In this episode of The FED Weekly, we cover key developments for federal employees and retirees from January 18–24, 2026. The Office of Personnel Management confirmed a modest 1.0% pay raise for federal workers, while locality pay rates remain frozen. The House passed major spending bills, including provisions to extend Medicare telehealth and reform pharmacy benefit managers. Retirees saw updates to IRS tax forms and new guidance on pension rollover rules, along with reminders on how retirement timing impacts cost-of-living adjustments. Federal law enforcement received a 3.8% special salary rate increase, and the Thrift Savings Plan now automates catch-up contributions. Workforce reductions hit several agencies, prompting union legal action, and leadership changes at the Federal Labor Relations Authority may affect union rights. Lawrence emphasizes the importance of staying informed about these evolving policies and benefits.

• (00:00) - Introduction: Your Weekly Federal Briefing