Participants in both the Federal Employees Health Benefits and Postal Service Health Benefits programs may have more incentive than usual to take advantage of Open Season, as premium costs continue to surge in yet another year of double-digit percentage increases.

For 2026, FEHB premiums are rising by an average of 12.3% for enrollees, while those in PSHB will see their premium costs rise by an average of 11.3%. It comes after premiums increased by about 13.5% and 11.1% for FEHB and PSHB respectively in 2025.

Shane Stevens, associate director of healthcare and insurance at the Office of Personnel Management, acknowledged what he said was a “frustrating environment” for insurance enrollees who are facing continually rising premium costs.

“Health care costs have become somewhat unsustainable,” Stevens said during Federal News Network’s 2026 Open Season Exchange. “I’ve watched employees have to get second jobs to get insurance and cover it. I’ve watched where they’ve reduced the amount of coverage in order to afford it. In some cases, they’ve gone completely without insurance.”

Combating federal health insurance premium cost increases

To try to combat rising premiums costs, Stevens said OPM’s strategy will revolve around reducing “fraud, waste and abuse” in the government’s insurance programs.

“We have a fiduciary responsibility to the taxpayers, to our plan participants, the retirees, the current federal workers. Yet we have very little insight into what we’re actually spending this coming year,” he said. “We’re working very hard to try and get all of this information, all of this data, to be able to make good decisions, which will help us to detect fraud, waste, abuse and overpayments.”

OPM is also on a one-year deadline to implement recently added requirements from the One Big, Beautiful Bill Act. One provision of the reconciliation bill, called the FEHB Protection Act, requires OPM to create a system for verifying the eligibility of FEHB enrollees. The bill also directs OPM to include eligibility audits in any fraud risk assessments of the program.

The push in Congress came after the Government Accountability Office in 2022 found that OPM may be spending up to $1 billion annually on ineligible FEHB enrollees. Removing ineligible members, however, would reduce costs to the government but not necessarily lower premiums for beneficiaries directly.

“If we get the data and the information we need, I’m convinced that we could save approximately 7% to 8% per year,” Stevens estimated.

Addressing staff needs, other challenges within OPM

OPM’s insurance programs are facing other major challenges as well. The platform for the PSHB program in particular is at risk of an operational failure, according to OPM’s inspector general office. An OIG report over the summer found that staffing shortages at OPM this year, coupled with funding issues, may negatively impact enrollees’ experience or ability to change enrollments during Open Season.

On top of that, GAO recently reported that the staffing shortages at OPM are hindering the agency’s ability to address risks of fraud in the FEHB program.

When asked how OPM has responded to the watchdog’s concerns, “We do believe our staff can work effectively through everything,” Stevens said, adding, “In the short run, we’ve improved our systems and our processes to where we’re not concerned about delays or challenges.”

Stevens added that he plans to roll out more artificial intelligence tools for participants to use in the enrollment process for future years of Open Season.

Emulating the ‘Make America Healthy Again’ agenda

In addition to addressing fraud and saving costs, Stevens also described his goal of shifting the government’s insurance programs toward what he described as a “well care model,” as opposed to what he describes currently as a “sick care model.”

“We want to move more toward a holistic approach and something to where we’re not doing a pharmaceutical-first type of intervention, or where we have faith-based behavioral health care to where they can give true solutions,” he said.

“If we get healthier and we start making better health decisions, then we’re going to be able to reduce the costs, the premiums,” Stevens added.

It’s not yet entirely clear what OPM may change in the FEHB or PSHB programs based on the big-picture priorities Stevens outlined during the interview.

But for 2026, OPM already made one distinct change: Carriers were required to end coverage of all gender-affirming care, in line with an executive order from President Donald Trump earlier this year.

Enrollees who are mid-treatment for gender-affirming care can still continue receiving coverage, according to OPM’s new requirements, but the definition of “mid-treatment” is determined individually by each health carrier. Federal health plan experts have recommended that those impacted by OPM’s change check their carrier’s plan brochure for more details.

Going forward though, Stevens also expressed interest in reconsidering coverage of GLP-1 medications, a class of drugs that are prescribed to treat diabetes and obesity.

“We want to look at utilizing these as a tool for weight loss or for treatment of diabetes,” Stevens said. “However, we don’t want it to be viewed as the end-all be-all of, ‘this is going to save me.’”

Currently, OPM requires all carriers to cover at least one type of GLP-1 for enrollees, prescribed for weight loss. It’s a requirement that health care experts have said is a positive development and ahead of the curve compared with the private sector.

But Stevens said he wants to encourage physical exercise and nutrition over GLP-1s, through the government’s insurance programs. That type of change, he said, may also lead to some cost savings.

“I want to try and move away from that, move more to incentivizing providers to have good health outcomes for their patients versus prescribed medications,” he said.

Stevens’ approach for what he sees for the future of FEHB and PSHB mirrors goals of the Trump administration’s larger push toward the “Make America Healthy Again” agenda.

