• The Coast Guard is partially reopening the National Maritime Center. In a notice this week, the Coast Guard said NMC civilian staff have returned to work, as the Department of Homeland Security taps into emergency funds during the partial government shutdown. The NMC will process applications for merchant mariner credentials, medical certificates, and course approvals on a first-in and first-out basis. But Regional Examination Centers will continue to be closed to walk-in customers. Last week, Coast Guard leaders told Congress there’s a growing backlog of 18,000 merchant mariner credentials due to the shutdown.
• The Trump administration is proceeding with its third pick to oversee technology at the Department of Veterans Affairs. President Donald Trump nominated Gary Shatswell, a senior advisory to VA Secretary Doug Collins, to serve as the VA’s chief information officer and assistant secretary for IT. The position requires Senate confirmation. The president has submitted two other names to lead VA IT during this second term, but withdrew both of them. The VA’s deputy secretary is currently leading the department’s tech portfolio on an interim basis.
• House Appropriations Committee lawmakers are supporting governmentwide technology modernization funds at consistent levels for fiscal 2027. The Financial Services and General Government bill is recommending to match what the Federal Citizen Services and IT Oversight and Reform funds received this year in 2027. The Federal Citizen Services Fund would get $70 million, which is $1 million less than what the White House requested. The ITOR fund would get $8 million, which matches the president's request. Surprisingly, the committee is reversing course on the Technology Modernization Fund, allocating $5 million after zeroing it out over the last three years.
• The prospects of a federal pay raise next year are continuing to diminish. That’s after House appropriators made no mention of a civilian pay increase in their 2027 spending legislation this week. That increases the chances federal employees will miss out on a salary boost next year, since the White House also omitted a civilian raise from its budget proposal. There’s still time for potential pay raise alternatives to come from Congress or the White House. Nothing is final until December.
• The nominee to lead the Cybersecurity and Infrastructure Security Agency is withdrawing his name from consideration. Sean Plankey is asking President Trump to withdraw his nomination to be CISA director, saying in a letter to the White House that it’s become clear the Senate won’t confirm him. Plankey was initially nominated last March. His pick had broader support within the cybersecurity community. But his nomination was held up by multiple senators for varying reasons, including over Plankey’s role as a senior advisor within the Coast Guard. CISA has been without a permanent director since January 2025.
• House Republicans are encouraging the Office of Personnel Management to continue working toward consolidating the government’s HR systems. The appropriations committee’s proposed 2027 budget for OPM includes funding for the ongoing modernization initiative. If enacted, the committee’s spending bill would also require OPM to give Congress a report on its HR data migration plans, and its timeline for implementation.
• Agencies may be facing a new grading scale for small business contracting. The Small Business Administration is considering several new factors to evaluate agencies against under its small business scorecard. In a document sent to agencies in March, SBA said it will grade agencies on how they are contracting with veterans, both service-disabled and non-service disabled, how they are awarding more competition 8(a) contracts and how they meet the goals under the new economically disadvantaged category that now includes small disadvantage businesses and veteran-owned firms. Congresswoman Nydia Velázquez, ranking member of the Small Business Committee, and other small business advocates say these changes will reduce small business opportunities.
• Treasury Secretary Scott Bessent is defending a plan for more staffing and spending cuts at the IRS. Bessent told members of the Senate Appropriations Committee that the IRS hit a “home run” this filing season. It had a busier than usual filing season because of changes under the One Big, Beautiful Bill Act. The agency also saw a 27% reduction in its workforce. But the Trump administration is calling for a $1.4 billion cut to the IRS budget next year and reducing its total headcount by about 2,000 employees. Bessent said new tech tools at the IRS will allow it to do more with less.

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