It’s Oct. 1 and Congress has failed to pass appropriations for fiscal year 2026. And you know what that means: the federal government has shut down. For the first time since 2019, also during a Trump administration, federal appropriations have lapsed, resulting in furloughs for hundreds of thousands of federal employees and contractors and the halting of many agency operations. Only “excepted employees” and federal workers who are “exempt” from furlough may perform work until the current lapse in appropriations is over. Though Washington has experienced a number of shutdowns and shutdown threats in recent memory, the politically combative climate surrounding this one is much more amplified. The Trump administration has already threatened to use the shutdown to permanently cut jobs that aren’t aligned with the president’s agenda. And so far, neither party seems willing to budge, with many pundits speculating the lapse could drag on long-term without an agreement between Republicans — who control both houses in Congress and the White House — and Democrats. But one thing is clear: Until that agreement is reached, many of the federal government’s most important missions will operate at less than full capacity, including in areas like cybersecurity. FedScoop will keep you informed as the battle around the shutdown continues.

The Trump administration’s sweeping U.S. military shakeup is expected to gain momentum in the months to come — with more leadership changes, major acquisition updates and possible personnel cuts in the Pentagon’s pipeline, Defense Secretary Pete Hegseth suggested during an unusual gathering of military brass Tuesday. At the “key leaders all-call” meeting with hundreds of top generals and admirals summoned from around the world at Marine Corps Base Quantico, Hegseth and President Donald Trump unveiled a broad docket of new and forthcoming directives meant to reflect their overarching vision for “woke”-ending reforms. Trump said: “We will not be politically correct when it comes to defending American freedom. We will be a fighting and winning machine. We want to fight, we want to win, and we want to fight as little as possible.” Theories swirled about the intent behind this mass gathering after Hegseth hastily ordered it last week. In the portion that was publicly livestreamed, Hegseth outlined his plans for policy shifts — via 10 directives — around physical fitness and grooming standards, mandatory training, oversight processes, records retention rules and more.

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As the federal government races to adopt AI, many agencies are looking to buy and build the same exact solutions. Recognizing this, the General Services Administration earlier this year launched USAi, a platform that offers agencies access to leading commercial AI models that they can deploy in a streamlined manner, eliminating redundancy across government and leading to greater efficiencies at scale. Zach Whitman, chief data scientist and chief AI officer for the GSA, recently joined me for a discussion at the Agentic AI Government Summit and Jamfest in Washington, D.C., to highlight the USAi effort, how it’s progressing, the challenges GSA faces and what’s next.

The Department of Health and Human Services has tapped DOGE affiliate Zachary Terrell to be its chief technology officer, sources told FedScoop. Terrell’s CTO title was confirmed by three officials, who were granted anonymity to be more candid. Taking on the role of CTO comes after his involvement in Department of Government Efficiency work at both HHS and the National Science Foundation, including the cancellation of grants at the science agency. One of those sources told FedScoop that Terrell has been in the technology chief role since the beginning of this month and is still at the NSF as well. While his leadership role is new, Terrell has previously been involved in work at HHS, including as a member of the department’s DOGE team, according to a recent legal filing by the government. Per that document, Terrell was listed as one of the 10 team members given access to at least one sensitive system as part of the DOGE work. Specifically, Terrell was one of five team members who weren’t directly employed by the U.S. DOGE Service — the White House home for the group.

Congress is poised to make yet another run at legislation to reform agency software purchasing practices, with the reintroduction in the House last week of the Strengthening Agency Management and Oversight of Software Assets Act. The SAMOSA Act, which passed the House last December, would require federal agencies to comprehensively assess their software licensing practices, a move aimed at curbing duplicative tech, streamlining future purchases and reducing IT costs. Rep. Nancy Mace, R-S.C., chair of the House Oversight Subcommittee on Cybersecurity, Information Technology, and Government Innovation, said in a press release: “The GAO has found the federal government spends more than $100 billion annually on information technology and cybersecurity, including software licenses. Far too often, taxpayer dollars are wasted on these systems and licenses agencies fail to use.” The SAMOSA Act, Mace goes on to say, “requires agencies to account for existing software assets and consolidate purchases: reducing redundancy, increasing accountability, and saving potentially billions for American taxpayers.”

Also in this episode: Salesforce Global Digital Transformation Executive Nadia Hansen joins SNG host Wyatt Kash in a sponsored podcast discussion on how Agentic AI is reshaping the way government teams work and why agencies need top-level sponsorship, transparent governance and workforce training to realize its potential. This segment was by sponsored by Salesforce.

