The Federal Drive with Terry Gerton

Most civilian federal employees will not see a pay raise in 2027. An alternative pay plan from President Trump recommends a nearly governmentwide pay freeze. Exceptions will be carved out, though, to give larger raises to federal law enforcement and military personnel. Here with the latest, Federal News Network’s Drew Friedman.
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The Defense Department’s third message to industry since early May is prompting many contractors to strongly doubt whether Secretary Pete Hegseth’s goal of revitalizing the defense industrial base still is a priority. Deputy Defense Secretary Steve Feinberg’s August 18 memo on cost and pricing is the latest example in the last three months of the Pentagon adding more compliance and complexity to contractors working for the DoD.
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Congress has no shortage of fiscal issues waiting when lawmakers return next week. What may be in shorter supply is the flexibility Congress has traditionally used to put together deals and postpone hard decisions. For a closer look, I'm joined by Loren Duggan, deputy news director at Bloomberg Government.
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Postal operators around the world are testing artificial intelligence in everything from package processing to customer service. A new review from the USPS Inspector General looks at where those efforts are producing measurable results and where the technology remains more promise than practice. Here to walk us through those findings is Rick Schadelbauer, research specialist with the USPS Office of Inspector General.
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NVIDIA has donated an advanced AI computing system to the Naval Postgraduate School through a Cooperative Research and Development Agreement. The new platform gives students and faculty access to computing power that can support both research and operational problem-solving. Here to explain what that means for military education and future defense capability is Capt. Mike Owen, vice provost for warfare studies and leader of the NPS AI Task Force at the Naval Postgraduate School.
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