This is nothing new. Vice ran an article on it in 2019 and they've been trying to change whatever they think is offensive forever.
The apparent "N-word" they're avoiding using is "Negro". And while there are some places unfortunately called Dead Negro [whatever] and one called Runaway Negro Creek here in GA, none of them are likely to still use the word "N*gger" if they ever did in the first place since back in 1963 they already mandated a change.
But since "negro" is Spanish for "black", bet that some names aren't actually offensive and they're being overzealous as hell.
There apparently is a "Wetback Tank" as the article says. I can find no indication that it's a reference to Mexicans in any way. Could be, but can't find anything.
Squaw, on the other hand, is a word made up for more-or-less derogatory use. It's been in use since the 1600s, it's reviled by pretty much every Native American people, and has a tenuous relationship at best to any word for "woman" in any of their languages. It doesn't particularly bother me but I can understand the objection to that one.
Either way, though, fuck off, Feds. If there's a legitimately and universally offensive reason to rename stuff that isn't directly Federal property, it's not up to you to change it and your bill can be used as spare TP.