Today, the Office of Management and Budget published a revision to Circular A-45R: Rental and Construction of Government Housing. This important update aims to address the impact of rising rent costs, improve the affordability of government housing for all federal employees and mitigate the challenges faced by the Forest Service to attract and retain employees. As you may recall, we implemented a temporary rent refund in July 2024 using the secretary’s emergency authority to address these challenges in the short term. At the same time, we worked with OMB and the Department of the Interior to make long-lasting changes to the circular. These changes will result in reduced rental rates for many employees living in government housing.

These revisions reflect a collective effort driven by your voices. Since the meeting I held with all employees in April 2023, our National Housing Project Team has worked to activate the recommendations offered by the employee group tasked with evaluating the circular. In recent months, we’ve worked closely with the Department of the Interior and OMB to ensure these changes reduce financial burdens and enhance housing accessibility for federal employees. I’m proud that the Forest Service has been a leader in this effort since it began in 2023, and I want to thank Secretary Vilsack, Under Secretary Wilkes and many others in the department who supported this effort and helped see it through.

We’ll be holding information sessions to answer any questions you may have. Once implementation details are finalized, employees will receive 60 days’ notice before the temporary rent refund that is currently in place is retired.  

Some of the most significant changes in the updated circular include:  

• Sets the rental rate at either the regional average or the nearest established community, whichever is lower.  

• Provides for a 5% cap on annual rent increases.  

• Includes an exceptions process for unusual circumstances, such as cases of extreme financial hardship, that may exist with respect to government housing.

• Allows for potential adjustments of up to 20% for housing in less than good condition.  

• Revises the dormitory definition to give agencies greater flexibility to use existing shared housing units as dormitories.

• Sets rates for trailer pads to either the national trailer pad average or the regional trailer pad average, whichever is lower.

• Reverts to the prior isolation formula, which will increase the level of rent deductions for many tenants.

• Provides increased administrative adjustments for lack of reliable telephone or internet services, loss of privacy, and housing of excessive or inadequate size.  

Many of the changes are technical in nature and I know you will have questions—we will work to explain the changes in the information sessions and through FAQs. But the bottom line is that the revisions to the circular will mean our government housing will be less expensive for employees. I want to express my sincere gratitude to everyone who contributed to this effort. Your engagement, ideas and feedback were pivotal in achieving these positive changes. This accomplishment is a direct result of your dedication, and it demonstrates the power of collaboration between employees and leadership.

Thank you for making a difference and for your continued commitment to improving our workplace and community.

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