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The White House Office of Management and Budget is instructing agencies to consider reducing staff for programs that have a lapse in funding in the event of a government shutdown, as tensions rise ahead of the Sept. 30 end to the fiscal year. “With respect to those Federal programs whose funding would lapse and which are otherwise unfunded, such programs are no longer statutorily required to be carried out,” the undated message said. The guidance goes on to say that consistent with applicable law, including a federal reduction in force statute, agencies are directed to use this opportunity to consider RIF notices for employees working in projects, programs or activities that have a funding lapse on Oct.1, don’t have another source of funding, and are not consistent with President Donald Trump’s priorities. The project, program or activity must meet all three criteria, the message said. The message places blame for a possible shutdown squarely on congressional Democrats, calling their demands “insane.” The OMB message explains that the One Big Beautiful Bill Act, legislation passed earlier this year that is at the heart of Trump’s second-term agenda, provided “ample resources to ensure that many core Trump Administration priorities will continue uninterrupted.”

Federal cyber authorities sounded a rare alarm last week, issuing an emergency directive about an ongoing and widespread attack spree involving actively exploited zero-day vulnerabilities affecting Cisco firewalls. Cisco said it began investigating attacks on multiple government agencies linked to the state-sponsored campaign in May. The vendor, which attributes the attacks to the same threat group behind an early 2024 campaign targeting Cisco devices it dubbed “ArcaneDoor,” said the new zero-days were exploited to “implant malware, execute commands, and potentially exfiltrate data from the compromised devices.” Cisco disclosed three vulnerabilities affecting its Adaptive Security Appliances — CVE-2025-20333, CVE-2025-20363 and CVE-2025-20362 — but said “evidence collected strongly indicates CVE-2025-20333 and CVE-2025-20362 were used by the attacker in the current attack campaign.” The Cybersecurity and Infrastructure Security Agency said those two zero-days pose an “unacceptable risk” to federal agencies and require immediate action.

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Clearview AI, the facial recognition company that scraped the internet for images of people’s faces for its database, is building a tool to deal with an emerging problem: AI-generated faces. In comments to FedScoop, Hal Lambert, the company’s co-CEO, said Clearview AI is dealing with the problem by building a new tool for detecting these manipulated images for its customers, many of whom are federal law enforcement agencies. Lambert was named co-CEO of the company earlier this year, after the company board voted to replace its original top executive. Clearview AI has collected billions of images from the internet, including from social media accounts that are set to public, according to the company. Clearview AI has created a database of those images and made it available to a wide range of customers, including Immigration and Customs Enforcement, the government of Ukraine, and law enforcement officials that seek to identify victims of child pornography. Clearview AI has also sold the tool to police departments. The company touts its facial recognition efficacy scores from the National Institute of Standards and Technology. But deepfakes could make building tools like Clearview AI’s more complicated. Right now, deepfakes, or images that are edited or enhanced with artificial intelligence, haven’t been a major problem for the company, Lambert told FedScoop. Still, the company is developing a tool that is supposed to tag images that might be AI-generated, with the goal of having it ready for customers by the end of the year. Lambert did not share further details.

The Trump administration is signaling to industry and allies that it is considering a broader set of actions related to quantum computing, both to improve the nation’s capacity to defend against future quantum-enabled hacks and ensure the United States promotes and maintains global dominance around a key national security technology. The discussions include potentially taking significant executive action, such as one or more executive orders, a national plan similar to the AI Action Plan issued earlier this year, and a possible mandate for federal agencies to move up their timelines for migrating to post-quantum protections, multiple sources told CyberScoop. None of the sources CyberScoop spoke with could provide a definitive timeline for an official rollout, but multiple executives in the quantum computing industry and former national security officials said the White House has signaled serious interest in taking bolder action to promote and shape the development of the technology. Some felt official announcements could come as soon as this week, while others cautioned the process could stretch into the coming months.

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The Office of Personnel Management is rolling out Microsoft Copilot and OpenAI’s ChatGPT to its workforce, following a similar move by the Department of Health and Human Services. According to internal emails obtained by FedScoop, OPM Director Scott Kupor told workers that Microsoft 365’s Copilot Chat became available last Monday and that ChatGPT-5 access would be available “over the next few days” to all workers. Kupor said the move “is part of our broader effort to equip you with AI tools that help you work faster, think bigger, and collaborate better,” calling for OPM to “lead the way in using AI thoughtfully and effectively — starting now.” OPM spokeswoman McLaurine Pinover confirmed one of the emails sent by Kupor about access to the two tools. She said both offerings were the result of deals the General Services Administration has inked with companies to provide services at deeply discounted rates as part of its OneGov initiative. OPM was also able to add Copilot to the agency’s existing subscription at no cost with Microsoft’s new GSA contract in place. Similar to the HHS rollout, Kupor cautioned workers using the tools to still use their best judgment and previewed training from the Office of the Chief Information Officer.

