Thursday Morning Federal Newscast

This morning's federal news as heard on WFED:

You would lose your federal health benefits under a proposed amendment to a healthcare reform bill. The provision from Senate Finance Committee Ranking Member Charles Grassley would end the Federal Employees Health Benefits Program. Civil servants could then buy insurance through state-based health exchanges, in the same way everyone else could. The proposal is one of more than 500 amendments the Finance Committee is debating.

House leaders have scheduled a vote today that will stop planned premium increases for Senior Citizens who have Medicare Part B next year. Congressional leaders say older Americans should not have to pay higher Medicare premiums because they are not expected to get a cost-of-living increase from Social Security this year. With no Social Security COLA, the vast majority of Medicare recipients are already exempt from premium increases for Part B, which provides coverage for doctor's visits.

The doors to the Office of Special Counsel are reportedly open again for federal workers facing anti-gay bias, according to the Bay Area Reporter. The alternative paper reports the OSC late last year reinstated a Clinton administration policy accepting "such allegations of discrimination for investigation and possible enforcement." In 2004, Special Counsel Scott Bloch declared that federal law did not protect workers who faced on-the-job discrimination based on their sexual orientation or "status" as gays and lesbians.

The Pentagon reopens competition for a multi-billion dollar project to build new Air Force mid-air refueling planes. Reuters reports the Defense Department plans to publish a draft request for proposals for the contract on Friday. The contract could reach $35-billion dollars. DoD briefs reporters on the solicitation at 4 this afternoon; and we'll bring you the latest tomorrow morning.

Air traffic controllers end a three-year dispute with FAA managers over pay and benefits. They've approved a new union contract that sets new rules for compensation, leave and working conditions. NATCA, the union representing controllers, had been at odds with FAA since 2006. That's when then-FAA Administrator Marion Blakey imposed disputed pay and work rules after she declared contract negotiations had deadlocked.

The FBI is investigating the hanging death of a part-time Census worker near a Kentucky cemetery. Investigators found the body of 51-year-old Bill Sparkman in a remote patch of the Daniel Boone National Forest with the word "fed" scrawled on his chest. Law enforcement is still trying to determine whether the death was a killing or suicide. The Census Bureau has suspended door-to-door interviews in rural Clay County.

Scientists have found something surprising on the Moon they didn't think was there. Water! Data from three spaceships indicate the Moon has molecules of bonded hydrogen and oxygen atoms. Scientists have regarded the Moon as a dry planet for decades. The New York Times reports this could make future human settlements on the Moon possible.

Some Veterans wait more than a year for their disability claims. A recent Inspector General audit showed that last year 11,000 veterans had claims pending for more than a year and the agency has since awarded retroactive payments for about a third of them. The audit says that VA had made progress in reducing handling claims, but that delays still create too much of a financial burden for veterans.

The Obama administration is in no hurry to let the $700 billion financial bailout program expire at year's end. The rescue plan, known as the Troubled Asset Relief Program, helped to pull back the financial sector from near collapse last year. The Treasury Department has the option of extending the program to October 2010, and must report to Congress about their plans by Dec. 31. The Senate Banking Committee will review the program in a hearing today. Treasury officials concede that they will not recover all of the money that has been spent on the program.

More news links

Boeing gets contract to service Air Force One (AP on Businessweek)

Congress challenges bonuses at Veterans Affairs

GAO: Give troubled DoD audit agency more independence (FederalTimes)

CFC expands online tools (FederalTimes)

DOD repurposed IT equipment without scrubbing sensitive info, audit reveals (FCW)

Congress challenges bonuses at Veterans Affairs

DHS considers new structure for EAGLE II (FCW)

IRS continues to pay millions to process paper tax returns (NextGov)

ICANN seeks to quell concerns on the Hill (NextGov)

Feds weigh cell phone ban for bus, truck drivers

CPSC pledges swift probe of Chinese drywall

White House looks to improve No Child Left Behind

USDA to fund conservation effort in 12 states

EXCLUSIVE: Congress flies tattered, neglected flags (WashingtonTimes)