• The backlog of federal retirement claims is at the lowest point in 2026 with just over 24,000 in OPM's inventory. New data shows OPM processed more than 17,000 claims last month, of which 14,000 were done digitally. Additionally, OPM says of the 14,000 claims it received in July, 10,500 were provided to them in an electronic format. Despite this progress, processing times inched up to 98 days on average for digital claims and 109 days for all claims. OPM says, on average, paper based claims took 156 days to process.
• The Postal Service's financial picture improved last quarter, but it still has a long way to go. The Postal Service lost less money last quarter as compared to 2025. But USPS remains well in the red. USPS reported a loss of $2.5 billion in the third quarter of fiscal 2026. That is more than $500 million less than it lost in the same quarter of 2025. Postmaster General David Steiner credits the better financial picture to the fact the agency increased operating revenue by $1.1 billion and decreased worker's compensation payouts by $416 million. However that good news was offset by a more than $300 million increase in retirement benefits, another almost $200 million increase in health benefits, and it had to pay out another $129 million in other compensation and benefits.
• The Trump administration has tried to deport nearly 300 veterans and their relatives as part of its crackdown on noncitizens, a Senate investigation found. Dozens of Democratic lawmakers signed onto a bicameral letter calling for the Defense Department and Department of Homeland Security to change policy that says a connection to military service does not automatically exempt noncitizens from immigration enforcement. Immigration and Customs Enforcement data also shows the agency has arrested 16 troops without citizenship since October 2025.
• A federal agency has gotten swept up in a North Korean insider threat campaign. The FBI recently identified a North Korean remote IT staffer working for a federal agency. That’s according to a senior FBI cyber official. The agency did not comment any further on the case. But the incident highlights the yearslong campaign by North Korea to fraudulently place skilled IT staffers in hundreds of major corporations and smaller firms alike. The remote IT workers use stolen and forged identities - made more convincing by artificial intelligence - and rely on third-party collaborators to provide legitimate addresses, bank transactions, and IT credentials.
• DoD is asking industry for help reforming its acquisition rules to encourage commercial firms to do business with the military and make it easier to audit Pentagon programs. Michael Duffey, the department's acquisition boss, and Michael Powers, the Pentagon comptroller, are seeking "common-sense accounting practices" to cut what they view as unnecessary processes. The officials also called for feedback on changes to cost accounting standards, including how much money a company must receive before more stringent cost tracking kicks in.
• The Defense Department is overhauling its military Equal Opportunity and Equal Employment Opportunity programs. Last year, Defense Secretary Pete Hegseth instructed the Pentagon to ensure that complaints are addressed within 30 days and dismissed if they lack credible evidence. Hegseth also directed DoD to centralize the EEO organization. Now, Pentagon Under Secretary of Defense for Personnel and Readiness Anthony Tata is rolling out three pilot programs to implement those reforms, including cutting investigation timelines in half, standardizing EEO processes across the department and expediting cases involving senior leaders.
• The State Department has a new top cyber official. The Senate on Friday confirmed Adam Cassady as ambassador at large for cyberspace and digital policy. Cassady was previously the deputy administrator at the National Telecommunications and Information Administration. He also served as chief of staff to former FCC Commissioner Nathan Simington. Cassady is just the second Senate-confirmed ambassador to lead the Bureau of Cyberspace and Digital Policy, which the Biden administration created in 2022.
• The Marine Corps is inviting service members, civilians, industry and academia to build artificial intelligence tools that the service can deploy immediately across the force. The Marine Corps AI hackathon, scheduled for October 26-30, will bring participants together to develop AI solutions for operational challenges identified by the Fleet Marine Force. Hackers will be able to choose between two tracks: building AI agents on GenAI.mil or developing more advanced AI applications. The event is part of the Marine Corps' broader effort to accelerate the service’s ability to integrate AI into its operations. Applications are due October 9.

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