Wednesday federal headlines – June 3, 2015

The Federal Headlines is a daily compilation of the stories you hear discussed on the Federal Drive and In Depth radio shows each day. Our headlines are updated twice per day — once in the morning and once in the afternoon — with the latest news affecting federal employees and contractors.

• The House Appropriations Committee approved its version of a 2016 Defense appropriations bill. Now the bill moves to the floor for a full House vote. It provides $579 billion for defense, including $88 billion for overseas contingency operations. It boosts spending for equipment, operations and maintenance. It allows a 2.3 percent pay raise for service members. The bill is substantially more than the Obama administration wants. The White House releases a policy statement criticizing all of the House Republicans’ spending plans. (Federal News Radio )
• Two top IRS officials disagree over whether computer security upgrades would have prevented the theft of 104,000 taxpayers’ returns. Inspector General J. Russell George told Senators, the IRS has failed to complete 44 security updades his office has recommended. Commissioner John Koskinen said the thieves already had the taxpayers’ credentials necessary to obtain tax information, and that the upgrades wouldn’t have prevented the breach. Both testified before the Senate Finance Committee. Koskinen said the IRS will detail an agreement with tax return prep companies to boost security next week. (Federal News Radio)
• Two senior Veterans Affairs officials in the Philadelphia office are suspended. The move comes after an audit found they charged subordinates money to attend a work-related party featuring psychic readings. In a notice to Congress, the VA said it suspended Lucy Filipov, the assistant director of the Philadelphia regional office and Gary Hodge, who heads the Pension Management Center. Both are on the VA payroll while an internal review determines any disciplinary action. The VA inspector general found Filipov arranged the party. The money went to Hodge’s wife. The IG said the couple used it to pay for a vacation. (Federal News Radio)
• President Obama signed into law changes to the National Security Agency’s surveillance program. His signature came hours after the Senate approves the USA Freedom Act on a vote of 67 to 32. The law eliminates NSA’s bulk phone-records collection program and replaces it with a more restrictive measure to keep the records in phone companies’ hands. The agency also needs court approval to access those records. Senate Majority Leader Mitch McConnell (R-Ky.) offered three amendments to the bill, but none of those passed. (Federal News Radio)
• The Army is preparing for a more sustainable and adaptable force. It releases the Energy Security and Sustainability Strategy. Under Secretary of the Army Brad Carson called the strategy a “turning point.” Instead of focusing on sequestration and other constraints, the strategy looks at how energy, water and land resources can help the Army. It includes ways to optimize resource management. The strategy outlines five goals — inform decisions, optimize use, assure access, build resiliency and drive innovation. This document replaces one from 2009. (Army)
• The long-troubled F-35 Lightning II joint strike fighter receives a note of approval from a high-level Pentagon official. Frank Kendall is the undersecretary for acquisition, technology and logistics. He said program managers are working through a phase known as the technical baseline review. It shows the program is doing better than expected on costs and performance, and only slightly behind its schedule. Kendall said officials are now looking forward to deployment, increased foreign sales, and long-term sustainment. Kendall last week visited military officials in Norway. Defense Minister Marie Eriksen Soreide expressed confidence in the F-35. (DoD)

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