Federal Newscast

With the shutdown now officially over, the White House isn't waiting to get things back and running. The Office of Management and Budget issued a memorandum instructing federal employees who had been furloughed to return to work today, and to take all necessary steps to ensure that offices open in a prompt and orderly manner. The Government Publishing Office even took to X to direct all teammates they should report to their duty stations and contact supervisors with questions.

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Transgender Air Force and Space Force service members are suing the Trump administration for rescinding pensions that had been previously granted by the Air Force secretary. President Trump issued an executive order in January that banned transgender people from serving in the military. In June, the Air Force approve retirement orders for the Airmen named in the lawsuit, but two months later the service reversed the course, informing Airmen, each with at least 15 years of service, that they would be separated without retirement benefits under the ban. The lawsuit argues that revoking those retirement orders violates Air Force policies and procedures. Transgender service members affected by this will lose an estimated $1 to $2 million over the course of their lifetimes, the lawsuit says. It will also strip them of lifetime access to TRICARE health coverage.

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Open Season has officially begun. Enrollees in the Federal Employees Health Benefits program have between now and December 8th to make changes to their health plan options. The open enrollment period also applies for Postal Service employees, as well as those with dental and vision coverage. For plan year 2026, federal employees’ health insurance premiums are rising by an average of 12%.

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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. 

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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.

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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.

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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%.

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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.

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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.

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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. 

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