Federal Newscast

Public sector retirees impacted by the Windfall Elimination Provision and Government Pension Offset should see their benefits fully updated by November. The majority of affected beneficiaries already began receiving their increased monthly benefit amounts in April. But the Social Security Administration says it's still working through some of the more complex cases. The Social Security Fairness Act, signed into law in early January, eliminated both the WEP and GPO. The two longstanding Social Security provisions had been reducing or eliminating benefits for many public sector annuitants.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Agencies will have to wait until another three months before they can start hiring employees again. The Trump administration has extended its governmentwide hiring freeze until mid-October. The freeze had previously been expected to lift next week. The hiring freeze doesn't apply to military members, or civilian positions dealing with immigration enforcement, national security or public safety. It's the White House's second extension of the freeze since President Trump's order on his first day in office. By the time the freeze lifts, agencies will have been barred from hiring for nine months.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The FBI is being urged to step up its efforts to protect government officials from mobile cyber threats. In a new letter to the bureau, Senator Ron Wyden says its current spyware guidance isn't enough to protect against advanced cyber tools. He pointed to how spyware has been found on the phones of dozens of government employees.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Federal employees retirement savings grew at a healthy rate last month. New data from the Thrift Savings Plan shows all 15 funds saw higher rates of return in June as compared to May. Investors in the C and S funds were among biggest winners, seeing over a 5% rate of return for June. All the Lifecycle funds also posted a higher returns last month with the L 2055, L 2060 and L 2065 all seeing returns over 4.6%. Year to date, the big winner is the I Fund with a return rate of over 18%.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Senate Republicans want to limit the size of the Office of the Director of National Intelligence. A new bill led by Senate Intelligence Committee Chairman Tom Cotton would cap ODNI at 650 full-time staff. ODNI started out the year with roughly 1,800 employees. Director of National Intelligence Tulsi Gabbard says she has already reduced ODNI's staff by roughly 25% since then. Cotton's legislation would deepen the cuts by eliminating several ODNI organizations including the National Counterintelligence and Security Center and the National Intelligence University. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Small Business Administration is launching an investigation into the 8(a) business development program seeking to root out possible fraud. SBA Administrator Kelly Loeffler ordered the full-scale audit after a Department of Justice (DOJ) investigation uncovered a years-long fraud and bribery scheme involving a former federal contracting officer and two 8(a) contractors. SBA's Office of General Contracting and Business Development will lead the audit, starting with reviewing high-dollar ad limited competition contracts. The review will go back 15 years and work with other agencies, which awarded 8(a) contracts. The Justice Department found recently $550 million in contracts were fraudulently steered through bribery and abuse of a U.S. Agency for International Development (USAID) contracting officer, including to one 8(a) contractor who was officially flagged by USAID as lacking “honesty or integrity."See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Senate is moving closer to finalizing the GOP's reconciliation bill. And a few provisions affecting federal employees remain on the table. One proposal that was partially struck down would have made new federal hires choose between at-will employment and a 10% increase in retirement contributions. But even after a decision from the Senate parliamentarian, the provision could still include a 5% across-the-board retirement contribution increase. The National Active and Retired Federal Employees Association is urging lawmakers to remove the remaining federal workforce proposals, which it says will negatively impact employees. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A bipartisan bill to revise the rules for federal workers' compensation cases unanimously advanced out of a House committee this week. The legislation would revise the Federal Employees' Compensation Act to allow physician assistants and nurse practitioners to treat feds in workers' compensation cases. A previous version of the bill passed the House in 2022, but did not clear the Senate. Co-sponsors of the bill say they're hopeful it will pass both chambers this Congress. 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 turning to the private sector to bolster its tech talent. The service has launched a new website to recruit “top-tier, uniquely skilled” technology professionals into the Army Reserve. The effort follows the creation of Detachment 201, a new program where four senior executives from tech giants like Palantir, Meta and OpenAI were commissioned into the Reserve to help the service integrate and scale commercial technology. According to the website, these Detachment 201 officers will “contribute to accelerating Army modernization, evaluating technology adoption and advising on scalable solutions to enhance tactical innovation and lethality.” The website includes a form that tech professionals can fill out to express interest in Army Detachment 201. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Justice Department has arrested a Defense Department employee for removing classified documents from a Missile Defense Agency office in Huntsville, Alabama. Ewa Ciszak made her initial appearance in federal court Monday. Beginning in February, the FBI says Ciszack began taking classified documents from MDA facilities without authorization. A June 18 search warrant turned up multiple secret-level documents at her personal residence and in her vehicle and backpack. Ciszak had been employed at MDA since January 2023. