Federal Newscast

The Treasury Department is officially suspending Direct File, a free, online tax filing platform the IRS launched last year. The department says it's exploring alternatives. That includes strengthening its partnership with tax preparation companies through its Free File program. Direct File expanded to 25 states during this year's filing season and saw higher favorability scores. But Treasury says the program cost too much and didn't see enough usage to keep scaling it up. It says the IRS spent more than $40 million on Direct File this year. That breaks down to nearly $140 for every return submitted using Direct File. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Agencies would be required to disclose when artificial intelligence replaces a federal job under a bipartisan bill in the Senate. Senators Mark Warner and Josh Hawley announced the AI-Related Job Impacts Clarity Act yesterday. The bill would require major companies and agencies to report AI-related job effects, including layoffs and job displacement, to the Labor Department. Labor would also be required to compile data on AI-related job effects and publish a report to Congress and the public. The legislation comes amid rising concerns about AI's impact on the job market.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

As Open Season approaches, one Republican is raising concerns about funding for the Federal Employees Health Benefits program. Oklahoma Senator James Lankford is questioning the Office of Personnel Management on how it plans to avoid exhausting the FEHB's trust fund. He says it's a concern, since there aren't any incoming contributions to the trust fund under the government shutdown. In response to Lankford's questions, OPM said that if needed, it would be able to let health carriers request additional funding from contingency reserves. But for the time being, OPM says all FEHB plans have sufficient funds to pay claims.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Funds in the Thrift Savings Plan continue bring back strong returns month over month. In October, all 15 funds increased over their September numbers. The C and I funds were the top earners, returning 2.34% and 2.13%, respectively in October. The G, F and L income fund were the only funds to garner returns of less than 1%. Year to date, 13 of 15 funds are returning more than 10% with the I fund coming in at just over 28%.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Colorado's attorney general is suing the Trump administration over its decision to move U.S. Space Command headquarters from Colorado Springs to Huntsville, Alabama. Attorney General Phil Weiser filed the lawsuit last week, arguing the president's move is unconstitutional and violates federal law requiring notices and reports to Congress before relocating a major military headquarters. Weiser said President Donald Trump openly admitted the move was meant to punish Colorado for its mail-in voting system. The lawsuit also names Defense Secretary Pete Hegseth, the Department of the Air Force and Air Force Secretary Troy Meink as plaintiffs.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Plans to keep the FBI's new headquarters in the District of Columbia are moving ahead in Congress. Republicans on the Senate Environment and Public Works Committee advanced the Trump administration's proposal to move the FBI to the Ronald Reagan Building just blocks away from the crumbling J. Edgar Hoover Building. The Biden administration planned to relocate the FBI headquarters to Greenbelt, Maryland.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The second-longest government shutdown is projected to put a toll on the U-S economy. The Congressional Budget Office expects the shutdown will take a $7 billion hit to the economy, so far. That sum would climb to $14 billion if it drags on for another month. About 750,000 federal employees are currently furloughed and many others are working without pay. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Federal Retirement Thrift Investment Board is reminding federal employees of their current options for loans. All loans from the Thrift Savings Plan remain in good standing during a government shutdown, even if participants don't make payments on time. The TSP board has also received recent feedback from participants on its loan program, with some calling it a “true lifesaver.” Others say the TSP loan and withdrawal options have relieved at least some of their stress. TSP operations continue as usual during an appropriations lapse, since the TSP board is not funded by Congress.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The government shutdown is putting loans from the Small Business Administration on hold. SBA estimates that $170 million in loans have been paused each day. That adds up to more than $4.5 billion dollars over the length of the shutdown. SBA paid out more than $45 billion in loans to 85,000 small business in fiscal 2025. That's a record high for the agency. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Department of the Air Force is opening up its unused land across five military bases to private companies to build artificial intelligence centers. A request for lease proposals posted last week follows President Donald Trump's executive order to use federally owned land and resources to quickly build AI data centers. In addition, the Air Force said the service “cannot afford to disregard or discount the value of any asset, and must optimize the real and potential value of those assets.” Each project must be valued at more than $500 million and require at least 100 megawatts of power to qualify. Companies can lease property on Air Force bases in Tennessee, California, Arizona, New Jersey and Georgia. The government can purchase services and power from the centers but it's not required to do so. Proposals are due by November 14.