growth[intelligence]

• The Trump Administration took dramatic action to regulate a frontier AI
  model, imposing export controls on Anthropic’s Fable 5 coding model, which
  the company had billed as a “safer” version of Mythos. The Administration
  acted in response to concerns the model could be used by nefarious actors
  to carry out “super-human” cyberattacks, disrupting critical infrastructure
  and global financial systems. Anthropic pulled the model entirely, saying it
  had no way to limit access to the model to only US citizens, and some
  experts argue other competing AI models present similar risks, raising the
  question of why Anthropic was targeted. This comes as a new National
  Security Presidential Memorandum signed this month directs national
  security and intelligence agencies to accelerate their use of AI and pulls back
  some Biden-era AI guardrails as the technology continues to rapidly advance.
• The SBA issued a proposed rule change to the 8(a) program that would
  remove race as a consideration, and rely more on personal narratives in
  making eligibility determinations. The changes would not impact eligibility for
  tribal-owned firms or Alaska Native Corporations. A recent report from a
  Democratic Senator found that contract set-aside dollars to small
  businesses in HUBZone firms are down 31%, firms in the 8(a) program are
  down 29%, women-owned small businesses are down 24% and contracts to
  veteran-owned and service-disabled veteran-owned small firms are down by
  11%. Per the GAO, overall federal procurement spending increased by 5% in
  the same period.
• Congress failed to renew a controversial surveillance provision of the Foreign
  Intelligence Surveillance Act (FISA) amidst controversy over President
  Trump’s selection of Federal Housing Finance Agency executive Bill Pulte to
  serve as interim Director of National Intelligence. The US Attorney for the
  Southern District of New York, Jay Clayton, has been nominated to fill the
  post permanently. Section 702 enables intelligence agencies to conduct
  warrantless overseas wiretaps and lawmakers have said it is a critical source
  for the intelligence community. The authority expired last Friday but the
  program has a built in extension that will allow it to continue operating until
  March of 2027 if Congress does not act to renew it.

Featuring Senior Partner for Global Risk Management Mirriam-Grace MacIntyre:

• The US reached a deal with Iran June 14 that extends the ceasefire
  by 60 days and reopen the Strait of Hormuz to commercial shipping traffic.
  Nuclear issues will be negotiated at a later date. The exact terms of the deal
  were not yet publicly released, and normal vessel traffic had not yet
  resumed in the strait as of this writing. Assuming the deal moves forward, it
  will relieve significant pressure on global supply chains and energy markets,
  but many experts anticipate demand for Middle Eastern oil will never fully
  recover as energy consumers have diversified their sources with renewables
  and oil from other regions.
• President Trump is in France this week for a G7 summit. Participants are set
  to discuss a number of issues including the war in Ukraine, which as of this
  week has lasted longer than World War I. European countries were alarmed
  by several incidents in recent weeks in which Russian military drones entered
  airspace in Lithuania, Estonia, Latvia, Finland and Romania. Also this week,
  the European Parliament approved a US-EU trade deal that was negotiated
  last year. The agreement reduces EU industrial tariffs on US imports, and
  brings US tariffs on EU goods to 15%.
• One proposal President Trump is bringing to the G7 summit would see those
  nations agree to a price “floor” for critical rare earth minerals, to help support
  non-Chinese sources. The plan, which would use an AI model from the US
  War Department to set prices, was met with skepticism from some European
  officials. This comes as China’s exports grew by nearly 20% in May compared
  to 2025, buoyed by demand for rare earths used in AI chipmaking and
  renewable energy infrastructure.

