Government 23 January 2026 - 6 March 2026

KPMG’s $60 Million Pentagon Blow Triggers Full Exit From U.S. Federal Audits
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KPMG’s $60 Million Pentagon Blow Triggers Full Exit From U.S. Federal Audits

KPMG will exit U.S. federal audit work after losing a $60 million-a-year Pentagon contract, redeploying over 450 staff as remaining federal audit contracts wind down by 2030. The Pentagon, which has failed eight consecutive audits, is under pressure to achieve a clean audit by 2028. KPMG said the move reflects a shift toward advisory services. The Army was its largest federal audit client.
April 30, 2026
ServiceNow stock jumps after new EmployeeWorks, Autonomous Workforce push into government AI
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ServiceNow stock jumps after new EmployeeWorks, Autonomous Workforce push into government AI

ServiceNow launched EmployeeWorks and an Autonomous Workforce suite for public sector clients, introducing its first Level 1 IT service desk AI specialist in controlled release. Shares climbed 5.8% to $120.38 after the announcement. The new tools target government agencies seeking to automate service desks and HR tasks. Broader rollout of the AI specialist is expected in Q2.
March 6, 2026
OPM 1099-R delays leave federal retirees scrambling as lawmakers press Trump administration
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OPM 1099-R delays leave federal retirees scrambling as lawmakers press Trump administration

Federal retirees say they have not received required 1099-R tax forms from the Office of Personnel Management and cannot reach live agents for help, according to Democratic lawmakers. OPM shifted many retirees to digital delivery by default, but some report delays and phone line issues as tax deadlines approach. Lawmakers are seeking data on mailing status, call wait times, and OPM’s plans to improve service.
March 3, 2026
Oracle stock climbs as Air Force, CMS cloud wins spotlight its government push
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Oracle stock climbs as Air Force, CMS cloud wins spotlight its government push

Oracle shares climbed 1.6% to $158.97 by midday Friday, outperforming major indexes after announcing new U.S. government cloud contracts. CEO Clayton M. Magouyrk sold 10,000 shares earlier in the week, according to a regulatory filing. The company secured an $88 million Air Force Cloud One task order and a separate cloud deal with the Centers for Medicare & Medicaid Services.
February 13, 2026
Capgemini puts Capgemini Government Solutions up for sale after ICE row as shares rise
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Capgemini puts Capgemini Government Solutions up for sale after ICE row as shares rise

Capgemini shares rose up to 2% Monday after the company announced plans to sell its U.S. subsidiary, Capgemini Government Solutions, following criticism over a contract with U.S. Immigration and Customs Enforcement. The unit’s December 2025 deal with ICE involved data-driven “skip tracing.” French lawmakers and unions demanded more transparency and broader action. Capgemini said legal limits on oversight prompted the sale.
February 2, 2026
Treasury Drops Booz Allen After Trump Tax Leak, Rattling Federal Contractor Trust
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Treasury Drops Booz Allen After Trump Tax Leak, Rattling Federal Contractor Trust

The U.S. Treasury canceled all contracts with Booz Allen Hamilton, citing failures to protect sensitive IRS data. The department holds 31 contracts with the firm, totaling $4.8 million annually. The move follows the conviction of ex-contractor Charles Littlejohn, who leaked tax records of hundreds of thousands, including Donald Trump, between 2018 and 2020. Booz Allen has not responded to the termination.
January 26, 2026
UK’s £1bn AI data centre thrown into doubt after ministers concede ‘serious error’
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UK’s £1bn AI data centre thrown into doubt after ministers concede ‘serious error’

The UK High Court has allowed a legal challenge to proceed against government approval of a £1 billion, 90-megawatt data centre in Buckinghamshire. Officials admitted the project’s climate safeguards were not secured, agreeing the planning consent should be quashed. The case will move to a full hearing later this year. Developer Greystoke Land maintains the approval was valid.
January 23, 2026