Federal Freeze Act

This legislation imposes significant restrictions on federal agency staffing and compensation. For a one-year period following its enactment, federal agencies are prohibited from increasing their total number of employees beyond the level present on the date of enactment, effectively establishing a hiring freeze . During this same year, the annual rate of basic pay for federal employees is also frozen, meaning no salary increases are permitted. However, the bill includes specific exemptions to both the hiring freeze and subsequent reductions. Agencies may still appoint individuals if the agency head determines the appointment serves the interest of law enforcement, public safety, or national security , or if the individual is essential to respond to a declared emergency. These critical personnel are also excluded from mandated reductions in force, which require agencies to reduce their employee count by 2% within two years and 5% within three years of enactment.