Federal Newscast

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

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.