Fed Benefit Cuts Largely Violate Senate’s Byrd Rule, Chances of Passage in Question

Cuts to federal pay, benefits and civil service protections are among the items in the Senate’s “One Big Beautiful Bill” that were found to violate the Senate’s long standing Byrd Rule. 

The Byrd Rule, named after the late West Virginia Senator Robert Byrd, prohibits “extraneous” provisions from being tacked onto reconciliation bills, which are fast-tracked to bypass a minority filibuster and pass with a simple Senate majority. Instead, items that violate the Byrd Rule must either be removed from the legislation, rewritten, or clear a 60-vote threshold, which is nearly impossible with the Republicans holding 53 Senate seats.

The review of whether provisions violate it, is colloquially known in Washington as the “Byrd Bath.” 

Most Federal Worker Provisions in Violation 

Parliamentarian Elizabeth MacDonough ruled that nearly all of the Senate’s proposed provisions dealing with federal benefits cuts violates the Byrd Rule. That includes a proposal that would have required new federal employees to choose between at-will employment, or a pay a mandatory 14.4 percent retirement contribution, a requirement imposing a $350 fee for filing appeals with the Merit Systems Protection Board (MSPB), and a proposal to charge federal employee unions for use of agency property and official time on a quarterly basis. A portion of the bill to allow the executive branch to reorganize government agencies without Congressional oversight was also found in violation. 

However, the parliamentarian said plans to audit enrollees of the Federal Employees Health Benefits Program (FEHB) can go forward. 

She also gave the green light for a requirement that the government charge a ten percent fee on deductions from federal workers paychecks going to nonprofit organizations and unions, a provision federal employee unions say they will fight.  

“The Byrd Rule is enshrined in law for a reason, and Democrats are making sure it is enforced,” said Senator Jeff Merkely (D-OR), ranking member of the Senate Budget Committee. 

More broadly, the parliamentarian found that a slew of provisions also violate the Byrd Rule. Among them:

• A funding cap on the Consumer Financial Protection Bureau (CFPB)

• Reducing pay of workers at the Federal Reserve

• Language authorizing states to conduct border security and immigration enforcement

• Plans to force states to pay for portions of the Supplemental Nutrition Assistance Program (SNAP)

Senate Majority Leader John Thune (R-SD) could opt to override the Byrd Rule with a majority vote on the floor. However that would break precedent and so far, Senator Thune has not indicated any plans to do that. 

President Trump was hoping to have the whole package passed into law by July 4, a date that is looking increasingly in doubt.