Debate over the Trump administration’s rapid cuts and shutdowns of federal agencies and employees is more than a news ticker scrolling across a TV screen. The abrupt actions reached people in Vigo County’s significant federal workforce this week.
A decision through the Federal Bureau of Prisons will reduce or eliminate retention pay — added income to help recruit and retain employees in “hard to fill” positions — which increases an employee’s salary by between 10% and 25%, and in select cases 35%.
According to the American Federation of Government Employees (AFGE), Bureau of Prisons workers nationwide were “verbally notified” on Tuesday of the decision to reduce or eliminate special recruitment and retention pay for staff and officers at federal facilities.
The cut will affect around 70 employees at the Terre Haute Federal Correctional Complex, including lieutenants who supervise correctional officers, and workers in the health services and psychology units, Brandy Moore White — national president of the AFGE Council of Prisons Locals 33 — told the Tribune-Star on Friday morning.
The Council and the AFGE have called on Congress to reverse the decision immediately.
The Bureau of Prisons affirmed the “difficult” bureau-wide decision in an email response Friday morning to the Tribune-Star from Randy Ament, BOP executive assistant in Terre Haute. The response said “budget constraints” prompted the action, which takes effect March 23.
The FCC Terre Haute has approximately 690 employees, according to the Terre Haute Economic Development Corp. The FCC includes a minimum security work camp, a medium security prison (Federal Correctional Institute) and a maximum security penitentiary.
It has about 3,000 inmates, about 1,300 of whom are in the penitentiary.
Prison workers constitute a large part of federal jobs in Vigo County. A total of 1,204 people in Vigo County worked federal jobs in 2023, the latest figures from the U.S. Bureau of Labor Statistics. That’s 2.2% of Vigo County’s overall workforce of 46,225 people.
Throughout the 21 counties comprising Indiana’s 8th congressional district, there were 8,617 federal workers, or 2.4% of the total workforce, according to a 2024 Congressional Research Service report.
In its response to the Tribune-Star, the BOP acknowledged the decision’s impact on workers, but said budgetary limits forced it.
“This action is being taken as part of an effort to address a significant budget shortfall,” according to Friday’s BOP statement, relayed by Ament. “The agency understands the critical role retention incentives play in supporting our dedicated employees, some of whom receive incentives as high as 35% of their salary.
“This decision was not made lightly, and we recognize the financial hardship this may cause for employees who rely on those incentives. However, the current financial challenges necessitate this action to ensure the long-term stability of the agency and to maintain operations across the board.
“We deeply value the work our employees do every day, and this decision reflects our continued commitment to protecting jobs and minimizing the impact on our workforce,” the BOP statement continued. “The FBOP will continue to monitor the budget situation and adjust its financial strategy as needed to ensure the agency can continue fulfilling its vital mission while supporting its dedicated employees.”
In a letter penned Tuesday by White, the Council of Prisons Locals 33 and the AFGE called on Congress to reverse the decision immediately. Understaffed prisons need the retention pay to safely operate facilities, the unions contend.
“Our members are working in extremely difficult and understaffed conditions. Removing or reducing retention pay is not just a financial blow, it’s a blow to morale,” White wrote to Congress. “This decision is shortsighted and will only exacerbate the staffing crisis, leading to even more turnover, burnout, and instability in addition to additional funding to fill overtime for the vacant positions.”
AFGE National President Everett Kelley questioned the logic of the cuts in a statement this week, given a parallel action pushed by the Trump administration.
“Cutting salaries makes zero sense — especially now, as they are being required to take on the added responsibility of housing undocumented immigrants detained by the Department of Homeland Security,” Kelley said in the statement. “I call on the Trump administration to reverse its foolhardy decision and to work with Congress to provide BOP funding it needs to keep our prisons staffed and our workers there safe.”
Indeed, the BOP acknowledged to The Associated Press on Feb. 7 that federal prisons would be used to detain people arrested in the Trump administration’s immigration crackdown, but wouldn’t say how many detainees or which prisons were involved.
Prison staffs are already under strain. In its plea to Congress, the Council of Prisons Locals and AFGE cited Bureau of Prisons reports of “high turnover rates, dangerous working conditions and understaffed institutions. Staff members regularly face increased workloads, higher risks of violence and the pressure of keeping our correctional facilities safe under less-than-ideal circumstances.”
The Bureau of Prisons is the Justice Department’s biggest agency with more than 30,000 employees, 122 facilities, 155,000 inmates and an annual budget of about $8 billion, according to AP reports.
In terms of pay, a 2023 hiring event at the Terre Haute Federal Correctional Complex sought applicants for correctional officer jobs with a salary range of $46,495 to $70,679, plus shift-differential, overtime and holiday pay. Also offered were signing bonuses of $10,000 or 25%, whichever was higher, plus benefits.
AFGE Local 720, a union representing Terre Haute prison staff, hadn’t responded to phone and email requests for comment as of Friday afternoon.
Leah Selk, press secretary for U.S. Sen. Todd Young of Indiana, said his office had no comment on the issue.
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