Federal Employee Short-Term Disability Insurance Act of 2026

This bill establishes a voluntary short-term disability insurance program for federal employees to help replace lost wages during non-work-related injuries, family caregiving, childbirth, or adoption. The Office of Personnel Management would contract with private insurers to offer coverage that pays up to 70% of an employee's pay for a maximum of 12 months, with premiums paid entirely by the employee. The program includes protections such as no preexisting condition exclusions, preemption of state laws regarding coverage, and dispute resolution mechanisms for claim denials.