Civilian agencies spend 23% less in 2025 than in 2024

Civilian agencies have spent nearly 23% less during the first eight months of 2025 as compared to the same time period in 2024. The U.S. DOGE Service said that means non-defense spending has been reduced by almost $25 billion. Overall non-defense agencies have obligated over $85 billion in 2025, down from $110 billion at this point last year. Some of the spending reduction comes from the cancellation of contracts, which DOGE said agencies have terminated more than 11,000.
The Cybersecurity and Infrastructure Security Agency still doesn’t have a full picture of cyber threats lurking on federal networks. Only five Chief Financial Officer Act agencies have fully adopted CISA’s Persistent Access Capability. That’s according to a new Government Accountability Office report. CISA’s tool allows the agency to support cyber threat hunting across federal networks. But CISA told GAO it needs agencies to buy into adopting its threat hunting capability. CISA said it’s also working on updated guidance to help agencies take full advantage of its Continuous Diagnostics and Mitigation program. The Navy is launching a new initiative to provide non-deployable sailors with opportunities that will keep them in the service longer. The EMPLOY program allows eligible Sailors to fill shore-based roles that would otherwise be vacant. Navy leaders said the program will help retain skilled talent and reduce the number of disability evaluations. EMPLOY tours will last at least 24 months and sailors will be reassessed during each tour to determine if they are fit to return to full duty, should be referred to the Disability Evaluation System, or separate from the service. EMPLOY is a voluntary program. Sailors who decide not to continue service through the program will be referred to the Disability Evaluation System.The IRS is planning to reorganize its IT workforce now that thousands of employees have left the agency. The acting IRS chief information officer said the agency needs to “reset and reassess” in part because more than 2,000 IT employees have separated from the IRS since January. That’s about a quarter of the total IRS IT workforce. It’s not entirely clear how many employees left the agency voluntarily or were laid off under a reduction in force. The acting CIO said the agency can’t formally reorganize its IT shop yet because of the ongoing RIF plans. ]]>

The General Services Administration is taking initial steps to set up a new Office of Centralized Acquisition Services. It’s kicking off this effort by recruiting contracting officers to potentially join the new organization. The Federal Acquisition Service sent out a survey last week to its employees asking a basic set of questions about contracting officers’ backgrounds and the certifications they hold to gauge interest in current 1102s, the federal job series classification for such roles. GSA said OCAS will act as the central hub for acquisition execution, supporting agencies as they transition designated contracts for common goods and services to the agency.As Defense Secretary Pete Hegseth pushes to in-source more expertise to improve financial efficiency, experts warn it is unlikely his recent directives will deliver the desired outcomes. Hegseth recently said the Defense Department has become over-reliant on management consultants and contractors. “We found that we likely have more contractors than we have civilian employees and many of them, those contractors, are making more money than our career senior executive employees,” Hegseth said. While the department has a large cadre of contractors providing services, the question is why does DoD rely so heavily on contractors in the first place? Experts said the department’s reliance on contractors stems from decades-long challenges in hiring and retaining technical talent, and no amount of compliance-driven insourcing will fix that without addressing the root problem: changing the department’s approach to human capital. The Department of Veterans Affairs is eliminating a pay bump for thousands of its HR experts. VA said it’s terminating a Special Salary Rate that gave eligible employees about a 15% pay increase. Recent data shows about 10,000 employees received the Special Salary Rate. The VA approved the Special Salary Rate in 2023 when the department increased health care hiring under the toxic-exposure PACT Act.A top leader is stepping down at the Cybersecurity and Infrastructure Security Agency. CISA Executive Director Bridget Bean, who has been serving as the agency’s acting director since January, is retiring from federal service. Her time in government included stints at CISA, the Federal Emergency Management Agency and the Small Business Administration. Bean’s retirement announcement comes as the Senate has yet to confirm Sean Plankey, President Trump’s nominee to serve as CISA’s permanent director.

Copyright
© 2025 Federal News Network. All rights reserved. This website is not intended for users located within the European Economic Area.