Stevens, for instance, discussed what he views as a “broken” health care system that focuses on prescriptions first — emulating a sentiment that Health and Human Services Secretary Robert F. Kennedy Jr. has expressed and that has influenced some of the Trump administration’s major health initiatives.

RFK’s MAHA report from May outlined contentious views on vaccines, the nation’s food supply, pesticides and prescription drugs. The HHS report, parts of which have received strong criticism, additionally includes increased scrutiny of childhood vaccines and “fear-based” views on farming chemicals, while also blaming ultra-processed foods for unhealthy Americans.

“We truly have a secretary of health that’s fighting for the real overall well-being of health. We have a president that truly cares about it, and then we have a lot of appointees that are trying to make a big difference,” Stevens said. “It’s a massive shift in the paradigm of how we look at health care — really looking at outcomes versus prescriptions and a lot of the things that have made us an unhealthy population.”

Encouraging Open Season action

In the immediate term, Stevens encouraged participants in FEHB and PSHB over the next several weeks to take advantage of Open Season. Participants have until the enrollment window closes on Dec. 10 to spend time looking at plan brochures and comparing various insurance options that are available to them.

The push to take action during Open Season comes as relatively few insurance enrollees end up selecting a different plan each year.

“Change is tough, change is scary, and a lot of times I think people would just rather stick with their current plan and do the same, regardless of how much it could cost them more,” Stevens said. “It will surprise a lot of people in seeing that if they were to shift over to a different type of plan that they could save a substantial amount of money.”

For measuring this year’s Open Season success, Stevens said he will be looking for any potential shifts in the statistic that just 5% of enrollees change their plans each year.

“We encourage everybody to take the time — I’m talking maybe an hour of your time — to jump in and look at the different tools that we’ve created and make sure that you’re picking the plan that’s best for you,” he said. “We’ll take all of that in and see what we can do to improve our systems and processes to make it even better next year.”

Discover more articles and videos now on our 2026 Open Season Exchange event page.

The post 2026 Open Season Exchange: OPM’s Shane Stevens on big-picture plans for FEHB, PSHB first appeared on Federal News Network.

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The Trump administration is looking to hire thousands of federal law enforcement personnel, as part of expanded immigration enforcement efforts.

But the courts handling these cases aren’t seeing the same surge in resources. Several immigration judges recently fired by the Justice Department say the court system is losing staff, and is unable to address a multi-million case backlog.

Immigration and Customs Enforcement has intensified operations across the country, and detention facilities are full of individuals waiting for their cases to be heard.

The One Big, Beautiful Bill Act passed this summer gave the Department of Homeland Security billions of dollars to hire 10,000 new ICE agents, as well as 5,000 customs officers and 3,000 Border Patrol agents.

The legislation bill also authorized DOJ to hire about 100 new immigration judges, bringing their total headcount to about 800 nationwide.

But the total number of immigration judges is dwindling under the Trump administration, according to data tracked by the International Federation of Professional and Technical Engineers and its affiliate, the National Association of Immigration Judges.

According to the unions, the total number of immigration judges this year has dropped from 700 to 600. The Trump administration terminated more than 80 immigration judges since taking office, while others have retired or accepted voluntary separation incentives.

Recently terminated immigration judges say their colleagues still on the job don’t have the resources needed to address a backlog of about 3.4 million cases.

Before he was fired in September, Ted Doolittle, a former immigration judge at the immigration court in Hartford, Connecticut, was one of two judges handling about 46,000 cases.

Doolittle said he received his termination email one afternoon, as he was preparing for a docket of 57 cases the next day.

“The caseload is crushing. I think it’s probably one of the most overburdened court systems,” Doolittle said Thursday at an event at the National Press Club.

In order for the Justice Department to meaningfully address the backlog, Doolittle said the department needs about 2,000 or 3,000 immigration judges — not the few hundred currently working.

“That’s what’s going away, is the right of these people to have their cases heard fairly,” he said.

Emmett Soper, a former immigration judge in Virginia, who was fired in August after serving nine years on the job, said the widespread terminations are leading to a “chaotic situation,” where courts are scrambling to reassign cases to remaining judges.

“Each immigration judge is responsible for hundreds or thousands of these cases, and every time the administration unlawfully fires an immigration judge, they’re no longer there. Their cases have to be redistributed to the judges who remain at the court,” Soper said. “This is not a fair way to run a court system.”

Anam Petit, former immigration judge in Virginia, who was fired in September, said judges are hearing, at a minimum, 25 cases a day — sometimes 50 or more cases — in multiple languages.

“You can have a docket with five different languages,” she said.

Matt Biggs, president of the International Federation of Professional and Technical Engineers, said that the “lion’s share” of firings have been targeted at immigration judges who were hired during the Biden administration.

“Immigrants in this country are entitled to due process, and by firing these judges, you’re denying them their due process,” Biggs said.

