Federal Employee Short-Term Disability Insurance Act of 2026

Key Points

• This bill would create a voluntary insurance program for federal and postal employees. It covers lost pay due to injuries outside of work, caring for a sick family member, or the arrival of a new child through birth, adoption, or foster care.
• Workers who choose to join the program could receive 70 percent of their usual pay for up to 12 months. This benefit is capped at 70 percent of the pay for a top level government pay scale.
• Employees would be responsible for paying 100 percent of the monthly insurance costs through payroll deductions. Because the workers pay for it themselves, the program is designed to not cost the government money for the actual benefits.
• The insurance plans cannot turn people away or charge higher rates because of health problems they already had. This ensures all federal workers have access to the same coverage regardless of their health history.
• Employees can choose how long they wait before their benefits start, such as 8 days or up to 181 days. Choosing a shorter waiting period would result in a higher monthly cost.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.