[1]The Department of Veterans Affairs announced [2] on July 7, 2025, that it’s on pace to reduce the total number of VA staff by nearly 30,000 employees by the end of the fiscal year. Employee reductions through the federal hiring freeze, deferred resignations, retirements, and normal attrition have eliminated the need for a RIF.
During President Clinton’s term, he reduced the federal workforce by 400,000, with most of the staffing reductions achieved through normal attrition, the Voluntary Early Retirement Authority (VERA), often accompanied by a $25,000 Voluntary Separation Incentive Payment (VSIP), and by not filling non-critical staffing vacancies.
I believe much of the same will account for the majority of downsizing initiatives by the new administration, considering they also offered deferred resignations initially with almost 8 months of severance pay. Other agencies will surely follow suit to avoid RIFs.
[3]
OPM’s Retirement Application (ORA) Portal Clarification
Paul, a site visitor who recently retired, sent clarification on accessing OPM’s portal using a private email address.
In my ORA article [4], I mentioned that only those with a .gov email address can access the portal. Those who accepted a deferred resignation under the Fork in the Road program had no access to government resources or agency email accounts.
The former employee’s Human Resources office must submit their non-government email address, which they will use to complete their retirement application, to the portal. This email address must match the one provided by the employee to HR.
The separating employee then logs into the ORA portal using that email address via “Login.gov”. Paul completed all required steps in the ORA portal using his personal Gmail address with no issues.
Paul advised that you can use a private non-government email address if it is “pre-authorized” by HR.
New Car Interest Deduction
This new deduction is not only beneficial for many new car purchases but also benefits American-made cars and foreign models assembled in the United States. The One Big Beautiful Bill Act [5] allows auto loan interest deductions of up to $10,000 per year for interest paid on a qualifying auto loan, good news for many but not all.
Fortunately, this tax break starts with purchases made in 2025 and runs through 2028, and you don’t have to itemize to claim the deduction.
Qualifying Criteria
- New cars must be assembled in the United States, excluding many imports including popular Toyota, Nissan, and Honda models.
- The deduction is limited to $10,000 per year and is eliminated for individuals earning more than $100,000 or couples making over $200,000. This will exclude many households.
- The deduction applies to cars purchased after December 31, 2024, and is limited to vehicles assembled in the U.S.
- This is a temporary tax break, available starting this year and ending in 2028. These dates could be extended when they run out by the new Congress.
- ATVs, trailers, and campers wouldn’t be eligible.
The Big Beauty Bill Act ends federal tax incentives for electric vehicles. It also reduces penalties for automakers that violate fuel efficiency standards.
[6]
No Taxes on Social Security Clarification
I received several comments about the article I wrote on this subject. A newsletter subscriber commented, “I believe your most recent article, ‘Social Security Tax Relief for Millions of Senior Citizens [7], ‘ is misleading. The bill does not contain any provisions to eliminate or even reduce taxes on Social Security. What it does do is reduce some people’s taxes through a new temporary $6,000 deduction for about 24% of seniors.”
He further states, “Social Security in a message many labeled as partisan, said the legislation included a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries”. You parroted that message, yet it bears repeating that the bill does not contain any provisions to eliminate or even reduce taxes on Social Security.”
He referenced several articles from the Washington Post, CBS News, and The Hill.
My Reply
The Senate and House Parliamentarians didn’t allow changes to the Social Security tax code in the reconciliation bill. Hence, the House and Senate worked around that and developed a senior deduction that provided a similar result, fewer taxes for many seniors.
The bill provides relief in a way that could be included in the bill. The House only approved a $4,000 deduction, and the Senate increased it to $6,000. This bill, along with the new senior deduction, will be a huge help to many. The partisan articles you mention left out these details and didn’t credit Congress for what they did accomplish, tax relief for seniors.
I generally use source documents for my research; for this article, I used the One Big Beautiful Bill Act [5], Social Security’s website, and the White House press release. I don’t copy other columnists’ work; instead, I conduct my research. When I do use quotes from others, I list the source often with a link to the referenced document.
The President promised relief on Social Security taxes during his re-election campaign, and the House and Senate approved this workaround to provide relief to millions of Americans.
Even Axios, which is considered a liberal news outlet, said in a recent article, “Trump promised to eliminate taxes on Social Security income. Lawmakers couldn’t pull that off entirely, given the constraints of passing a reconciliation bill and changing Social Security law. This break comes close.”
The End Result
I want to thank all those who subscribe to my newsletter, read my blog, and visit our Federal Employees Retirement Planning site. Your input is invaluable, and I appreciate your constructive feedback; it adds clarity to often-confusing and misunderstood subjects. Please keep your input coming.
Helpful Retirement Planning Tools
Join other federal workers on the FedWork Network [8].
Sign up for their Free Service to get started.
- Financial Planning Guide for Federal Employees and Annuitants [9]
- Free Retirement Planning Report [10]
- TSP Guide [11]
- Budget Work Sheet [12]
- Retirement Planning for Federal Employees & Annuitants [13]
- The Ultimate Retirement Planning Guide – Start Now [14]
- Deciding When To Retire – A 7-Step Guide [15]
- 2025 Federal Employee’s Leave Chart [16]
- Medicare Guide [17]
- Social Security Guide [18]
[19]Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.
Last 5 posts by Dennis Damp
- Social Security Tax Relief for Millions of Senior Citizens [7] - July 4th, 2025
- Apply for Retirement on OPM’s Online Application Service [4] - June 27th, 2025
- New Retirement Application Portal Launched [20] - June 20th, 2025
- 2026 COLA Estimates & Retirement Processing Update [21] - June 12th, 2025
- Electronic Official Personnel Folder Platform Launched [22] - June 5th, 2025
- Electronic Retirement Application Submissions [23] - May 30th, 2025
- Powerless, Keeping the Lights On [24] - May 22nd, 2025
- Request Your 2025 Retirement Benefits Booklet from OPM [25] - May 16th, 2025
- Projected Annuity Calculator Updates for FERS and CSRS [26] - May 9th, 2025
- Hiring Freeze, Schedule F, and Social Security Benefits [27] - April 25th, 2025
- Potential Benefit Cuts - It's Not Time to Panic [28] - April 17th, 2025
- UPDATE - Deferred Resignations and VERAs Return [29] - April 11th, 2025