Federal Freeze Act

The "Federal Freeze Act" aims to impose significant restrictions on federal agencies regarding staffing and compensation. For a one-year period following its enactment, the bill prohibits agencies from increasing their total number of employees beyond the level present on the date of enactment, effectively implementing a hiring freeze. An exception to this hiring freeze allows for new appointments if the agency head determines they are necessary for law enforcement, public safety, or national security. Additionally, during this same one-year period, the annual rate of basic pay for existing federal employees may not be increased. Beyond the initial freeze, the Act mandates a phased reduction in the federal workforce. Specifically, agencies must reduce their employee count by 2 percent within two years of the Act's enactment and by 5 percent within three years, relative to their baseline staffing levels. These measures are intended to control federal spending and reduce the size of the federal workforce.