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A top lawmaker is pressing Defense Secretary Pete Hegseth to immediately reverse his decision to gut the Pentagon's independent weapons testing office. In a letter to Hegseth, Democratic Senator Elizabeth Warren is demanding documentation justifying the cuts, the office's current oversight list, and how DoD is adhering to the statutory requirement for the office to be independent and whether the office will continue its cyber assessment program, In May, Hegseth instructed the director of operational test and evaluation office to “immediately eliminate any non-statutory” functions of the office, slashing the office's staff by 74% and its budget by nearly 80%. Warren said cutting this deep into the office can violate the law. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Democratic committee leaders are disputing the Trump administration's plans to shuffle components of the Education Department into the Labor Department. A group of four senators say moving career and technical education programs between agencies is not within the President's authority. The lawmakers reiterated that it's up to Congress to decide whether federal agencies should be rearranged or dismantled. They're demanding that the administration leave Education's programs as-is, since Congress has not approved the transition.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Both House and Senate lawmakers are looking to eliminate the IRS' free online tax filing platform. The Senate Finance Committee is proposing to axe Direct File as part of its contribution to the budget reconciliation bill. The House passed its version of the so-called Big Beautiful Bill last month which would also eliminate the Direct File program. Direct File had nearly 300,000 users during this year's tax filing season and saw higher favorability scores compared to last year's pilot. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Congressional Democrats are sounding the alarm over reports that a federal contractor is helping the Trump administration build a “mega-database” of sensitive government records. Senate Finance Committee Ranking Member Ron Wyden and Congresswoman Alexandria Ocasio-Cortez are leading their colleagues in a letter to the company Palantir. The New York Times reports the company is building a single, searchable database of taxpayer records across multiple agencies. The lawmakers are asking for a full list of Palantir's federal contracts. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Postal Service strikes a deal with another one of its unions. Members of the National Rural Letter Carriers' Association approved a tentative contract that lasts through 2027. About 67% of voting members approved the tentative agreement. Next up, the American Postal Workers Union which votes whether to approve its contract or not next month. Members of another union, the National Association of Letter Carriers voted against a tentative agreement with USPS in January. A third-party arbitrator eventually struck a deal with both parties.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Interior Department and the Forest Service are facing a deadline to consolidate their wildland fire programs. President Trump signed an executive order last week giving the agencies 90 days to combine their two offices into one. The White House says it will make wildland fire prevention and response efforts more efficient. But some federal wildland firefighters question the need for consolidating the programs when a larger response is already needed. The Forest Service lost about 1,400 qualified wildland firefighters over the last several months amid the Trump administration's workforce cuts.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Participants in the Thrift Savings Plan will soon see a few changes to the TSP's Lifecycle, or “L,” Funds. Starting June 30th, the Federal Retirement Thrift Investment Board will add an “L 2075” Fund. That's meant for any current or future federal employees who plan to retire during or after the year 2073. The TSP board will also be rolling over the current “L 2025” Fund into its broader Income Fund. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Civilian agencies have spent nearly 23% less during the first eight months of 2025 as compared to the same time period in 2024. The Department of DOGE Services says that means non-defense spending has been reduced by almost $25 billion. Overall non-defense agencies have obligated over $85 billion in 2025 down from $110 billion at this point last year. Some of the spending reduction comes from the cancellation of contracts, which DOGE says agencies have terminated more than 11,000. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Agriculture Department has cancelled hundreds of contracts under the Trump administration … including one that helped households locate food assistance programs. The nonprofit Hunger Free America says it ran an “information clearinghouse” of food assistance programs for USDA for more than a decade. But it claims in a lawsuit that USDA terminated the contract last month. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Postal Service is falling into pattern raising stamp prices each January and July. But its regulator is considering limits to those price increases. A proposed rule from the Postal Regulatory Commission would cap UPSP to only raising prices once per year. The regulator gave USPS the freedom to set mail prices higher than the rate of inflation in 2020 when the agency was at risk of running out of cash. USPS is planning to set the price of a first-class Forever stamp to 78 cents next month. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A separation health assessment administered to more than 50,000 service members found that about 67 percent of troops screened positive for at least one mental health condition. Post-traumatic stress disorder and depression were among the most common issues identified. A government watchdog found that over 50 percent of service members declined referrals to the DoD's inTransition program that provides mental health resources during transition periods. DoD officials told the Government Accountability Office that many factors may contribute to the high rate of positive screenings among separating service members, including that many intend to file disability claims.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

