The administration says new Medicaid work rules will save money, but first, states will spend a lot figuring out how to make them work

More shakeup at the Treasury Department. The department is preparing for targeted layoffs at an office focused on monitoring the stability of the U.S. financial system. And over at the IRS, its IT shop is back in hiring mode. This comes after it permanently reassigned more than 1,200 IT employees to other parts of the agency. Federal News Network’s Jory Heckman has more. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Federal contractors have been required to comply with the Trump administration’s mandate to remove anything that is considered diversity, equity and inclusion for the past 15 months. But under President Donald Trump’s new executive order, signed last week, vendors face harsher penalties that could include False Claims Act lawsuits as well as possible suspension and debarment. For more on why this new order goes further than previous efforts, Federal News Network executive editor Jason Miller joins me to discuss.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. Strategic Command has awarded a $500 million IDIQ contract to the University of Nebraska’s National Strategic Research Institute to support warfighter‑ready solutions. The award is structured to emphasize speed, flexibility, and direct operational relevance rather than one‑off research projects. Joining me to talk through how these funds will advance STRATCOM's mission is the Director of NSRI, Rick Evans.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The National Institutes of Health funding touches far more than major research institutions. A new analysis maps how those dollars support jobs and businesses nationwide. United for Medical Research’s latest report breaks down the geographic reach of that impact and why timing matters as budgets tighten. Joining us to walk through the findings is Caitlin Leach, President of United for Medical Research.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Today on the Federal Drive with Terry Gerton As uncertainty clouds federal research budgets, a new analysis shows how NIH funding ripples through state and local economies nationwide U.S. Strategic Command has awarded a $500 million IDIQ contract to accelerate delivery of warfighter‑ready solutions as defense needs evolve During COVID, SBA moved fast to deliver disaster loans, but GAO says limited access to IRS tax data made oversight harder and increased program riskSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

When disaster loan programs scale up quickly, data sharing becomes critical. GAO says outdated systems and manual consent requirements limited SBA’s access to IRS tax data during COVID, leaving oversight gaps even as billions went out the door. Joining me to break down why that matters and where progress has been made is Director for Financial Markets and Community Investment at GAO, Courtney LaFountain.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Army is moving thousands of civilian employees into new roles under a sweeping “rebalancing” effort aimed at avoiding layoffs — but workers are required to accept a reassignment within days or risk separation from federal service. Federal News Network’s Anastasia Obis has more.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Army has been talking for many years about the concept of a single IT network. But it’s made real, measurable progress recently. The service started with 42 networks, then reduced the number to 19, and then just five over the last few years. At the same time, the Army is moving toward more software-defined networks. Leo Garciga is the Army’s chief information officer. He talked about those initiatives with Federal News Network’s Jason Miller.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

As the new work‑requirement mandates roll out, states are confronting a costly truth: their eligibility systems weren’t built for this level of verification. Upgrades, contractors and extra staff could push total costs past a billion dollars before a single dollar in federal savings is realized. We get the ground‑level view from AP’s David Lieb.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

As the DHS shutdown highlights stress points in TSA operations, a long‑running federal program that relies on contractors is getting renewed attention just as agencies are also leaning more heavily on industry partners for artificial intelligence in national security. To connect those dots, I'm joined by Stephanie Kostro, President of the Professional Services Council.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.