# Federal Government Roundup: TSP Performance, EEOC Changes, Pentagon Innovations, and More
Federal workers and defense enthusiasts had a busy month as several significant developments unfolded across the government. From investment fund shifts to sweeping workplace policy changes and military innovation initiatives, here’s what you need to know.
## Thrift Savings Plan Takes a Hit in September
The Thrift Savings Plan (TSP) experienced a rough September, with nearly every fund suffering month-over-month declines. The only fund that managed an increase was the G fund, which grew by 0.4% from August. The remaining 15 funds all saw drops, though none exceeded a total decline of 4%. The S Fund recorded the steepest month-over-month loss at 3.66%.
Despite the September slump, the year-to-date picture remains largely positive. Every TSP fund except the F fund is currently in positive territory for the year. The I Fund stands out with the strongest annual growth, posting gains of over 16%.
## Civil Rights Concerns Loom Over Federal Workforce
A coalition of 75 Democratic lawmakers has issued a warning about proposed changes to the federal sector complaint process. The Equal Employment Opportunity Commission (EEOC) is reportedly planning an overhaul that would remove federal employees’ right to a formal hearing and bar class-action complaints — measures aimed at expediting the process.
The lawmakers argue that these changes could undermine the ability of federal workers to challenge workplace discrimination and weaken existing safeguards. In a letter to the EEOC, the group is urging the commission to find a balance between efficiency and fairness in its reforms.
## USDA Reorganization Blocked by Federal Court — Again
The Agriculture Department’s plans for a large-scale reorganization have been dealt another blow. A federal judge has extended a pause on the forced relocations of USDA employees until October 13, giving the court additional time to rule on whether the department can require thousands of workers to either relocate across the country or resign.
The American Federation of Government Employees (AFGE) filed a lawsuit challenging the reorganization, alleging it violates the Administrative Procedure Act and was initiated without congressional approval. A decision on AFGE’s preliminary injunction request is expected in mid-October.
## Pentagon Creates New Office of Religious Affairs
Defense Secretary Pete Hegseth announced the establishment of a new Pentagon office dedicated to improving spiritual life across the U.S. military. In a major address, Hegseth stated that religious life within the armed forces has long been neglected and that spiritual health should be given the same priority as physical health.
The Office of Religious Affairs will report directly to Hegseth, providing military chaplains with greater influence over budgets and facility planning. Officials have been given 60 days to develop a funding plan for next year and 90 days to report on projects requiring financial support.
## Project Meridian Brings Together Defense Innovators
The Pentagon launched Project Meridian earlier this week, a new initiative focused on reimagining the future of defense and warfare. The effort has already held two meetings since its inception. The group is being led by billionaire Elon Musk, Anduril founder Palmer Luckey, and former Republican Speaker of the House Newt Gingrich.
A photograph of the first full board meeting, shared on social media, revealed the participation of members from the Defense Technology and Innovation Board along with other prominent figures in defense technology. Project Meridian has a 120-day mandate to explore what future conflicts might look like and identify what the United States needs to maintain its competitive edge.
## Kevin Rhodes Continues Government Work Under New Title
Kevin Rhodes, the former administrator of the Office of Federal Procurement Policy, did not actually leave government when he stepped down from his position in September. Rhodes is continuing to work as a special government employee, focusing on two critical acquisition reform initiatives: a comprehensive overhaul of the Federal Acquisition Regulation and an update to the regulations governing cost accounting standards.
Multiple sources familiar with the situation confirm that Rhodes is actively participating in meetings and leading these efforts under his new designation. The White House reportedly asked Rhodes to transition to a special government employee role to help shepherd these two initiatives to completion. Former acquisition officials have described the arrangement as unusual and expressed disappointment that someone of Rhodes’s impact chose to step down from his prior role.
## New Leader Appointed for Strategic Preparedness Office
Sean Kaufman has been named the new principal deputy assistant secretary for the Administration for Strategic Preparedness and Response (ASPR), a division within the Department of Health and Human Services. According to an internal email obtained by Federal News Network, Kaufman is President Trump’s pick to ultimately lead the office. He is officially assuming the role this Monday, though his Senate confirmation is still pending. Bloomberg was the first outlet to report the leadership change.
## DISA Moves Combatant Command Migration Work to Leidos
The Defense Information Systems Agency (DISA) is making another attempt to add combatant command network migration work to Leidos’ existing $11 billion Defense Enclave Services contract. A justification document published on Monday states that Leidos was the only company capable of transitioning all combatant commands to the Defense Department Network.
This decision follows a challenge from General Dynamics Information Technology, which argued that DISA should have competed the new work rather than adding it to an existing contract. DISA countered that market research showed no other vendor could provide services at the required scale, magnitude, and speed.
## Navy’s Free Wi-Fi Initiative Nears Completion
The U.S. Navy is close to achieving its goal of providing free, high-speed Wi-Fi to all sailors living in barracks. The internet service is now available in 865 of the Navy’s 962 buildings. The remaining facilities are located in isolated regions where additional base infrastructure must be constructed to support the service. Navy officials expect those locations to receive Wi-Fi connectivity in fiscal 2027.
Providing free internet access is part of the Navy’s broader strategy to improve quality of life for sailors, ensuring they stay connected to family, support networks, and educational resources.
—
## Frequently Asked Questions (FAQ)
**Q: What is the Thrift Savings Plan (TSP)?**
A: The TSP is a retirement savings and investment plan for federal employees and members of the uniformed services. It offers a range of funds with varying risk profiles, similar to a 401(k) in the private sector.
**Q: Why did the S Fund drop the most in September?**
A: The S Fund, which tracks small-capitalization stocks, experienced the largest month-over-month decline of any TSP fund at 3.66%. Market volatility affecting smaller companies likely contributed to the sharper drop compared to other funds.
**Q: What changes is the EEOC proposing for federal employee complaints?**
A: The EEOC is looking to streamline the federal sector complaint process by removing federal employees’ right to a formal hearing and prohibiting class-action complaints. Critics argue these changes could make it harder to address workplace discrimination.
**Q: Why is the USDA reorganization controversial?**
A: The Agriculture Department’s plan to forcibly relocate thousands of employees has drawn legal challenges, with unions arguing the reorganization violates established administrative law and was not approved by Congress.
**Q: What is Project Meridian’s goal?**
A: Project Meridian is a Pentagon initiative with a 120-day mandate to brainstorm future defense challenges and identify what the United States needs to win in potential future conflicts. It brings together leaders from technology, defense, and former government.
**Q: How is the Navy providing Wi-Fi to sailors?**
A: The Navy has been rolling out free, high-speed internet to barracks buildings across its installations, prioritizing facilities in non-isolated areas first, with remaining remote locations expected to be connected by fiscal 2027.
—
## Conclusion
This month has brought a mix of financial shifts, policy debates, and organizational changes across the federal government. From the impact on federal employees’ retirement savings to the evolving landscape of workplace protections and defense innovation, these developments carry significant implications for government workers and the broader public alike. As courts review challenged policies and new offices take shape, the federal workforce and the communities it serves will be watching closely to see how these developments unfold in the months ahead.
Thank you for reading
