The Federal Employee Briefing for May 9, 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. Fired FEMA Chief Threatened to Quit Weeks Ago
The acting head of the Federal Emergency Management Agency, Cameron Hamilton, was abruptly dismissed on May 8—just one day after he told House appropriators that abolishing FEMA would not serve the public. Homeland Security officials escorted him from headquarters, and DHS quickly installed David Richardson, an official with no disaster-response background, as the new acting administrator. The shake-up leaves FEMA leaderless three weeks before hurricane season and amid congressional review of its FY 2026 budget. Lawmakers and emergency-management groups warned the firing erodes confidence in the agency’s readiness. Politico
Legal Insight:
Sudden leadership changes at FEMA raise concerns under Presidential Policy Directive 40, which mandates continuity of operations for federal agencies during crises. Although state governors cannot independently invoke 42 U.S.C. § 5170, dysfunction at FEMA could influence major disaster declaration requests and highlight federal readiness gaps. If Cameron Hamilton’s congressional testimony is deemed a protected disclosure under the Whistleblower Protection Act, and he was a career appointee serving in an acting role, his removal could raise legal flags. The installation of a successor with no disaster-response credentials also underscores the importance of the statutory qualification requirements in 6 U.S.C. § 313, which aim to ensure FEMA remains led by experienced professionals—especially in advance of hurricane season. For FEMA staff, now is a good time to document any breakdowns in policy execution that may warrant future review by the Inspector General or GAO.
2. Workday Gets Contract From OPM With No Other Bids
Reuters revealed that the Office of Personnel Management awarded a sole-source, $342 million contract to Workday on May 2 to replace its cloud HR platforms, citing “unusual and compelling urgency” tied to Trump-era workforce restructuring mandates. The move comes after the Department of Government Efficiency (DOGE) cut OPM staff who maintained in-house systems and as 260,000 federal positions have been eliminated government-wide. Current and former employees questioned bypassing competition when rivals such as Dayforce expressed interest, noting OPM’s existing systems were already cloud-based. Workday says it is “honored” to modernize federal HR; critics call the process highly irregular. Reuters
Legal Insight:
FAR Part 6.3 permits sole-source contracts only with a written Justification and Approval, which must show that “unusual and compelling urgency” truly precludes competition. Competing vendors or unions with standing may file GAO bid protests within 10 days of learning the basis for the award—especially if comparable vendors like Dayforce were excluded. Since the Workday contract involves payroll and personnel systems, OPM must comply with FISMA and OMB Circular A-130, including privacy impact assessments and continuous monitoring—areas that typically draw heightened inspector general scrutiny during sole-source transitions. Employees should brace for potential payroll or benefits disruptions; documenting any errors may preserve claims under the Back Pay Act.
3. HSA Contribution Limits Will Rise in 2026—Here’s What Federal Employees Need to Know About HDHPs
GovExec reports that the IRS will allow individuals in High-Deductible Health Plans (HDHPs) to contribute up to $4,400 to Health Savings Accounts in 2026 (up $100), while self-plus-one and family caps rise to $8,750 (up $200). HDHPs paired with HSAs remain among the lowest-premium options in the FEHB, though enrollees shoulder higher deductibles—$1,650–$2,000 for self-only and $3,300–$4,000 for families. Preventive care is still free in-network, and plan-funded HSA deposits of $800–$2,400 help offset risk. The article walks through cost transparency challenges and strategies for maximizing the new limits. Government Executive
Legal Insight:
The increased HSA contribution limits for 2026 give federal employees enrolled in HDHPs a chance to build greater tax-advantaged reserves for future health costs. Because enrolling in Medicare Part A ends your eligibility to contribute to an HSA, employees nearing retirement should carefully evaluate whether maximizing HSA savings now outweighs the more predictable costs of traditional PPO plans. Under 5 U.S.C. § 8906, your agency’s premium contribution remains a fixed percentage, so choosing a lower-premium HDHP frees up more pre-tax dollars for your HSA. Just remember: HSA funds used for non-medical expenses before age 65 incur a 20% penalty—so keep receipts and consider pairing your HSA with a Limited Expense FSA for dental and vision to stretch your savings even further.
Mindful Moment of the Day:
Mindful Headline Buffer
Federal inboxes swell with alerts—budget cuts, court rulings, shifting directives. Before clicking the next urgent headline, take one breath to feel your feet on the floor and silently repeat: “Inform, don’t inflame.” This phrase positions the article as data rather than doom. Neuroscientists note that even a brief reframe keeps the amygdala from hijacking prefrontal reasoning, allowing you to read critically, not catastrophically, and to respond with the level-headed stewardship your stakeholders expect.
Legal Tip of the Day:
Pin Down Performance Criteria Early
The moment your annual plan is issued, consider asking in writing for concrete examples of “meets expectations” for each critical element—especially any rated “critical.” Vague standards let agencies launch surprise Performance Improvement Plans (PIPs) that run only 30–60 days yet form the scaffold for removals. Clarifying metrics at the outset preserves due-process arguments under 5 U.S.C. § 4303 and often deters management from weaponizing ambiguity, because they know their own emails can later be Exhibit A before the MSPB.
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In Case You Missed It:
Today on the blog we unpack:
OPM’s Workday Contract and What It Means for Your Federal HR Rights
Court Blocks Shutdown of Three Federal Agencies
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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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