Federal Newscast

June was not a good month for your money in the Thrift Savings Plan. Fifteen of 16 funds saw month-over-month declines, including the S Fund which dropped more than 4% over the last 30 days. Of the 15 funds that dropped in July, the good news is 12 of them saw declines of less than 1%. The G Fund was the only account to come in positive last month with a growth of just under 0.4%. For the year, 15 of 16 funds are growing at a healthy rate with nine earning double digit returns.

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The Army is overhauling how it treats discrimination and harassment complaints. Beginning later this year, the service will no longer allow soldiers to anonymously file allegations of discrimination or harassment with military equal opportunity offices. Instead, EO offices can process claims while keeping soldiers' personal information confidential. Troops who opt to file a confidential claim will not be required to notify their command or initiate a complaint that could lead to an investigation. Commanders may still act on anonymous allegations that warrant further review.

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The Education Department transferred another 64 employees from K-12, special education, higher education and career, technical and adult education programs to other agencies. The American Federation of Government Employees Local 252, which represents Education employees, is denouncing the decision, calling it illegal and part of the administration's effort to dismantle the department. AFGE says Education transferred 10 Native education workers from multiple offices to the Department of the Interior. AFGE says two postsecondary education employees are going to the Department of State and another 52 workers in the Office of Elementary and Secondary Education and Office of Postsecondary Education are headed to the Labor Department. 

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The Senate's version of the continuing resolution released last week not only keeps the government open through December 11 but would prohibit OMB from implementing the rewrite of the federal grants regulations. A provision in the CR agreed to by both Republicans and Democrats would pause the new regulations until at least December 11. In addition to the grants provision, the CR also would extend the Technology Modernization Fund for another 10 weeks. Senator Susan Collins, the chairwoman of the Appropriations Committee, says the CR also avoids any "poison pills" that could lead to a government shutdown. The House passed its version of the CR on July 21. 

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The Army is offering certain helicopter pilots six-figure bonuses to stay in uniform, hoping to retain active-duty warrant officers who are mid-career or approaching retirement eligibility. Bonuses range from around $75,000 over three years for aviators with 12 to 14 years of service, to nearly $210,000 over six years for those with at least 18 years of service. The 2026 program aims to convince at least one in four eligible soldiers to stay, with a particular focus on instructor pilots and maintenance test pilots.

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Two former Office of Personnel Management directors are urging the reversal of a decision that could broadly impact federal job protections. Their brief to a federal appeals court comes ahead of a full bench hearing slated for this fall. The hearing will reconsider a Merit Systems Protection Board ruling that allowed the president to fire some civil servants, claiming constitutional authority. The two former OPM directors warn that upholding MSPB’s decision will threaten the integrity and expertise of the career federal workforce. 

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The Navy is turning to industry for ideas to help address temporary housing shortages impacting thousands of sailors nationwide. The service has issued a request for information seeking solutions to provide temporary unaccompanied housing while the Navy renovates its aging barracks. The Navy is asking companies to propose a range of options, including trailer or RV housing, leased apartments, extended hotel stays or houseboats. The Navy estimates it will need approximately 4,200 temporary beds to house displaced sailors. 

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A dozen Senate Democrats are pressing the Pentagon for a full accounting of U.S. troops who have been killed or injured in connection with the Iran War. In a letter to Defense Secretary Pete Hegseth and other senior defense leaders, members of the Senate Armed Services Committee criticized the Defense Department for appearing to leave nearly 100 troops who were wounded in action out of the Pentagon's monthly statistics for July. The Pentagon's public casualty count for Operation Epic Fury also fell from 18 to 14 deaths last week. A response is due Thursday.

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The National Guard is moving thousands of Guardsmen mobilized to Washington, D.C., from hotels into apartments. The National Guard Bureau has awarded a $292 million contract to Placemakr to provide up to 2,000 apartment-style units for troops supporting Joint Task Force–District of Columbia. The housing contract is the largest interagency lodging acquisition in National Guard history that will “provide a long-term housing solution to improve troop readiness.” The National Guard troops will be deployed in D.C. until January 2029. 

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The House has cleared a bill to correct pension payments for close 8,000 federal retirees. The “Pensions for Retired Uniformed Servicemembers Act” comes after feds from the National Oceanic and Atmospheric Administration and the Public Health Service missed payments during the 43-day shutdown last fall, due to an unintentional loophole. Although the bipartisan legislation to close that loophole has now passed the House, it has not yet been introduced in the Senate. 

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