Federal Newscast

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.

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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. 

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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.  

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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. 

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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.  

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Federal employees, on average, are waiting longer to see their retirement applications processed. New data from the Office of Personnel Management for August shows it takes an average of 70 days to process a claim from a retiring fed. But if retirement claims are coming to OPM in less than 60 days, those cases take, on average, 45 days to complete. At the same time, OPM received more than 9,400 retirement claims last month. OPM's backlog of retirement claims dropped by 2,000 to 24,300. 

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The Energy Department is being sued over its plan to purge old Freedom of Information Act requests. The nonprofit group American Oversight filed the suit in U.S. District Court last week. It challenges DOE’s effort to require individuals to re-confirm their interest in FOIA requests. In an August notice in the Federal Register, DOE announced that those with a FOIA request submitted prior to October 1, 2024, must email the agency within 30 days to keep the request open. American Oversight argues the move violates the law and would open the door for other agencies to sidestep their obligations under FOIA. 

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Federal employees at the Department of Health and Human Services are calling for the resignation of HHS Secretary Robert F. Kennedy, Jr. A letter signed by more than 1,000 HHS workers warns that Kennedy’s actions this year have endangered the nation’s health. Most recently, Kennedy fired the director of the Centers for Disease Control and Prevention. The employees say the secretary has also been spreading inaccurate health information. Earlier this year, HHS laid off thousands of employees in a reduction in force.

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The House Homeland Security Committee wants to reauthorize and reform the Cybersecurity Information Sharing Act of 2015. The law expires at the end of this month. On Wednesday, the committee passed a bill that would extend the law for another 10 years. It would also update the law to account for advances in artificial intelligence and require the Department of Homeland Security to improve its outreach on emerging cyber threats. The bill is advancing in the House, but its path forward in the Senate remains unclear as the law’s expiration nears.

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All 16 funds in the Thrift Savings Plan posted positive results in August. New data from the Federal Thrift Investment Retirement Board shows that the S fund had the largest month over month increase of just over 4%, while the I fund also continued its strong performance. Every fund is positive year-to-date with 11 funds posting double digit returns for 2025. The I fund continues to earn the biggest returns with a 21.5% gain for this year while all the L funds are seeing returns over 10% over the last eight months. 

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