Federal workers’ compensation is getting an overhaul

The Labor Department said it’s expanding the Federal Employees’ Compensation Act Pharmacy Benefit Program to cover more types of beneficiaries and programs.

  • Federal workers’ compensation is getting an overhaul from the Trump administration. The Labor Department said it’s expanding the Federal Employees’ Compensation Act Pharmacy Benefit Program to cover more types of beneficiaries and compensation programs. That includes claimants under the Black Lung Benefits Act and the Longshore and Harbor Workers’ Compensation Act. Labor Department leadership says the goal is to improve drug pricing transparency, as well as promote cost savings.
    (Expansion of FECA pharmacy benefit program to serve more beneficiaries - Labor Department Office of Workers’ Compensation Program)
  • The Department of Veterans Affairs says it’s stepping up efforts to identify veterans at risk of dying by suicide. In March, 88% of veterans who received VA health care over the past year completed an annual screening for suicide risk. About 96% of veterans flagged as being high-risk received a comprehensive follow-up evaluation and support plan. The department saw more than 125,000 veterans enroll in VA health care this year. More than half of veteran suicides are cases where the veteran was not recently receiving VA medical care.
  • An auditing system that’s meant to address sexual abuse in federal prisons is running into challenges. A new report from the Government Accountability Office finds that although the Bureau of Prisons has a system to try to prevent abuse before it happens, that system doesn’t require auditors to check for ongoing abuse. The Justice Department has agreed to look into GAO’s recommendations to identify ways to improve its auditing system to better respond to incidents.
  • The Trump administration is considering a new executive order on artificial intelligence. White House officials are studying an executive order that would ensure frontier AI models are evaluated for safety and security before they’re released. Speaking on Fox Business Wednesday morning, National Economic Council Director Kevin Hassett compared the approach to how the Food and Drug Administration evaluates medicine. It would also represent a departure from the Trump administration’s hands-off approach to AI technologies. And it would likely increase the workload at the National Institute of Standards and Technology’s Center for AI Standards and Innovation.
  • The Department of Homeland Security is modernizing the electronic health record systems used for immigration detainees. In a procurement preview notice, DHS says it has a requirement for an integrated EHR system to serve both Immigration and Customs Enforcement and Customs and Border Patrol. The department wants a platform that can maintain a single record for detainees across both CBP and ICE custody. DHS plans to release the solicitation for the EHR contract by June 15, with contract award expected in the fourth quarter of fiscal 2026.
  • GSA's push to contract directly with original equipment manufacturers is picking up steam. The General Services Administration signed its first OneGov deal with an OEM and more could be on the way. GSA says its had conversations with at least 50 other OEMs about signing enterprisewide contracts. Contracts with OEMs are phase two of the OneGov strategy, says Laura Stanton, the acting commissioner of the Federal Acquisition Service. GSA's first direct OEM deal was with ID.me, which provides identity verification services. ID.me is offering up to 43% off its schedule price. GSA also created an 11-page OEM industry engagement package explaining a tiered framework for pricing and the statutory terms and conditions the vendor will be expected to meet.
  • More than 50 Native American-owned small businesses are ringing the alarm bells over the Trump administration's campaign to limit the 8(a) program. In a letter to SBA, the Native American Contractors Association and its members say the significant and ongoing delays in the review and approval of 8(a) applications are disproportionately affecting Native-owned small businesses. Data shows SBA hasn't approved any new firms entry into the 8(a) program since August. The companies want SBA to resume approving applications in the statutorily required 90 day time frame and provide information to those companies with pending applications for when to expect a decision.
    (Native-American firms raise alarm bells over 8(a) program delays - Native American Contractors Association)
  • The EPA is producing less scientific research after recent staffing cuts. Figures released by Public Employees for Environmental Responsibility show the EPA produced 275 peer-reviewed studies in 2025, about a 17% decrease compared to the year prior. The EPA reduced its headcount by about 3,000 employees between fiscal 2025 and 2026, according to the latest federal workforce data, roughly a fifth of the agency's total workforce. The Trump administration’s budget request for fiscal 2027 proposes cutting EPA’s funding by more than half and reducing another 200 employees from its total headcount.

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