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The number of federal employees exiting the government this year continues to grow. The Partnership for Public Service has added thousands more to its running tally of how many feds have left their jobs since January. The latest estimate surpasses 211,000 employees who are either already gone, or who may exit soon. The organization says the increase comes from the layoffs agencies announced earlier this month ... although those are being temporarily blocked. There were also some updated numbers on how many Defense Department personnel have taken a deferred resignation. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The vast majority of employees at the Department of Veterans Affairs keep working during a government shutdown. But VA Secretary Doug Collins says more than 30,000 of the department's employees have been furloughed. That's about double what the VA outlined in its latest contingency plans. Collins says the VA will have to furlough more staff from VA's central office next week if the shutdown continues. He's calling on Democratic lawmakers to pass a stopgap spending bill to end the shutdown. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The current shutdown is taking a toll on air traffic controllers. In response to a recent union survey, 700 employees working in air traffic control jobs detailed stories of financial difficulties, like turning to local food banks, canceling medical treatments and seeking part-time jobs. The Professional Aviation Safety Specialists union, or “PASS,” says those hardships can carry over into the workday. The longer the shutdown goes, the more air traffic controllers feel their anxiety and stress levels rise. The union warns that can be a big distraction on the job. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Hawaii, Alaska and New Mexico are among the states being hit hardest by the partial government shutdown. A new report by WalletHub, a personal finance company, ranked the impact of the shutdown across all 50 states and Washington D.C., across five key metrics, including each state's share of federal jobs to federal contract dollars per capita to national park access. WalletHub found Washington, D.C. is being impacted the most with a score of 76.33 out of 100, as 25% of all jobs are related the government. Hawaii and New Mexico earned scores of 71 each, respectively. Minnesota, Indiana and Iowa are the three states at the bottom of the list, scoring 15 or below out of 100. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

House Judiciary Committee Democrats have launched a new website for federal watchdogs. That comes after the Trump administration pulled funding for the Council on Inspectors General for Integrity and Efficiency. CIGIE had provided website infrastructure services for at least 28 inspectors general offices. The Judiciary committee's website provides report repository and hotline contact information for IG offices that relied on CIGIE's funding. Many of the IG offices have set up temporary websites while Democrats in Congress have pressed the White House to restore CIGIE's funding. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

More resources for federal employees during the shutdown are continuing to pop up. Several credit unions are offering no-fee loans to furloughed federal employees. Local food banks are offering options for those who may need it. And feds who have been laid off this year can also get a $2,000 loan – with no fees and no interest – from the Federal Employees Education and Assistance Fund. The offerings come as hundreds of thousands of federal employees face missed paychecks for the foreseeable future. Civilian feds received a partial paycheck late last week – it will be their last payday until the shutdown ends. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Democrats are demanding that the White House follow a 2019 law to ensure back pay for furloughed employees after the government shutdown. In a letter to the Office of Management and Budget, House and Senate lawmakers wrote that the law is clear: Furloughed employees are owed back pay, just as excepted employees are. The letter comes after OMB questioned whether the law actually guaranteed pay for furloughed feds. OMB's legal opinion, though, quickly received backlash from lawmakers, unions and other employee organizations.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Army's Human Resources Command has developed an internal AI chatbot called “Ask HR” — the chatbot will enter beta testing once the government is funded. The bot has access to Army regulations, Military Personnel Messages and other HR data, which allows soldiers to quickly find information. The new tool is part of a broader effort to create a “digital front door” for human resources, which combines the Army's existing call center and online services to improve the overall soldier experience. Army officials also said they are also exploring the use of generative AI to identify talent more quickly and improve officer retention. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Plaintiffs in a lawsuit challenging the Trump administration's latest mass layoffs will make their case to a federal judge tomorrow. The administration sent RIF notices to more than 4,000 federal employees last week. Government employee unions say reduction-in-force procedures are normally prohibited during a shutdown and that the Trump administration gave unlawful orders to exempt RIF activities. The Supreme Court this summer allowed the Trump administration to proceed with earlier mass layoffs across the federal workforce. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Pentagon is making the reinstatement process smoother for service members who were booted from the military over the COVID vaccine. In a new memo, the under secretary of defense for personnel and readiness said applicants seeking reinstatement now receive special-category VIP treatment. That includes notifying commanders in advance of their arrival, getting priority processing at Military Entrance Processing Stations and an assigned escort to expedite their screening. In addition, the department will proactively review personnel records and discharge characterizations for service members involuntarily separated solely due to COVID-19 vaccine refusal. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The number of federal employees filing retirement claims in September was the lowest all year. Just over 6,300 employees submitted their retirement paperwork to the Office of Personnel Management. At the same time, OPM also processed the fewest number of current claims in September, just over 7,900. Despite the lower number of claims, OPM says it took six days longer, on average, in September than in August to process claims. The current retirement claims backlog is at 23,500, which dropped for the fourth straight month.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The number of so-called TSP millionaires is continuing to go up. As of October 1st, nearly 190,000 participants in the Thrift Savings Plan have accounts totaling over $1 million. That's about 2.6 percent of all TSP accounts across the board. It also means roughly 19,000 more feds have crossed the million-dollar threshold in the last three months. Most TSP millionaires have spent decades investing in their accounts.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Senate Democrats are charging the Department of Government Efficiency is putting federal data at risk at the Social Security Administration, the General Services Administration and the Office of Personnel Management. In a new report, Senator Gary Peters (D-MI), ranking member of the Homeland Security and Governmental Affairs Committee, says staff investigations and whistleblower accounts show how DOGE personnel are working without any accountability to agency leadership, Congressional oversight or the public. For example, Peters says despite an SSA risk assessment warning of an up to a 65% chance of catastrophic breach, the data remains in systems without any verified security controls. Peters called on SSA, GSA and OPM to immediately halt DOGE operations and access to information systems given the risk of a serious data breach.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The White House is warning of the potential for spillover effects into the broader economy because of the government shutdown, now entering its second week. The White House's Council of Economic Advisers says calculations based on the number of federal employees and federal contractors not being paid imply that a month-long shutdown would reduce consumer spending by $30 billion. The CEA says approximately half of which would directly be due to federal employees and contractors not working and half would be due to spillover effects on other sectors. More broadly, CEA says delays in agency processes ranging from small business loans to export licenses approvals to awarding federal contracts also would negatively impact the U.S. economy.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In today's Federal Newscast, federal employee unions are moving against an unprecedented actions during a government shutdownSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In today's Federal Newscast, the Thrift Savings Plan continues its run of month-over-month gains. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In today's Federal Newscast, the Trump administration is facing another lawsuit — this time, for telling agencies to conduct more reductions in force. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In today's Federal Newscast, with the government on the brink of a partial shutdown, one senator is pushing the Trump administration to be more transparent about what agency services will remain open should funding lapse.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In today's Federal Newscast, the White House is officially making AI one of its science and technology priorities. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The White House says the public will have to look at each individual agency to find out their plans for what would happen in a government shutdown. The Office of Management and Budget's webpage which normally publishes shutdown contingency plans remained empty for months. But now, OMB says that agencies' plans will only be available one by one, on each agency's own website. Those contingency plans cover how many federal employees would continue working — with or without pay — during a possible shutdown. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The National Guard has surpassed its recruiting goals for fiscal 2025. The Army and Air National Guard have enlisted nearly 50,000 new members this year, bringing total Guard end strength to more than 433,000. Senior leaders attributed this year's success to initiatives such as the Future Soldier Preparatory Course and the new “Uncommon is Calling” marketing campaign for helping attract new members. Army Col. Timothy Smith also praised recruiters across every state, three territories, and the District of Columbia for helping the Guard meet its recruitment goals.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Agencies are bracing for a potential government shutdown, with less than a week left for Congress to reach a spending agreement. But so far, agencies have not released any public plans for what would happen in a shutdown. Agencies are supposed to release contingency plans, detailing which employees would keep working, and who would be furloughed. Currently, though, the White House's website for listing those plans is blank. The Trump administration removed previous contingency plans that agencies had compiled during a shutdown threat last year.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Army is rolling out a new incentive to keep some of its most experienced technical experts in uniform. A warrant officer retention bonus will offer a “substantial financial incentive” to officers in critical specialties who commit to additional years of service. High-demand fields like cyber operations, aviation maintenance, signal and communications and special operations are identified as priorities for the program. Lt. Col. Angie Chipman, chief of the Army retention division at the Pentagon, said, The Army is addressing its most pressing retention challenges and ensuring its ability to meet future operational demands by focusing on these fields.”See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

