Six Democrats in the Senators are asking the Government Accountability Office to further investigate whether the Commerce Department broke the law when it dismantled the Minority Business Development Agency or MBDA. Senators Martin Heinrich (D-N.M.), Ben Ray Luján and others say they are concerned that Commerce defied federal court orders when political leaders terminated the funding for at least nine MBDA business centers and sent Reduction in Force (RIF) notices to terminate the last 24 employees still working at the agency. The lawmakers already had asked GAO to look into Commerce's initial actions to shutdown MBDA over the summer.

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Some senior political appointees, including the vice president, will continue to see a long-standing freeze on their salaries. The Office of Personnel Management announced that pay rates will continue to be capped for certain Executive Schedule employees. Political appointees in Schedules C and G, however, are exempted from the pay freeze. Certain higher-paid positions have continued to see their salary capped for more than a decade. For 2026, the pay ceiling sits at about $197,000.

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The Defense Department is bringing in industry experts to help overhaul its acquisition process. Defense Secretary Pete Hegseth said the new Business Operators for National Defense program, or BOND, has already engaged over 100 industry experts, including dozens of former CEOs, COOs and CIOs already advising senior Pentagon officials. “BOND embeds elite private sector patriots, leaders with decades of experience at world class companies such as Apple, Ford, Microsoft and Tesla, directly into our acquisition process," Hegseth said. "Think of the best of the best leaders of our best private sector companies coming and joining the War Department.”

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The IRS pulled the plug on its free, online tax filing platform. Members of the Senate say the agency's partnership with tax filing companies hasn’t stepped up. Senators Elizabeth Warren (D-Mass.) and Angus King (I-Maine) are asking the IRS what it’s doing to promote its Free File program with tax-preparation companies. The program saw a peak of about five million taxpayers in 2004, but has seen a decline in users since then. The number of companies participating in the program has also declined.

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The Space Force has surpassed its fiscal 2026 recruiting goal just five months into the year. The service has already exceeded its recruiting goal by 25% for recruits who have shipped to basic military training or entered the delayed entry program. Despite that progress, service officials warn the current force is too small to meet growing national security demands. Chief Master Sergeant of the Space Force John Bentivegna said while “achieving a force of just over 10,000 uniformed guardians in 2025 was a landmark milestone, it is insufficient for the missions we have been assigned.” Bentivegna also told lawmakers that the service needs to increase its infrastructure and double its size to “effectively fulfill our national mandate.”

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A federal employee union head is stepping down after leading it for more than 14 years. Lee Saunders is retiring as president of the American Federation of State, County and Municipal Employees. Despite the name, it also represents federal employees in the departments of Justice, Transportation, Agriculture and Veterans Affairs as well as the Library of Congress. Saunders will step down in August after the union elects a new president.

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Veterans Affairs is exploring hundreds of potential uses for artificial intelligence. More than half of them would impact its health-care mission. The VA says AI-assisted colonoscopies are leading to better detection of tumors. It also says AI helps mitigate the risk of opioid overdose and suicide among patients. The department says more than 130 use cases are currently being deployed across its operations and that many more are still in development.

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Senator Ron Wyden is pledging to keep his hold on the nominee to lead the Cybersecurity and Infrastructure Security Agency. Wyden says he will continue to object to Sean Plankey’s nomination until CISA releases a 2022 report on security flaws in the U.S. telecommunications system. Wyden previously held up Plankey’s nomination for much of last year over the same issue.

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