To address the backlog, DOJ is training hundreds of military lawyers to temporarily serve as immigration judges. But Biggs said most of these don’t have a background in immigration law.

“We appreciate their service to our nation, and it’s no disrespect to them, but they should not be in these positions,” he said.

Federal News Network reached out to DOJ and DHS for comment.

The former judges said defendants are also failing to show up for court dates this year, because they are afraid of being detained by ICE agents afterward. Petit said that it was a “daily occurrence” for defendants in her courtroom.

“It has a huge chilling effect,” she said. “People are afraid to come to court because they’re seeing people get detained in the hallways.”

Defendants who don’t appear for their court date automatically receive a removal order, and have no legal avenue to appeal that decision.

Doolittle said ICE agents prefer making arrests in courthouses, because individuals have gone through security and been screened for weapons. He recalled that toward the end of his tenure, ICE agents repeatedly tased a suspect in the court’s lobby before bringing him into custody.

“Many of the court staff lost sleep — like physically, weren’t able to sleep for a period afterwards. And of course, it makes them question whether that’s a job they want to continue,” he said.

The post Immigration courts understaffed and overwhelmed, as Trump administration surges enforcement hiring first appeared on Federal News Network.

© The Associated Press

Amazon’s cash tax bill has dropped sharply this year under a new U.S. tax law that lets companies immediately deduct the cost of equipment and research — a policy designed to encourage spending on technology development and other investments.

The decrease is detailed in the company’s third-quarter 10-Q filing, released Friday morning following its blockbuster earnings report. Amazon’s shares rose more than 10% in early trading after beating expectations and reassuring investors about long-term AI demand.

In the filing, Amazon cites the “One Big Beautiful Bill Act of 2025” as a key factor in the tax deduction. The situation illustrates how tax changes championed by President Trump and the Republican-led Congress are rewarding U.S. investment and reshaping corporate finances.

But it’s not as simple as a basic tax break: while the law accelerates short-term deductions for domestic investment, it also changes the tax treatment on foreign profits — boosting long-term tax liabilities overall.

According to its quarterly filing, Amazon paid $1.1 billion in cash for income taxes in the third quarter, a 45% decrease from the $2 billion it paid in the same period last year — even as quarterly profits rose 38% to $21.2 billion. For the first nine months of 2025, cash tax payments fell to $6.8 billion, down from $8.2 billion in 2024.

The new law changed two key rules that impact companies making big capital investments.

• First, it reinstated 100% “bonus depreciation,” allowing companies to deduct the full cost of new equipment — such as servers for AWS and AI or warehouse robotics — in the year it’s purchased rather than spreading the deduction over many years.
• Second, it restored the immediate expensing of domestic R&D costs, reversing a recent rule that required this spending to be amortized over several years.

Boosting capital spending and cutting jobs

For a company like Amazon, these changes create a significant and immediate reduction in taxable income. The tech giant spent $35.1 billion on property and equipment in the third quarter, up 55% from a year earlier, driven by massive investments in AI infrastructure.

Backers of the U.S. tax changes said they would spur investment and job creation in the United States, but Amazon’s situation shows that the reality is more complicated. The company is reaping the benefits of the new tax incentives while eliminating about 14,000 corporate jobs. 

Speaking on Amazon’s earnings call, CEO Andy Jassy attributed the layoffs not to cost-cutting but to efforts to simplify operations and reduce bureaucracy after years of growth. Amazon took a $1.8 billion pre-tax charge in the quarter for severance and other costs related to the layoffs.

Amazon isn’t alone in spending big on AI infrastructure or benefitting from the tax changes.

Although they didn’t go into as much detail as Amazon did, Microsoft and Google both referenced the 2025 U.S. tax law in their latest quarterly reports, noting the reinstatement of immediate R&D expensing and accelerated depreciation. Both companies are realizing similar near-term tax benefits as they expand their AI and cloud infrastructure investments.

Long-term tax provision still intact

For Amazon, the changes in U.S. tax law mark a new chapter in a long-running national debate. The company, which faced criticism in years past for paying little or no federal income tax despite strong profits, has long maintained that it pays what it owes under U.S. law.

However, the immediate reduction is only part of the picture.

While Amazon’s cash payments declined, the tax expense reported on its income statement — a figure based on accounting rules rather than cash paid — nearly doubled. The company’s income-tax provision for the first nine months of 2025 was $14.1 billion, up from $6.9 billion in the same period last year.

Amazon’s filing says this increase was also driven by the new tax act, which reduced other benefits, such as the deduction for profits made overseas. 

This $7.3 billion gap between its accounting provision ($14.1 billion) and its cash tax bill ($6.8 billion) shows how the new law shifts the timing of tax payments rather than eliminating them. In effect, the deductions reduce the company’s cash outlay for taxes in the short term but will ultimately be paid in future years as those assets are depreciated on the company’s books.