From growth[period]’s Canadian affiliate, GW Group:

• President Trump says he is “not inclined” to renew the US-Mexico-Canada
  trade deal (commonly known as USMCA) at its upcoming review, raising
  uncertainty for North American supply chains. His comments come as
  technical talks continue among the three countries ahead of the scheduled
  review, and suggest Washington could push for significant changes or even
  withdraw from the agreement if its concerns are not addressed. Canadian
  and Mexican officials have reiterated the importance of the agreement for
  continental competitiveness and are preparing for a potentially contentious
  negotiation phase.
• Lockheed Martin has not committed to expanding industrial or economic
  benefits for Canada beyond what is already included in the F-35 fighter jet
  deal, despite the Canadian government’s push for more domestic upside.
  Canadian officials have pressed the company for additional commitments
  on jobs and long-term industrial participation, though Lockheed Martin says
  that Canada already stands to benefit through its role in the broader
  multinational F-35 program. This comes as the Swedish firm Saab competes
  for the same bid, offering 10,000 Canadian jobs through the procurement.
• Canada and Turkey have agreed to restart preliminary talks toward a free
  trade agreement, signaling renewed interest in deepening their economic
  relationship after earlier efforts stalled in the 2010s. Discussions are
  expected to focus on reducing barriers to trade and investment, as well as
  expanding cooperation in sectors such as renewable and nuclear energy.
  This includes potential use of Canadian CANDU nuclear reactor technology
  to support Turkey’s energy diversification goals.
• Louise Arbour has been officially installed as Canada’s 31st Governor
  General. A former Supreme Court justice and UN high commissioner for
  human rights, Arbour used her first address to highlight the importance of
  democratic institutions, the rule of law, and civic engagement at a time of
  global instability. She will serve as the King’s representative in Canada, with
  responsibilities ranging from swearing in new prime ministers and ministers,
  granting royal assent as the final passage to laws, to representing the
  country at official events.

DoW– The House Appropriations committee released its draft defense appropriations bill, which sets funding at $1 trillion, roughly in line with the Pentagon’s budget request. An additional $350 billion was requested in the form of a reconciliation bill to get to the much-publicized “$1.5 trillion” number, but Senate leaders have indicated a reconciliation package for defense is unlikely to be passed this year. According to remarks from Katie Sutton, Assistant Secretary of War for Cyber Policy, the DoW is crafting a new cyber strategy that will set a clear vision for how AI will support the Pentagon’s cyber force. This comes as the Navy recently released an RFI through the CSO process seeking innovative and alternative approaches to cyber workforce augmentation. In a separate announcement, Air Force Maj. Gen. David Sanford has been named as the next director of the Defense Logistics Agency.

GSA – As GSA continues to finalize the Revolutionary FAR Overhaul, agencies are still struggling in some cases to incorporate updated language in procurement documents according to the GAO. Several agencies are dealing with acquisition workforce shortages. GSA also recently released an update on the Enterprise Infrastructure Solutions (EIS) program, noting recent network upgrades completed by MetTel for 11 GSA offices, and by Comcast for 100 sites on behalf of DITCO. The planned replacement for when EIS expires in 2032 is Next Generation Network Infrastructure (NGNI), which is still under development.

HHS – HHS formally announced the sunset of NITAAC’s contract vehicles, CIO-SP3, CIO-SP3 SB, and CIO-CS. The last date to order for all NITAAC vehicles will be October 29, 2026, and any awards issued on that vehicle after June 8, 2026, may not have a period of performance extending beyond December 31, 2028. Already awarded task orders with periods of performance extending beyond that date are not affected. Some NITAAC staff will remain through mid-2027 to complete other close out tasks, at which point NITAAC will cease operating. The government has not identified a specific preferred alternative, but multiple GWACs are available through GSA and other federal agencies. CMS has formally established a new Office of Health Technology and Products (OHTP) that aims to provide enterprise leadership and oversight for CMS healthcare technology modernization, digital products, and platforms supporting CMS-administered programs. The office will operate in coordination with the CMS CIO and existing enterprise IT governance structures. The new organization includes an Open Source Program Group, a Standards & Interoperability Group, a Product Development Group and a group focused on Digital Service at CMS. The CDC is working to handle multiple health crises including a major Ebola outbreak, amidst significant international travel to the US for the World Cup. NIH Director Dr. Jay Bhattacharya is acting CDC director as President Trump’s nominee Dr. Erica Schwartz awaits Senate confirmation.

Commerce – According to recent comments by Commerce CIO Brian Epley, a new objective is reducing the number of websites hosted by the department by up to 50%. The initiative aims to remove “confusing” and “duplicative” websites and consolidate information on a more streamlined number of sites.