IRS, SSA Suspension Leaves Federal Employees Without Leave Cushion
News fromCourierPR · 3 min read
LOS ANGELES, CA, September 29, 2026 /CourierPR/ -- The IRS and Social Security Administration have suspended advanced sick leave and annual leave, leaving tens of thousands of federal employees without a key safety net for covering unpaid medical absences. Effective July 24, 2026, the IRS stopped approving new advanced sick and annual leave requests, and denied requests that were still pending. The Social Security Administration, now led by the same commissioner, followed days later. Both agencies said the amount of leave employees had borrowed against future accruals had grown "significant and unsustainable." Employees who already had advanced leave on the books keep those hours, but no one at either agency can request a new advance until further notice.
The National Treasury Employees Union, which represents roughly 50,000 IRS employees, has filed suit in the U.S. District Court for the District of Columbia, arguing that denying every pending request without individual review violates its collective bargaining agreement. AFGE Council 220, which represents SSA workers, has raised a similar objection, noting that more than half of SSA's frontline workforce earns below a living wage, making unpaid leave a genuine financial hardship rather than a minor inconvenience. As of this writing, no other federal agency has announced a similar blanket suspension, but the dispute is still working its way through the courts.
David Quiett, a financial advisor who works with federal employees on income protection, says the move is a reminder of something many federal workers don't realize until they need it: federal benefits have never included short-term disability insurance. What changed is that now they're saying no to everyone, all at once. For an employee counting on that option to get through a surgery or difficult pregnancy, that's not a policy footnote. That's their paycheck.
The National Treasury Employees Union, which represents roughly 50,000 IRS employees, has filed suit in the U.S. District Court for the District of Columbia, arguing that denying every pending request without individual review violates its collective bargaining agreement. AFGE Council 220, which represents SSA workers, has raised a similar objection, noting that more than half of SSA's frontline workforce earns below a living wage, making unpaid leave a genuine financial hardship rather than a minor inconvenience. As of this writing, no other federal agency has announced a similar blanket suspension, but the dispute is still working its way through the courts.
Federal employees who want to understand their options can fill out a short form on FederalEmployeeInsuranceBenefits.com to get personalized guidance on short-term disability coverage. Federal Employee Insurance Benefits is an independent insurance advisory firm serving federal, USPS, and VA employees nationwide. The firm specializes in helping government workers identify gaps in their federal benefits and finding supplemental coverage that fits their needs. David Quiett works directly with clients to review their options and build income protection plans tailored to their situation.
The IRS and Social Security Administration have suspended advanced sick leave and annual leave, leaving tens of thousands of federal employees without a key safety net for covering unpaid medical absences. Effective July 24, 2026, the IRS stopped approving new advanced sick and annual leave requests, and denied requests that were still pending. The Social Security Administration, now led by the same commissioner, followed days later. Both agencies said the amount of leave employees had borrowed against future accruals had grown "significant and unsustainable." Employees who already had advanced leave on the books keep those hours, but no one at either agency can request a new advance until further notice.
The National Treasury Employees Union, which represents roughly 50,000 IRS employees, has filed suit in the U.S. District Court for the District of Columbia, arguing that denying every pending request without individual review violates its collective bargaining agreement. AFGE Council 220, which represents SSA workers, has raised a similar objection, noting that more than half of SSA's frontline workforce earns below a living wage, making unpaid leave a genuine financial hardship rather than a minor inconvenience. As of this writing, no other federal agency has announced a similar blanket suspension, but the dispute is still working its way through the courts.
Federal employees who want to understand their options can fill out a short form on FederalEmployeeInsuranceBenefits.com to get personalized guidance on short-term disability coverage. Federal Employee Insurance Benefits is an independent insurance advisory firm serving federal, USPS, and VA employees nationwide. The firm specializes in helping government workers identify gaps in their federal benefits and finding supplemental coverage that fits their needs. David Quiett works directly with clients to review their options and build income protection plans tailored to their situation.