshot and Promises Modernized FedScope Portal
The Office of Personnel Management released its March 2025 employment data on July 1, showing 2.289 million non-postal, non-military federal employees—a net drop of about 23,000 since last September—as hiring slowed after a government-wide freeze. In the same announcement OPM said it will unveil a redesigned FedScope this fall featuring interactive visuals and faster data refreshes, after criticism that the current site had removed race-and-ethnicity filters and lagged in updates. The agency framed the modernization as a step toward “disciplined and accountable” workforce management, while unions warned that greater transparency could also spotlight disproportionate cuts in certain missions and demographics. Federal News Network
Legal Insight:
A rebuilt FedScope—with richer demographic fields and near-real-time updates—will arm plaintiffs in disparate-impact and EEO cases, so agencies should audit their diversity and age profiles now. OPM must complete privacy-impact assessments and comply with the E-Government Act before launch, particularly if re-introducing sensitive demographic data. Negotiators should expect unions to cite the new metrics in bargaining over staffing levels, telework caps, and mission realignments, and counsel can leverage the data to show—or rebut—claims of targeted cuts.
Mindful Moment of the Day:
90-Second Reset
Before diving into your first email of the day, try a 90-second reset. Sit upright in your chair, let your shoulders soften, and take slow, intentional breaths. Focus on the cool air as it enters your nose, and the warmth as it exits. This short pause isn’t just about calm—it engages your parasympathetic nervous system, reducing cortisol and improving focus. It's a small act with big returns, preparing your mind for a more thoughtful, centered workday.
Legal Tip of the Day:
Understand the Merit System Principles — They're the Foundation of Your Career
Every federal employee should be familiar with the nine Merit System Principles found in 5 U.S.C. § 2301. These aren’t just lofty ideals—they’re enforceable standards that guide how agencies must treat their workforce. They include ideas like treating employees fairly, protecting them from retaliation, hiring based on merit, and maintaining high ethical standards. When you’re unsure whether what’s happening to you is wrong, start by asking: which of these principles might be getting violated? Knowing them helps you frame your concerns effectively when speaking with HR, the EEO office, your union, or a legal advisor.
Important Announcement: New RIF Appeal Resources Now Available
Before we dive into today's briefing, we want to quickly highlight new resources we've created specifically for federal employees facing Reduction-in-Force (RIF) actions. Given the challenging situation many federal workers now face, we've developed three tailored options to help you successfully appeal your RIF before the Merit Systems Protection Board (MSPB):
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DIY Online Course (Bronze Level): Step-by-step video modules, proven templates, and strategic guidance to help you confidently file your own MSPB appeal. $199.
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DIY Course + One-on-One Strategy Sessions (Silver Level): After enrolling in the DIY course, schedule private strategy sessions ($350/hour, up to three sessions) to personalize the course materials to your specific case.
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Full Attorney Representation (Gold Level): Professional legal advocacy for high-stakes RIF cases, beginning with a confidential consultation ($350) to outline your strongest arguments and next steps. Retainers start at $5,000.
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We designed these solutions to empower you—regardless of your budget or your case's complexity. Take action today to protect your federal career and future.
In Case You Missed It:
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Deep-Dive Courses for When the Stakes Are Personal
Navigating Reasonable Accommodations: Maximize Telework
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Need Personalized Advice?
A federal job moves fast—and so do the deadlines to fight discrimination, retaliation, potential discipline, or a removal. If you are interested in seeing if we can help you, one short, confidential call with Southworth PC might be able to help. The consultation is free, you speak with an attorney (not a screener), and our hybrid-retainer model caps your up-front costs until we win or settle.
We litigate before the EEOC, MSPB, and OSC nationwide, drawing on decades of inside knowledge of agency tactics. Protect your rights before the next deadline closes.
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Disclaimer:
This newsletter is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. Southworth PC provides these insights to help federal employees better understand their rights and navigate workplace developments, but every situation is unique. If you are facing a specific employment issue, you should consult a qualified attorney to discuss the facts of your case. While we aim to ensure the accuracy of legal interpretations at the time of publication, changes in law or policy may affect how the information applies to your circumstances. We’re proud to stand with federal employees—and we’re here when it matters most.
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