More federal employees filed retirement papers with OPM in May than in the last three months. OPM says it received more than 15,000 claims last month, driving the backlog up over 21,000. The processing time for these retirement claims remain consistent at 49 days on average in May and 52 days on average for the entire 2025. The increase in applications comes as OPM is requiring agencies to send retirement paperwork only in digital formats by July 15. OPM launched two new tools this week to improve the retirement services process. One is a new platform for agency HR and payroll providers and another to modernize the Electronic Official Personnel Folder (eOPF) platform.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Commerce Department dropped health insurance coverage for some recently fired employees sooner than promised, according to the top Democrat on the House Oversight and Reform Committee. Acting Ranking Member Stephen Lynch says Commerce fired about 800 probationary employees under the Trump administration, and that some of them lost health coverage on April 8, days before they were officially fired. Commerce employees were briefly reinstated under a federal judge's order. But an appeals court allowed the firings to remain in effect. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Donald Trump's permanent pick to run the IRS is one step closer to taking office. The Senate Finance Committee advanced the nomination of former Missouri Congressman Billy Long. Democrats on the committee raised concerns that Long promoted tribal tax credits that don't exist, according to the Treasury Department and IRS. Long told lawmakers that if confirmed he'd help the IRS modernize its legacy IT systems. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Every fund but one in the Thrift Savings Plan saw positive returns last month. 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 not requesting an increase in pay for federal employees in fiscal 2026. President Donald Trump released more details of his budget request for next year late Friday afternoon. The appendix section of the budget proposals also includes provisions to continue the pay freeze for certain career Senior Executive Service members and political appointees. In all, the new budget document details more specific discretionary spending requests for each agency. Unlike the "skinny" budget released in early May, the administration did include funding requests for OPM, Education and independent agencies like CFBP.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The 19 agency inspectors general fired by President Donald Trump had a collective impact of saving the government more than $50 billion in fiscal 2024. New data from Senator Gary Peters (D-Mich.), Ranking member of the Homeland Security and Governmental Affairs Committee, shows the IGs played a key role in investigations and audits that uncovered significant fraud and abuse. Peters highlighted two examples: The Energy Department's IG who halted an illegal semiconductor export scheme, which led to the cancellation of $100 million in grants and the DoD IG who uncovered fraudulent financial practices targeting Gold Star families, leading to a 12-year prison sentence and a $1.4 million penalty. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Democratic lawmakers are criticizing the Trump administration's recent push to pay political appointees more money. In a letter to the Office of Personnel Management, Democrats on the Senate Appropriations Committee called OPM's recent encouragement on the issue an “egregious abuse” of taxpayer dollars. OPM recently recommended that agencies pay their political appointees the maximum salary possible, nearly $200,000. Based on current federal salary caps, Schedule C political appointees can be paid nearly $200,000 per year. They don't always receive the top amount, but OPM recently recommended that agencies pay their political appointees the maximum salary possible. The Democrats are now pressing OPM for more information on the responsibilities and costs of current Schedule C appointees.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Defense Department is taking a closer look at how it supports military families who choose to homeschool their children. In a recent memo, Defense Secretary Pete Hegseth directed the under secretary of defense for personnel and readiness to conduct a departmentwide review of the current support available to homeschooling military families, including the feasibility of providing resources for those students. A recent study from Johns Hopkins University found that around 12% of military families chose to homeschool their children in 2024 — that's double the rate of civilian families.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Probationary employees who were fired from the Department of Homeland Security have been granted class certification on an appeal case with the Merit Systems Protection Board. The DHS employees allege that the agency violated the law when it terminated them earlier this year. They argue that the mass firings at DHS were really an unlawfully conducted reduction in force (RIF). Gilbert Employment Law, which is representing the DHS employees in the MSPB case, called the class certification “heartening news.”See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Defense Manpower Data Center has expanded its online ID card issuance system to include overseas dependents of service members. Since its launch in 2023, the program has eliminated more than 300,000 in-person visits by allowing service members to request their ID cards online. DMDC now wants to improve the system by allowing users to upload updated photos directly into the system. It is exploring ways to extend services to locations without access to military postal services.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Veterans Affairs is giving organizations more resources to prevent veteran suicide. VA is issuing more than $50 million in grants to community-based organizations that provide suicide prevention or emergency clinical services to veterans at risk of suicide. Groups have until the end of September to apply for these grants. Veterans who are experiencing suicidal thoughts can reach the Veterans Crisis Line by dialing 988 and then pressing 1. