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Top Three News Stories:

1. White House Prepares Plan to Expand U.S. AI Abroad and Cut Federal Funds to States With Strict AI Laws

Reuters obtained a draft policy the administration will roll out this week that bars federal AI grants from going to states whose regulations the White House deems “overly restrictive.” The roadmap promotes large‑scale export of American AI, streamlines data‑center permitting, and directs the FCC to review state rules for pre‑emption. It also calls for open‑source “full‑stack” deployments led by Commerce and increased Pentagon use of AI. The initiative marks a sharp shift from the prior administration’s more cautious posture. Reuters

Legal Insight: 

Agencies should expect forthcoming OMB and Commerce guidance before altering grant solicitations; until then, existing awards remain governed by current terms. Federal employees involved in state‑federal partnerships may need to track whether their state’s AI statutes trigger funding limits. Any pre‑emption moves will likely face court tests under the Tenth Amendment, so implementation timelines could slip. Staff developing or procuring AI tools should document compliance with federal privacy and procurement rules, which the draft plan does not waive.

2. Survey: Even Supporters of Deep Agency Cuts Want an Apolitical Civil Service

A Partnership for Public Service poll released July 22 found 83 percent of respondents who back the administration’s workforce reductions still say an expert, non‑political federal workforce is “critical” to the nation. Only 37 percent of the public supports the recent layoffs, and 70 percent oppose politicizing career roles. Analysts say enthusiasm for cuts stems more from budget concerns than a desire to replace career staff with appointees. Federal News Network

Legal Insight:

Civil‑service neutrality is embedded in multiple statutes, including 5 U.S.C. § 2301 and the Hatch Act, which remain in force regardless of survey sentiment. Proposed conversions to new excepted‑service categories such as Schedule G still require OPM approval and congressional notice, and they cannot override anti‑discrimination or whistle‑blower protections. Employees offered conversion should review the SF‑50 carefully; accepting may forfeit most MSPB appeal rights. Unions retain the right to bargain over conversions that affect bargaining‑unit status.

3. VA Has Already Lost 7,500 Front‑Line Employees As It Trims 30,000 Positions by Attrition

New data show the Department of Veterans Affairs is down 7,500 workers in veteran‑facing roles this fiscal year, including nurses, physicians and claims examiners. VA leaders say they can meet care needs without a department‑wide RIF and will rely on retirements and unfilled vacancies to hit the 30,000‑position reduction target by September. Lawmakers and unions doubt critical services can absorb the losses, citing decreased use of recruitment and retention incentives. Federal News Network

Legal Insight:

Because VA is using attrition rather than a formal RIF, separated employees generally won’t receive severance or priority‑placement rights. Those considering early‑out offers should verify how a reduced service length could affect FEHB and annuity calculations. Remaining staff may see workload shifts; changes in duties or performance metrics are negotiable conditions of employment. Managers must still comply with Title 38 staffing requirements for certain healthcare occupations, and failure to maintain mandated ratios can trigger IG or GAO reviews.

Mindful Moment of the Day: 

90-Second Reset       

Before diving into your first email of the day, try a 90-second reset. Sit upright in your chair, let your shoulders soften, and take slow, intentional breaths. Focus on the cool air as it enters your nose, and the warmth as it exits. This short pause isn’t just about calm—it engages your parasympathetic nervous system, reducing cortisol and improving focus. It's a small act with big returns, preparing your mind for a more thoughtful, centered workday.