The U.S. Department of Veterans Affairs (VA) has announced the termination of collective bargaining agreements for most bargaining-unit employees. The decision, made public on August 6, 2025, follows an executive order from President Trump that excludes certain federal agencies from labor-management relations programs.
As a result of the executive order, the VA stopped withholding union dues from most employees’ paychecks on April 25. The VA notified several unions that their contracts with the department have been terminated for most bargaining-unit employees. These unions include the American Federation of Government Employees, AFL-CIO (AFGE); National Association of Government Employees (NAGE); National Federation of Federal Employees (NFFE); National Nurses Organizing Committee/National Nurses United (NNOC/NNU); and the Service Employees International Union (SEIU). Contracts for approximately 4,000 VA police officers, firefighters, or security guards represented by these unions remain in place because those roles are exempt from the executive order.
According to the VA, this action is expected to allow leaders to promote high-performing employees more easily and hold poor performers accountable. It is also intended to improve benefits and services provided to veterans.
The department outlined several reasons for its decision. In 2024, over 1,900 VA bargaining-unit employees reportedly spent more than 750,000 hours working on union activities funded by taxpayers—some earning salaries above $200,000 per year. The VA states that these hours can now be redirected toward serving veterans instead of union duties.
Additionally, more than 187,000 square feet of office and clinical space within VA facilities has been used by union representatives without charge. The department says this has resulted in millions of dollars in lost rent and other expenses related to equipment provided for union use. With the termination of these contracts, officials expect facilities will focus more fully on veteran care rather than providing space and resources to unions.
The VA also asserts that previous labor contracts limited managers’ abilities to hire, promote and reward high-performing staff or discipline poor performers. With these restrictions lifted for most employees, management will have greater flexibility in staffing decisions based on veterans’ needs.
“Too often, unions that represent VA employees fight against the best interests of Veterans while protecting and rewarding bad workers,” said VA Secretary Doug Collins. “We’re making sure VA resources and employees are singularly focused on the job we were sent here to do: providing top-notch care and service to those who wore the uniform.”
In background information released with the announcement, the VA stated that some employee unions have opposed key reforms such as the MISSION Act—which aimed to expand health care options for veterans—and supported efforts to rescind accountability measures designed to address employee misconduct.
