PolicyBrief
S. 511
119th CongressFeb 11th 2025
Protecting Taxpayers’ Wallets Act of 2025
IN COMMITTEE

The "Protecting Taxpayers Wallets Act of 2025" mandates federal agencies to charge labor unions for the use of agency resources, including employee time, with strict penalties for non-compliance.

Joni Ernst
R

Joni Ernst

Senator

IA

LEGISLATION

Federal Unions Face New Fees for Resource Use Under 'Protecting Taxpayers Wallets Act of 2025'

The "Protecting Taxpayers Wallets Act of 2025" (SEC. 1) aims to make federal labor unions pay for using government resources. It's a straightforward idea, but the details are where things get interesting – and potentially problematic for federal employees who are union members.

Paying for the Privilege: Union Dues Plus...

This bill (SEC. 2) isn't just about unions reimbursing the government for paperclips and printer ink. It's about charging them for everything, including "union time" – the time employees spend on union activities instead of their regular duties. Think shop stewards handling grievances, negotiating contracts, or addressing workplace safety concerns. The cost? The employee's hourly rate multiplied by the hours spent on union business. The value of any other agency resources they use, determined by GSA or market rates, is also added to the bill. This could be office space, equipment, or even access to agency information systems.

Imagine a federal employee, Sarah, who's also a union rep. If she spends 10 hours a week helping colleagues with workplace issues, her union would be billed for those 10 hours at her hourly rate. If she uses a government computer and office space, add that to the tab, too. This could quickly become a significant financial burden on unions.

The Clock is Ticking – And Penalties are Steep

Agencies have to send the bill to unions quarterly (SEC. 2), and unions have 60 days to pay. Late payments? That's where the teeth come in. Interest starts accruing (at the 30-year Treasury rate plus 1%!). After 90 days, the union loses access to agency resources and union time is suspended. At 180 days, payroll deductions for union dues are cut off. And at 380 days? The union can be decertified – meaning it loses its legal right to represent employees. Recertification is only possible after all outstanding fees are paid.

This creates a serious risk for unions. A dispute over the valuation of resources, a delay in payment, or even an honest mistake could lead to a cascade of penalties, ultimately jeopardizing the union's existence. And remember, the bill specifically states that these valuations cannot be challenged through standard labor dispute processes (SEC. 2).

Big Brother is Watching (Union Time)

The bill requires agencies to track union time using existing time and attendance systems (SEC. 2). And if there are inaccuracies? Employees – likely union reps – face disciplinary action. This raises concerns about potential pressure on employees to underreport union time, further hindering union activities. It also puts a significant administrative burden on agencies.

No Forgiveness, No Waivers

Adding another layer of rigidity, the bill explicitly prohibits agencies from forgiving or reducing any fees charged (SEC. 2). This means there's no room for negotiation, even in cases of hardship or legitimate dispute. Every two years, agency Inspectors General will be auditing compliance and reporting to agency heads and congressional committees (SEC. 2).

The Bottom Line

While the stated goal is to protect taxpayers, the "Protecting Taxpayers Wallets Act of 2025" has the potential to significantly impact the financial stability and operational capacity of federal labor unions. The combination of broad fees, strict payment deadlines, harsh penalties, and detailed tracking requirements creates a challenging environment for unions and their members. It raises questions about whether the bill's true intent is cost recovery or undermining the power of organized labor within the federal government.