Federal workers will soon have the ability to use Meta’s Llama artificial intelligence models at no cost for the agency under a new deal with the General Services Administration. GSA announced Monday it reached a deal with Meta, which will offer its open-source AI models and tools to federal agencies for free. The agency emphasized that the open-source nature of the Llama models allows agencies to “retain full control over data processing and storage.” Meta’s free offer to the government follows deals from a number of other technology companies selling their products, namely AI products, to agencies for a significantly cheaper price. The Trump administration has repeatedly encouraged agencies to adopt emerging tech to streamline workflows. Mark Zuckerberg, co-founder and CEO of Meta, said the company wants to ensure “all Americans see the benefit of AI through better, more efficient public services.”

A key technology leader at the Department of Veterans Affairs told lawmakers Monday that the agency intends to “capitalize” on artificial intelligence to help overcome its persistent difficulties in providing timely care and maintaining cost-effective operations. At the same time, a federal watchdog warned the same lawmakers that the VA could face challenges before the agency can effectively do so. Lawmakers on the House VA subcommittee on technology modernization pressed Charles Worthington, the VA’s chief data officer and chief technology officer, over the agency’s plans to deploy AI across its dozens of facilities as the federal government increasingly turns to automation technology. Worthington told the subcommittee that all VA employees now have access to a secure, generative AI tool to assist them with their work, claiming that it’s saving them over two hours per week. He also outlined how the agency is utilizing machine learning in agency workflows, as well as in clinical care for earlier disease detection and ambient listening tools that are expected to be rolled out at some facilities later this year. The technology can also be used to identify veterans who may be at high risk of overdose and suicide, Worthington added.

A slew of cybersecurity experts from industry and other organizations sent a letter to lawmakers Monday urging them to move swiftly to confirm Kirsten Davies as Department of Defense chief information officer. The letter, addressed to members of the Senate Armed Services Committee and viewed by DefenseScoop, includes more than 100 signatories. President Donald Trump nominated Davies for the role back in May, but the SASC waited until this week to hold her confirmation hearing, which is scheduled for Thursday. The cybersecurity experts who penned the new letter expressed their “strongest support” for the nominee. In the letter they wrote: “Ms. Davies is a leader we know personally and professionally. Many of us have collaborated with her, witnessed her steady hand in high-stakes situations, and observed her ability to lead with both conviction and humility. She has built a reputation as a world-class cybersecurity executive who can earn trust, build teams, and navigate complexity.”

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The Department of Homeland Security failed to effectively implement a critical retention incentive program for cyber talent, according to a new report from the agency’s inspector general, which found that federal funds meant for the Cybersecurity and Infrastructure Security Agency were used incorrectly. In 2015, the agency implemented the Cyber Incentive program. The goal, the inspector general said, was to provide extra incentives to employees that might otherwise leave the federal government. More than $100 million has been spent on the program in recent years. The program “was designed to help CISA retain mission-critical cybersecurity talent needed to execute its mission,” the report noted, and was meant to consider a series of qualifications to guide who received the retention benefit. The government hoped to keep in-demand technology experts in government. The watchdog wrote that “CISA’s implementation of the program wasted taxpayer funds and invites the risk of attrition of cyber talent, thereby leaving CISA unable to adequately protect the Nation from cyber threats.” Instead of being targeted toward valuable talent likely to transition to the private sector, the payments were disbursed generally, with many ineligible employees receiving tens of thousands of dollars in payment.

The Pentagon’s chief information officer is undertaking yet another reform of the Defense Department’s IT enterprise — this time focusing on streamlining its classified networks to enhance data sharing and interoperability. Katie Arrington, who is performing the duties of CIO, plans to introduce a new program dubbed “Mission Network-as-a-Service” that aims to reduce the number of disparate data fabrics used by combatant commands into a single, unified network. Speaking last week during the Billington Cybersecurity Summit, Arrington said the program will be key to realizing the department’s vision for Combined Joint All-Domain Command and Control, or CJADC2. Broadly speaking, CJADC2 seeks to connect the U.S. military’s sensors and weapons under a single network, enabling rapid data transfer between warfighting systems and domains. The Pentagon also wants to be able to quickly share relevant information with international partners and allies during conflicts, adding another layer of difficulty to realizing the construct.

