Thursday Morning Federal Newsstand

Written by Ruben Gomez and Jane Norris
Edited by Suzanne Kubota

This morning’s federal news as heard on WFED:

The House is again trying to cure the FERS flu. Lawmakers have added language to the Disabled Military Retiree Relief Act of 2009. The provision would let workers under the Federal Employees Retirement System credit unused sick leave to their retirement annuities. A similar provision was attached to the tobacco bill, but it was stripped during House negotiations with the Senate.

Premature: That’s what the White House is calling a legislative ultimatum on the Pentagon’s pay for performance system. Last week a House committee passed language that would force the Defense Department to either prove its National Security Personnel System can be reformed or dismantle it within one year. That language was attached to the 2010 Defense Authorization Bill. But the administration says it’s unecessary right now, since NSPS is already under review by a three-member task force.

More clarity on the way for inherently governmental functions. The Office of Federal Procurement Policy expected to issue guidance next month on what kinds of jobs should be reserved for government and those that can be outsourced to contractors. Federal Computer Week reports the guidelines will focus more on employees than on specific duties. They’re expected to come out in mid-July.

The White House threatens to veto next year’s $680-billion dollar defense authorization bill. The administration opposes money in that bill for additional F-22 jet fighters. Earlier this year, the Pentagon announced plans to cancel the F-22 program, saying the jet is an example of a Cold War-era weapon not fit for 21st century warfare.

Homeland Security spending will increase by 7 percent to $44 billion. A spending measure passed by the House will allow the agency to hire more border patrol agents and patrol the coast of Somalia to fend off pirate attacks. It also requires Homeland Security to conduct threat assessments for terrorist suspects being held in detention in Guantanamo Cuba and include their names on the no-fly list.

Fed Chairman Ben Bernanke today expected to answer claims that he and other government officials pressured Bank of America into a so-called “shotgun wedding” with Merrill Lynch. Bernanke testifies before the House Oversight and Government Reform Committee. Lawmakers there are looking into whether federal officials pushed the Bank’s CEO to keep quiet about finanical problems at Merrill Lynch before the merger happened. Earlier this month, that CEO said his job was threatened after he expressed second thoughts about the merger.

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