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Understanding HR236: Federal Employee Return to Work Act

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The Federal Employee Return to Work Act, or H.R. 236, is a proposed law that aims to change how federal employees are paid if they work from home. It would stop pay raises for those who telework at least one day a week, pushing more workers to return to the office. This bill is part of a larger debate on the future of remote work in the federal government.

What This Bill Does

The Federal Employee Return to Work Act proposes that federal employees who work from home at least one day a week will no longer receive annual pay raises or increases based on where they live. Currently, federal workers get pay raises based on the cost of labor in the private sector and additional pay if they live in high-cost areas like Washington, D.C. This bill would stop these increases for those who telework, starting the first fiscal year after the bill becomes law. There are some exceptions to this rule. Employees who need to work from home due to disabilities, members of the Foreign Service, federal law enforcement officers, and active-duty members of the Armed Services would still be eligible for pay raises. The bill aims to encourage more federal employees to work in the office rather than remotely. The bill was introduced by Rep. Dan Newhouse and has 22 Republican cosponsors. It has been referred to the House Committee on Oversight and Government Reform but has not yet moved forward. The bill has strong support from Republicans but faces opposition from Democrats and federal employee unions.

Why It Matters

This bill could significantly impact federal employees who currently work from home, especially those living in high-cost areas. If passed, many could see their paychecks reduced, which might lead to financial challenges, especially for those who rely on the extra income from locality pay. For everyday Americans, the bill could mean changes in how efficiently federal services are delivered. Supporters argue that having more employees in the office could improve productivity and reduce service backlogs. However, opponents worry that it could lead to higher turnover among federal workers, which might slow down services like processing tax returns or social security benefits.

Key Facts

  • Estimated Cost Savings: The bill could save $2-4 billion annually by denying raises to teleworkers.
  • Implementation Timeline: If passed, the changes would take effect the first day of the fiscal year after enactment.
  • Number of People Affected: Approximately 1 million federal employees who telework at least one day a week.
  • Key Dates: Introduced on January 7, 2025; no further actions yet.
  • Exceptions: Employees with disabilities, Foreign Service members, law enforcement, and active-duty Armed Services are exempt.
  • Current Status: Referred to the House Committee on Oversight and Government Reform; strong Republican support but no bipartisan backing.
  • Real-World Impact: Could affect taxpayer value and federal service efficiency, with potential savings or increased turnover costs.

Arguments in Support

- Encourages In-Office Work: Supporters believe that having employees in the office will improve productivity and collaboration. - Saves Taxpayer Money: By cutting pay raises for teleworkers, the government could save $2-3 billion annually. - Restores Pre-Pandemic Norms: The bill aims to return to work practices before the pandemic, which some believe were more efficient. - Promotes Fairness: It addresses the perceived unfairness of teleworkers receiving high locality pay without living in those areas. - Enhances Accountability: In-person work is seen as a way to improve supervision and reduce the risk of fraud.

Arguments in Opposition

- Harms Recruitment and Retention: Critics argue that cutting pay could make it harder to attract and keep federal workers. - Ignores Telework Benefits: Studies show that telework can boost productivity, which the bill overlooks. - Disproportionately Affects Parents and Caregivers: Those needing flexible schedules might face financial penalties. - Causes Financial Hardship: Many federal workers rely on pay raises to keep up with living costs, especially in expensive areas. - Politically Motivated: Opponents see the bill as part of a broader political agenda against federal workers.
Sources8
Last updated 2/17/2026
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    govinfo.gov
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    congress.gov

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Understanding HR236: Federal Employee Return to Work Act | ModernAction