The Daily Scoop Podcast: How Federal IT Shops Are Continuing Work During the Shutdown

Date: October 2, 2025
Host: Billy Mitchell

Episode Overview

This episode dives into how federal IT departments are adapting to the ongoing government shutdown, examining the operational impacts on major agencies and spotlighting the essential IT functions that continue despite furloughs. Additionally, the episode covers a new lawsuit demanding transparency regarding government use of artificial intelligence in regulatory rollbacks, particularly referencing AI's role during the Trump administration.

Key Discussion Points & Insights

1. Shutdown Impacts on Federal IT Shops

• Current State:

  • It's day two of the shutdown, and a quick resolution isn’t expected since the Senate is on leave until at least Friday.
  • "With hundreds of thousands of federal employees furloughed and the White House threatening more layoffs targeting those who have been sent home, federal agencies adjust to the new normal." (01:08)

• Agency-by-Agency IT Approaches:

  • An analysis of nearly two dozen civilian Chief Financial Officer Act agencies shows varied responses:
    • Some agencies are explicitly scaling back IT operations.
    • Others have designated key IT staff as essential to maintain core tech and cybersecurity functions.

• Department of Commerce Example:

  • Only one person in the Office of the CIO is designated to maintain essential functions during the shutdown.
  • There are plans to possibly recall staff intermittently or fully for critical cybersecurity and administrative tasks.
  • "Just one individual is tasked with taking responsibility for shutdown tasks and assurance that the office will continue to work on critical IT functions if the lapse in funding continues for an extended period." (01:44)

• Department of Labor Example:

  • The Labor Department selected a minimal IT staff to oversee core tech operations:
    • These employees now handle tech services, agency applications, website management, and IT security for essential Labor staff.
    • "Those employees are now tasked with managing labor's tech services, applications, and website, in addition to having other IT security responsibilities that support the agency's accepted and exempt staff." (02:20)

• Takeaway:

  • Essential cybersecurity and tech maintenance roles are actively being preserved wherever possible, even with significant workforce reductions.

2. Lawsuit Over AI Transparency in Deregulation

• Background:

  • The nonprofit Democracy Forward filed a lawsuit on Wednesday against several federal agencies (GSA, OPM, OMB, HUD).
  • The suit seeks release of documents on AI’s role in the Trump administration’s deregulation agenda, citing public concerns about AI being used to "weaken existing federal regulations." (02:52)

• Key Allegations:

  • Democracy Forward uncovered, via FOIA documents, evidence suggesting:
    • The GSA played a central role in regulatory overhaul efforts.
    • Internal communication demonstrated significant progress in aligning with Trump-era deregulation directives.
  • "The nonprofit cited an apparent email trail in which a GSA affiliated email informs other agencies of significant progress in reviewing its internal and external policies to ensure consistency with President Donald Trump's directives." (03:08)

• AI Tool “Sweet Rex”:

  • Reports surfaced about “Sweet Rex,” an AI designed by a Department of Government Efficiency affiliate to identify and flag federal regulations that could potentially be eliminated.
  • "An AI tool called Sweet Rex... would use AI to review federal regulations and flag those it thinks can be eliminated." (03:18)

Notable Quotes & Moments

• On Agency IT Operations Under Shutdown:

  • Billy Mitchell: "Some agencies explicitly outlined plans to scale back IT operations amid the shutdown, while others deemed several IT staff members essential for managing technology and cybersecurity infrastructure." (01:31)

• Department of Commerce's Lone IT Lead:

  • Billy Mitchell: "At the Department of Commerce's Office of the CIO, just one individual is tasked with taking responsibility for shutdown tasks..." (01:44)

• AI and Deregulation Lawsuit:

  • Billy Mitchell: "A nonprofit legal group is suing a handful of federal agencies, calling on the federal bodies to release documents related to the use of artificial intelligence to carry out the Trump administration's deregulation agenda." (02:46)

Timestamps for Important Segments

• Shutdown IT Operations Overview: 01:08 – 02:20
• Specific Agency IT Approaches (Commerce, Labor): 01:44 – 02:20
• AI Transparency Lawsuit News: 02:46 – 03:18

Additional Resources & Next Steps

• For a detailed look at specific agency IT contingency plans, listeners are encouraged to read FedScoop’s coverage at fedscoop.com.
• For ongoing updates on federal technology and management headlines, tune in daily or visit the podcast’s website.

Overall:
This episode underscores the strain federal IT divisions face during prolonged funding gaps, revealing the triage mentality as agencies strive to keep vital systems secure and operational. It also shines a light on growing calls for government transparency around the use — and potential abuse — of artificial intelligence in public policy and regulation.