There is a push in Congress to expand the use of hazard pay for federal wildland firefighters. Utah Congresswoman Celeste Maloy has introduced a bill attempting to correct what she says is a gap in the benefit. Currently, wildland firefighters receive higher pay rates, called hazard pay, when fighting active fires. But hazard pay doesn't apply to situations where firefighters are conducting prescribed burns or doing training jumps. Maloy says firefighters face similar hazards in those additional situations — but their pay rates don't currently match the risk.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Yesterday's Senate vote confirming nearly 50 of the president's nominees included some big gains for the Army — filling most of that service's senior political leadership posts all at once. Among those confirmed was Michael Obadal as the new under secretary of the Army, the service's number-two civilian leadership position. The en-bloc vote also included confirmations for three Army assistant secretaries: William Gillis as the assistant secretary for energy, installations and environment, Jules Hurst as the assistant secretary for manpower and reserve affairs, and Brent Ingraham as the assistant secretary for acquisition, logistics and technology. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The departments of Interior and Agriculture say they are on track to combine their wildland firefighting forces into a single agency by January 2026. The announcement this week comes after President Trump ordered the two departments to consolidate their wildfire response efforts into a single agency: the U.S. Wildland Fire Service. An employee organization called the Grassroots Wildland Firefighters says the effort is a step in the right direction, but is urging congressional action to make lasting changes for federal firefighters.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Congress is considering exempting some federal employees from losing their union protections. The version of the fiscal 2026 National Defense Authorization Act that cleared the House would let DoD civilian workers keep their collective bargaining rights. The provision in the House's NDAA comes in response to President Trump's broad cancelation of collective bargaining earlier this year. The proposed exemption for DoD civilian employees, however, is not contained in the Senate's version of the NDAA. The American Federation of Government Employees is calling on senators this week to include the same exemption in their companion bill. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A government watchdog found that the Department of Defense's Transportation Command did not have sufficient and comprehensive data about its Global Household Goods contract, which was canceled in June. The Government Accountability Office found that TRANSCOM officials were aware of the contractor's capability constraints, but had limited information and could not verify whether the company could handle the volume of moves. The watchdog also said the Defense Department did not gather or track comprehensive feedback from service members going through military moves, which limited contractor performance assessment. In addition, TRANSCOM did not have full information regarding costs associated with the contract transition.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Nine Senate Democrats are calling on Immigration and Customs Enforcement to halt its use of a mobile facial recognition application. In a letter to ICE Acting Director Todd Lyons, the lawmakers ask for more details on ICE's Mobile Fortify app. The technology reportedly allows ICE to identify individuals they encounter on the streets using multiple federal databases. The Senate lawmakers say ICE should answer questions about whether it's using the app to surveil protestors and whether the agency is integrating commercial data into the technology. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Federal pay caps are contributing to ongoing recruitment and retention challenges in the Defense Department's blue-collar workforce. A new report from the Government Accountability Office has found that multiple DoD installations are struggling to keep employees in the Federal Wage System, due to longstanding pay limitations set by Congress. GAO also pointed to evidence that the pay rates for blue-collar federal employees have deviated from pay rates in the larger labor market, making it even harder for DoD to compete with the private sector. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The House passed its version of the 2026 defense policy bill, which includes a 3.8% pay bump for service members. House Republicans pushed the bill through largely without Democratic support after adding conservative provisions and blocking debates Democrats sought on issues like expanding the use of the military inside the country. House Armed Services Committee Ranking Member Adam Smith, who voted against the bill, said the GOP included “countless partisan amendments” and “silenced debate of critical issues.” The annual legislation also includes sweeping acquisition reforms aimed at changing how the Pentagon does business. The Senate is expected to pass its version of the defense bill later this week. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Pentagon has published the final acquisition rule implementing the Cybersecurity Maturity Model Certification program. The rule, released in yesterday's Federal Register will allow Defense Department procurements to include CMMC assessment requirements. The assessments are intended to ensure defense contractors are following cybersecurity standards for protecting controlled unclassified information. The Pentagon estimates 80,000 defense contractors may be required to obtain a CMMC assessment. Officials plan to phase in the requirements over a three-year period. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.