In this issue:
Secretary of Defense 
Budget Update 
Veterans Unemployment Rate 
USMC Commandant Surgery 
FRA Closed on MLK Day 

Secretary of Defense
The Department of Defense and the White House became entangled in an unusual personnel scandal when the Secretary of Defense (SecDef), Lloyd Austin, who claimed to be working from home, was actually in the hospital. The SecDef had been hospitalized since January 1 and apparently did not inform any senior officials about his health status. Initially, the Defense Department did not inform the public about the cause of his hospital stay. Later, the Pentagon announced that he underwent surgery before Christmas after being diagnosed with prostate cancer and developed an infection from the surgery. Legislators and other pundits expressed concern that, while various military conflicts are raging around the world, the Defense Department would mislead the public, the White House, and others regarding his health status. As one of the most senior officials in the US government, immediately below the President in the chain of command, the Defense Secretary must always be available to respond at a moment’s notice in the event of a national security threat, such as an incoming nuclear attack.

It is still unclear why President Biden and other key officials were not informed about the surgery for days. The White House has ordered a review of protocols to determine how cabinet officials delegate authority. It directed agencies to notify the Office of Cabinet Affairs and the White House Chief of Staff when a cabinet secretary delegates their duties.
 

Budget Update
Press reports claim that Congressional leaders have reached a top-line spending deal to fund the federal government for the rest of fiscal year 2024, the first step to avoid a partial government shutdown in less than two weeks. Senate and House negotiators are continuing to work on a bipartisan spending deal. Last November, Congress approved a Continuing Resolution, which would set funding deadlines on January 19th for four appropriations bills that include Military Construction and the Department of Veterans Affairs, and February 2nd for eight others that include the Defense Department.

The deal is modeled largely on caps and spending agreements provided in a debt limit deal approved in June 2023, which included an agreement for further budget changes that would allow a plus-up for nondefense dollars for most of 2024. The topline constitutes $1.590 trillion for FY 2024 — the statutory levels of the Fiscal Responsibility Act. That includes $886 billion for defense and $704 billion for nondefense.

In the event of a shutdown, military retirees will continue to be paid and get their TRICARE benefits because funding for these benefits is not required to be appropriated by Congress (mandatory funding). Social Security and Medicare will also continue to operate. Those receiving veterans’ benefits will continue to receive them because the Department of Veterans Affairs has two-year funding and already has funding for FY2024. However, during a government shutdown, active-duty uniform service members will not be paid until Congress passes a budget or Continuing Resolution. That is why the FRA is supporting the “Pay Our Troops Act” (H.R. 5641/S. 2835) sponsored by Rep. Jen Kiggins (Va.) and Sen. Dan Sullivan (Alaska) respectively. This legislation mandates that members of the Armed Forces, both reserve and active duty, will be paid during a shutdown. Also, Coast Guard, DoD civilian employees, and Defense contractors will continue to be paid. Members can weigh in on this issue at: https://www.votervoice.net/FRA/Campaigns/108007/Respond

Veterans Lowest Unemployment Rate in 20 Years
The veteran’s unemployment rate rose slightly in December but still finished 2023 at the lowest monthly average in more than 20 years, according to data released by the Bureau of Labor Statistics (BLS). The Bureau estimated that roughly 261,000 veterans seeking work were unable to find full-time employment last month, an unemployment rate of 3%. That figure was 2.8% in November and had been below 3% nine times since the start of 2023. But the 3% unemployment rate was still the lowest December figure recorded by BLS since 2000, when the agency began publicly releasing data on veteran’s job searches. And veterans’ unemployment remains well below the national rate of 3.7%.

For all of 2023, the monthly veteran’s unemployment rate averaged just under 2.8%, the lowest since at least 2000. According to Department of Labor data, it’s only the third time in the last 24 years that the average monthly rate was below 3%. At the height of the COVID-19 pandemic in 2020, the veteran’s unemployment rate rose to more than 11%, while the national rate rose to almost 15%.

USMC Commandant in Good Condition after Open Heart Surgery
The Marine Commandant, Eric Smith, is in “good condition” after receiving open-heart surgery to fix the condition that caused his cardiac arrest in October, the Marine Corps said. The Commandant has not been on full-duty status since he went into cardiac arrest on October 29. The surgery, to repair a bicuspid aortic valve in his heart, was “successful,” and General Smith is recovering at the hospital, according to a Monday evening statement from the Marine Corps. The Commandant plans to return to full-duty status after his rehabilitation. Currently, Assistant Commandant General Christopher Mahoney continues to perform the duties of commandant. “General Smith and his family are focused on his rehabilitation and appreciate everyone’s continued respect for their privacy ahead of his full recovery,” the statement from the Marine Corps said.

FRA NHQ Closed on MLK Day
The FRA National Headquarters will be closed on Monday, January 15, in observance of Martin Luther King Jr. Day.