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Sen. Elizabeth Warren, D-Mass., raised serious national security concerns this week about the Pentagon’s plans to integrate the controversial “Grok” chatbot into U.S. military operations via a recent high-dollar deal with tech billionaire Elon Musk’s company, xAI. Warner d wrote in her letter delivered to Hegseth Wednesday that “the department awarded a $200 million contract under questionable circumstances to incorporate an AI company with a product that provides misinformation and offensive, antisemitic responses into DOD’s operations.” In the correspondence, Warren asks the Pentagon chief to answer dozens of questions about the xAI contract, its full scope of work, ethics and accountability issues and more, by Sept. 24. The Defense Department announced in July that its Chief Digital and AI Office (CDAO) partnered with xAI, Anthropic, Google and OpenAI — through four, separate $200 million agreements — to accelerate the department’s enterprise-wide adoption of some of the most sophisticated and still-emerging commercial algorithms and machine learning capabilities.

Chris Kraft, the Department of Homeland Security’s deputy chief technology officer for artificial intelligence and emerging tech, is now serving as the acting chief information officer of the U.S. Secret Service. Kraft, who’s focused primarily on AI in his DHS role, replaces Kevin Nally, who recently left government for a position in the private sector. Kraft’s new position was not confirmed by spokespeople for the U.S. Secret Service, but he acknowledged the role on LinkedIn. Due to its mission, the Secret Service is quieter than other agencies on its technology portfolio, but the agency uses a variety of platforms and faces serious technology challenges. After the assassination attempt on President Donald Trump in Pennsylvania in July 2024, FedScoop documented a series of tools at the component’s disposal, including commercial telemetry data and Protective Threat Management System.

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Senate Commerce Committee Chairman Ted Cruz said he would introduce legislation to establish AI sandboxes to allow companies “room to breathe” without running up against regulations. Cruz announced that proposal as well as a legislative framework for AI policy ahead of a Wednesday hearing before the Subcommittee on Science, Manufacturing, and Competitiveness on the administration’s recent AI Action Plan. The concept of regulatory sandboxes were among the more than 90 policy recommendations outlined in that document. Cruz said during the hearing: “Under the Sandbox Act, an AI user developer can identify obstructive regulations and request a waiver or a modification, which the government may grant for two years via a written agreement that must include a participant’s responsibility to mitigate health or consumer risks,” adding that “a regulatory sandbox is not a free pass. People creating or using AI still have to follow the same laws as everyone else.”

Drew Myklegard is stepping down from his role as deputy federal CIO after nearly four years, FedScoop has learned. Two sources with knowledge of the matter said Myklegard told colleagues he’s taking a role in the private sector and that his last day will be Sept. 22. A holdover from the Biden administration, Myklegard was appointed to the deputy federal CIO role in early 2022, after a more than eight-year stint in supporting IT operations at the Department of Veterans Affairs. During his time in the Office of the Federal CIO, he championed a number of key governmentwide technology modernization initiatives, including rolling out a new policy reforming federal cloud security authorizations under FedRAMP and guidance on how agencies acquire and inventory AI tools, among others. On Monday, Myklegard was recognized with a FedScoop 50 award in the Golden Gov: Federal Executive of the Year category.

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The Department of Health and Human Services has made ChatGPT available to all of its employees effective immediately, according to a Tuesday departmentwide email obtained by FedScoop. In that message, HHS Deputy Secretary Jim O’Neill said the rollout of the generative AI platform follows a directive from President Donald Trump’s AI Action Plan for agencies to ensure that workers who could benefit from the technology have access to it. “This tool can help us promote rigorous science, radical transparency, and robust good health,” O’Neill said. “As Secretary Kennedy said, ‘The AI revolution has arrived.’” O’Neill provided workers with instructions on how to log on to use the tool, as well as some warnings about how to treat outputs. He told workers to “be skeptical of everything you read, watch for potential bias, and treat answers as suggestions,” and directed them to weigh original sources and counterarguments prior to making a major decision.

The General Services Administration has created a new office within the Federal Acquisition Service focused on streamlining the agency’s procurement of common goods and services, a GSA spokesperson confirmed Tuesday. Acting GSA Administrator Michael Rigas recently signed the order establishing the Office of Centralized Acquisition Services (OCAS), the spokesperson said, describing it as a “centralized, enterprise-wide approach.” “By leveraging one federal wallet, GSA will deliver significant savings to the taxpayer, greater efficiencies, and reduced duplication, enabling agencies to focus on their core missions,” the spokesperson said in a written statement. GSA senior executive Thomas Meiron will serve as the office’s assistant commissioner, the GSA said. Meiron has been with the GSA for over three decades, according to his LinkedIn profile. He most recently served as the acting assistant commissioner for the agency’s Office of Customer and Stakeholder Engagement. The move directly supports President Donald Trump’s executive order, signed in March, to consolidate federal procurement in the GSA.

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