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Correctional officers at the Federal Bureau of Prisons are using a different approach to urge congressional action. A new billboard campaign led by the American Federation of Government Employees is calling on Congress members to reject President Trump's effort to strip collective bargaining rights. Many bipartisan lawmakers have supported federal correctional officers for a long time. But the union said it's disappointed that lawmakers now appear to be turning their backs on the frontline federal workers. AFGE has rented out a number of billboards across the country urging Congress to reject Trump's executive order canceling union contracts, efforts that would cut benefits for federal correctional officers.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The collective bargaining rights for hundreds of thousands of federal employees remain in limbo after an appeals judge ruled in favor of the Trump administration. President Donald Trump signed an executive order in March ending collective bargaining rights for national security employees. The order expanded who is considered a national security employee to more than three dozen agencies. The appeals court ruled 2-to-1 on technical grounds, finding that the unions don't have the legal right to sue because the Trump administration has said it won't end any collective bargaining agreements while the case is being litigated.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A top House Democrat wants an investigation into the Department of Government Efficiency's access to IRS systems. Oversight and Government Reform Committee Ranking Member Gerry Connolly requested the investigation in a May 15th letter to the Treasury Inspector General for Tax Administration. He raised concerns about DOGE plans to centralize IRS data. Connolly also highlighted potential issues with the IRS' data-sharing agreements with the Department of Homeland Security. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

To reduce leased space costs by 30 percent within the next 18 months, the Defense Department is closely tracking building occupancy to find underutilized spaces. It is also moving more personnel to existing military installations to reduce the number of people working in rented office buildings. Acting Assistant Secretary of Defense for Energy, Installations, and Environment Robert Thompson said the effort is critical to “eliminating waste and duplication” while “maximizing the value of the department's real estate portfolio.” The Defense Department is reducing its leased space costs as it implements a government-wide return-to-office policy requiring thousands of employees to resume in-person work. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Customs and Border Protection is looking to expand its use of facial recognition. In a new request for information, CBP says it's seeking solutions for capturing facial images of occupants in vehicles. The technology would be used at ports of entry to compare biometrics in CBP's Traveler Verification Service. CBP and other Homeland Security agencies have been expanding their use of facial recognition to expedite traveler screening in recent years. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Health and Human Services is reinstating some employees after firing thousands last month. HHS is bringing back about 100 employees at the National Institute for Occupational Safety and Health. The agency researches and makes recommendations to prevent work-related injury, illness, disability, and death. Most of the reinstated employees work in Morgantown, West Virginia. HHS fired about 10,000 employees in April and another 10,000 took voluntary incentives to leave 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 Labor Department is making major cuts to a watchdog office that ensures federal contractors aren't discriminating against their employees. The Office of Federal Contract Compliance Programs laid off about 90% of its staff last week, leaving only about 50 employees nationwide. OFCCP was created in 1965 to protect American workers from race and gender discrimination by federal contractors. Employees who got RIF notices will separate from the agency on June 6.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The House Permanent Select Committee on Intelligence is considering updates to a key cybersecurity law. The Cybersecurity Information Sharing Act of 20-15 expires this September. The intelligence committee last week received briefings from multiple agencies on how the law has worked out so far. The statute incentivizes private industry to share cyber threat data with the government. But Intelligence Committee Chairman Rick Crawford says the law needs to be updated to account for a decade of evolving technology and cyber threats. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Democrats are attempting to secure full collective bargaining rights for federal health care employees. A new bill from Illinois Senator Tammy Duckworth would allow nurses, clinicians and other professionals at the Veterans Health Administration to negotiate with management over their workforce concerns. The bill has been introduced in the past. But this time around, Duckworth says the bill is especially important given the Trump administration's efforts to broadly cancel collective bargaining across agencies.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Lawmakers are calling on the Trump administration to prioritize funding for more recruiting at the Coast Guard. Last year, the Coast Guard exceeded its recruiting goals for the first time since 2017. But the service is still 3,000 members short of its targeted enlisted goal. Lawmakers say the 2026 budget should seek to fill those gaps and return the Coast Guard to its full operational capacity. The Trump administration is seeking increases for the Department of Homeland Security in 2026 . . . but it has yet to release specific details on its proposed Coast Guard budget. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.