In this episode of The FED Weekly, we recap significant developments for federal employees and retirees for the week of December 21–27, 2025. Key highlights include President Trump’s executive order creating a five-day federal holiday weekend, a finalized 1.0% general pay raise for most federal employees (with federal law enforcement receiving an additional adjustment), and the last steps before the Postal Service Health Benefits program launch. Lawrence also covers the substantial 12.3% health premium increases, the upcoming 2026 COLA for federal retirees, and changes in Medicare Part B premiums—warning that many retirees will see their COLA consumed by these higher costs. The episode discusses TSA’s union decertification, the hiring surge for AI and cybersecurity experts, ongoing debates over telework policies, and legislative updates, including the Shutdown Fairness Act, the Equal COLA Act, and the FAIR Act.