VA terminates union contracts

The VA announced on Wednesday, 6 August 2025, that it is terminating collective bargaining agreements with its five largest unions, representing more than 377,000 employees, as reported by Federal News Network and GovExec. This action follows President Trump’s March executive order invoking a rarely used provision of the 1978 Civil Service Reform Act to exclude a broad range of federal agencies from collective bargaining, citing “national security” grounds, as reported by Federal News Network back in March.

While the administration frames the move as essential to agency performance and security—arguing that unions frustrate VA reforms and protect underperforming employees—unions and bipartisan lawmakers decry it as retaliatory and destabilizing. The VA’s action specifically targeted unions involved in litigation against Trump workforce policies. AFGE, National Nurses United, and others continue challenging enforcement in federal court, arguing retaliation in violation of the First Amendment.

Recent appellate decisions—including the Ninth Circuit’s stay of an injunction against the order—have allowed agencies to proceed with the contract terminations as legal battles continue.