Security clearance overhaul's head leader steps down
David M. Cattler, the current director of the Defense Counterintelligence and Security Agency (DCSA), is set to retire on September 30, 2025, after serving for almost 18 months[1][2]. As of July 2025, no successor has been announced to take over the role following his departure.
Meanwhile, the federal workforce is under the spotlight, with an upcoming virtual event, Workforce Reimagined, scheduled for August 26. This event aims to build a federal workforce that is skilled, resilient, and ready to meet evolving mission demands[3].
In other news, the Supreme Court has allowed the Department of Health and Human Services (HHS) to proceed with a portion of its reduction in force plans, resulting in many employees officially separating from the agency. Meanwhile, the Department of Veterans Affairs (VA) is shrinking its IT workforce, with over 1,200 IT employees leaving the agency by the end of the year[4].
To address these challenges, the VA and the Department of Defense (DoD) have 185 active health care sharing agreements in place, allowing for the sharing of facilities, medical staff, and administrative personnel between the two agencies[5]. The DoD's Chief Data and Artificial Intelligence Office has also picked four vendors to provide the military with advanced AI tools[6].
In a related development, the Senate Armed Services Committee's 2026 defense policy bill includes provisions to bolster the Pentagon's cyber posture and artificial intelligence capabilities[7]. The bill also designates the assistant secretary of Defense for cyber policy as the principal advisor to the Defense secretary on cyber issues.
However, long-standing implementation challenges persist in these agreements, and neither agency has a process for evaluating their effectiveness[8]. On a separate note, the bill requires the Defense Department to develop a deterrence strategy against cyberattacks targeting American critical infrastructure.
In a recent settlement, IT contractor Hill Associates agreed to pay $14.7 million to settle allegations of violating the False Claims Act by overbilling agencies for cybersecurity services. The settlement addresses allegations that Hill Associates billed for IT personnel who did not have the required experience or education, and that the company falsely claimed to have passed an evaluation for highly adaptive cybersecurity services[9].
Under four separate contracts each with a $200 million ceiling, the services and defense agencies can award task orders to Anthropic, Google, OpenAI, and xAI[10]. These contracts will enable the agencies to access the latest advancements in artificial intelligence technologies for various projects.
As the federal government continues to adapt to changing demands and challenges, it remains to be seen how these developments will shape the future of federal workforce and technology initiatives.
[1] https://federalnewsnetwork.com/defense-department/2025/07/david-cattler-to-retire-as-director-of-defense-counterintelligence-and-security-agency/ [2] https://www.nextgov.com/employment/2025/07/defense-counterintelligence-security-agencys-cattler-will-step-down-sept-30/446438/ [3] https://www.fedscoop.com/workforce-reimagined-virtual-event-will-focus-on-building-a-federal-workforce-that-s-skilled-resilient-and-ready-to-meet-evolving-mission-demands/ [4] https://www.nextgov.com/employment/2025/07/dod-veterans-affairs-shrinking-it-workforce/446430/ [5] https://www.fiercehealthcare.com/tech/doj-dod-va-extend-health-care-sharing-agreements-through-2025 [6] https://www.nextgov.com/ai/2025/07/dods-chief-data-and-ai-office-picks-four-vendors-provide-military-advanced-ai-tools/446416/ [7] https://www.defensenews.com/congress/2025/07/senate-armed-services-committee-releases-2026-defense-policy-bill-text/ [8] https://www.nextgov.com/employment/2025/07/long-standing-implementation-challenges-persist-health-care-sharing-agreements/446434/ [9] https://www.law360.com/cybersecurity/articles/1513607/hill-associates-to-pay-147m-to-settle-false-claims-act-suit-over-cybersecurity-services [10] https://www.nextgov.com/employment/2025/07/dod-education-department-award-contracts-ai-talent-search/446422/
- David M. Cattler's retirement on September 30, 2025, after 18 months as the director of DCSA, leaves a vacancy in the federal workforce.
- The Federal workforce Reimagined event, scheduled for August 26, aims to equip the federal workforce with necessary skills to meet evolving mission demands.
- The Department of Health and Human Services has initiated a reduction in force plans, resulting in many employees leaving the agency.
- The Department of Veterans Affairs is experiencing a significant IT workforce shrinkage, with over 1,200 IT employees leaving by the end of the year.
- The VA and DoD have 185 active health care sharing agreements in place, facilitating shared facilities, medical staff, and administrative personnel.
- The DoD's Chief Data and Artificial Intelligence Office has selected four vendors to provide the military with advanced AI tools.
- The Senate Armed Services Committee's 2026 defense policy bill includes provisions to fortify the Pentagon’s cyber posture and AI capabilities.
- The bill designates the assistant secretary of Defense for cyber policy as the principal advisor to the Defense secretary on cyber issues.
- Long-standing implementation challenges persist in health care sharing agreements, with neither agency having a process for evaluating their effectiveness.
- The bill requires the Defense Department to develop a deterrence strategy against cyberattacks targeting American critical infrastructure.
- Recently, IT contractor Hill Associates agreed to pay $14.7 million to settle allegations of violating the False Claims Act.
- The settlement addresses allegations that Hill Associates billed for IT personnel without the required experience or education.
- Under four separate contracts with a $200 million ceiling, the services and defense agencies can award task orders to Anthropic, Google, OpenAI, and xAI.
- These contracts will provide agencies with the latest advancements in AI technologies for various projects.
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