House and Senate look to eliminate IRS’ Direct File in reconciliation bill
Direct File had nearly 300,000 users during this year’s tax filing season.
Michele Sandiford
- Both House and Senate lawmakers are looking to eliminate the IRS’ free online tax filing platform. The Senate Finance Committee is proposing to axe Direct File as part of its contribution to the budget reconciliation bill. The House passed its version of the so-called Big Beautiful Bill last month, which would also eliminate the Direct File program. Direct File had nearly 300,000 users during this year’s tax filing season and saw higher favorability scores compared to last year’s pilot.
- Senate Democrats are questioning President Donald Trump’s recent firing of the leader of the Nuclear Regulatory Commission. Christopher Hanson had been leading the NRC, an independent agency, until Trump fired him last Friday. Following Hanson’s termination, Democrats argue that Trump’s action overstepped his presidential authority. A President can only fire federal commissioners for inefficiency, neglect of duty or malfeasance in office. But the lawmakers said the White House did not give a reason for the firing when Hanson was terminated. The Democrats also raised concerns about the impacts the firing will have on NRC’s overall mission.
- The Senate has narrowly voted to confirm Rodney Scott as the new commissioner at Customs and Border Protection. The Senate voted 51 to 46 to send Scott through on Wednesday. Scott is a retired Border Patrol agent who served as chief of the Border Patrol during the first Trump administration. He first began his career as a Border Patrol agent in 1992. The Department of Homeland Security said Scott is the first to rise from a GS-5 Border Patrol agent trainee to become commissioner of CBP. He first began his career as a Border Patrol agent in 1992. Trump also nominated General Christopher Mahoney, the assistant commandant of the Marine Corps, to serve as vice chairman of the Joint Chiefs of Staff.
- Unions are pushing back against the State Department’s reorganization plans. The State Department’s reorg plan would lay off about 1,900 of its employees. About 1,600 employees have already retired or voluntarily left the agency. Foreign Service officers currently working in domestic offices facing closure have been told they can’t move into new assignments in other parts of the department domestically or overseas. The American Foreign Service Association said its’ opposed to the department’s plans. The American Federation of Government Employees is also looking to challenge this proposal.
- The Small Business Administration is ending COVID-era rules around office locations for construction companies in its 8(a) program. Starting Oct. 1. 8(a) firms will once again be required to have an actual, physical office within the geographic area in which they are bidding on federal construction contracts. During COVID, SBA suspended the bona fide place of business rule. Along with having a legitimate office that is within their project’s geographical boundary, the companies also must have at least one full-time employee physically present, and ensure that their bona fide place of business is not a portable trailer, temporary unit or virtual address.
- The Homeland Security Department is adding another layer of oversight over its contracts. Just ahead of the busiest time of the year for most agency acquisition shops, DHS Secretary Kristi Noem is requiring her office to review and sign off on all contracts and grant awards over $100,000. In a memo to staff obtained by Federal News Network, Noem said all proposals must include all relevant details, including any mission impact, dollar values, description of the supplies or services, any timeliness issues and a description of the proposed action. Noem also said the program offices should build in a five-day review period. Based on the last three fiscal years’ data, Noem’s office will have to approve more than 5,100 contract actions worth over $100,000 in the fourth quarter of 2025.
- The Defense Department cancelled its multibillion dollar Global Household Goods contract (GHC). In a statement Wednesday night, the Pentagon said it terminated its up-to-$17.9 billion contract with HomeSafe Alliance for cause. Sean Parnell, DoD’s chief spokesman, said the decision was due to HomeSafe’s “demonstrated inability to fulfill their obligations and deliver high quality moves to service members.” DoD’s decision to terminate the contract brings an abrupt end to a years-long effort that was intended to overhaul the management structure of the system that’s used to move service members’ belongings from one duty station to another.
- Details around the Army’s sweeping transformation initiative remain scarce, but officials said they’re ready to explain the plan to Congress. Lawmakers, largely supportive of the transformation initiative, have been putting pressure on the Army to provide more details on the plan that was announced over a month ago. Sen. Chris Coons (D-Del.) pressed Secretary Daniel Driscoll for more details on the program cuts and investment shifts tied to the transformation initiative during the recent Senate Appropriations Committee budget hearing. “The Army must change and modernize how it fights and must take into account significant changes in technology. But bluntly, months after you’ve announced the Army Transformation Initiative, this committee hasn’t received detailed or substantive analysis as to why the Army is planning to cancel or reduce 12 programs of record, consolidate or reduce staffing at 21 commands, or how the investments you’re proposing will significantly enhance battlefield lethality.” Driscoll said they will brief the lawmakers about the plan within the next ten days.
- President Trump has tapped Admiral Daryl Caudle to serve as the next chief of naval operations, nearly four months after Admiral Lisa Franchetti was removed from the position. Caudle currently leads U.S. Fleet Forces Command. His nomination was received by the Senate Armed Services Committee on Tuesday. He will appear before the panel as part of the confirmation process.
- A federal union is raising concerns about the risks of moving too fast to consolidate the government’s wildfire programs. The National Federation of Federal Employees said it agrees with the Trump administration’s broader goals to streamline federal programs on wildland firefighting. But the union is also warning that making changes during wildfire season and without a fully fleshed out plan could be “disastrous” for federal firefighters. The message from the union comes after President Trump ordered the Forest Service and the Interior Department to merge their wildfire programs within the next three months.
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