IRS Raises Annual TSP Contribution Limit

The IRS has announced a significant increase in the annual contribution limit for Thrift Savings Plan (TSP) accounts. Starting next year, employees will be able to contribute up to $24,500, reflecting a $1,000 increase compared to 2025.

Catch-Up Contributions for Older Employees

Employees aged 50 or older can further enhance their savings through catch-up contributions. Those between the ages of 60 and 63 can contribute a maximum of $11,250 in addition to the standard limit.

Legislation Impacting Small Business Contracts

Legislation proposed by Sen. Joni Ernst (R-Iowa) aims to pause all no-bid awards under the 8(a) Small Business Program. This bill follows allegations of fraud linked to 8(a) contractors and will delay new sole source contracts until a detailed audit is completed by the Small Business Administration in 2026.

• Over 5,700 8(a) sole source awards are made annually.
• Ernst describes the 8(a) program as “broken” and in need of reform.

Veterans and GI Bill Eligibility

The Department of Veterans Affairs (VA) has reinstated GI Bill education benefits for service members who were discharged due to refusal of the COVID-19 vaccine. This follows the separation of more than 8,000 service members under the Biden administration.

• Over half were given a less-than-honorable discharge, making them initially ineligible for benefits.
• Approximately 900 veterans can now regain eligibility under the Trump administration’s policies.

Federal Employees’ Collective Bargaining Rights

A substantial number of House lawmakers, totaling 218, are pushing for a vote on the Protect America’s Workforce Act. This bipartisan support aims to restore collective bargaining rights for federal employees, which were curtailed under an executive order signed by then-President Donald Trump.

Changes at FEMA

David Richardson, the acting chief of the Federal Emergency Management Agency (FEMA), resigned after six months in the role. His tenure faced challenges, including significant staff turnover and criticism over FEMA’s response to Texas floods. Karen Evans, FEMA Chief of Staff, will assume the administrator role starting December 1st.

Cybersecurity Regulations Under Review

The Federal Communications Commission (FCC) plans to overturn recently imposed cybersecurity regulations aimed at telecommunications providers. These rules were established during the Biden administration in response to the Salt Typhoon cyberattacks, allegedly orchestrated by Chinese-backed hackers.

Defense Department Security Risks

The Government Accountability Office (GAO) has reported that the Defense Department is not adequately addressing security risks arising from publicly accessible digital information. They recommend a thorough review of current security policies to close gaps in risk management.

Critical Technology Areas in Defense

The Defense Department has narrowed its focus to six critical technology areas, as stated by Undersecretary of Defense for Research and Engineering Emil Michael. This adjustment, from a previous 14 areas, aims to sharpen priorities and address urgent needs in areas like artificial intelligence and hypersonic technologies.