The Department of Veterans Affairs has announced a major reallocation of funding so that, with most union contracts revoked at the department, nearly $45 million can be redirected annually from union-related expenses toward care and services for veterans. The move reflects one of the greatest shifts of resources in recent VA history in emphasizing the principal mission of the agency, which is its services to veterans.
The changes being made
On August 6, 2025, in announcement by VA Secretary Doug Collins, he declared the cancellation of collective bargaining contracts with five leading labor unions. Approximately 375,000 bargaining-unit employees would be affected, leaving only 7,000 bargaining-unit employees. The unions affected by this move include the American Federation of Government Employees (AFGE), the National Association of Government Employees (NAGE), the National Federation of Federal Employees (NFFE), the National Nurses Organizing Committee/National Nurses United (NNOC/NNU), and the Service Employees International Union (SEIU).
The move is a result of an executive order from President Trump in March, exempting certain federal agencies from labor-management relations programs for the sake of national security. However, contracts covering 4,000 VA police officers and firefighters, along with security guards, remain intact as these job categories are not included in the executive order.
Money impact and resource reallocation
The changes within the VA structure are leading to massive cost savings at different levels. By far the largest savings come from the cessation of union work time paid for by taxpayers, which cost $39.75 million in 2024 alone. In that year, 1,961 VA employees spent nearly 750,000 hours doing union-related work instead of their assigned duties serving veterans.
Of those participating in union activities were more than 1,000 employees directly engaged in patient care, such as 6 RNs who together made nearly $1.2 million a year, 5 attorneys making $1.25 million collectively, 4 pharmacists earning over $700,000 combined, one physician’s assistant earning $225,000, and one veterans claims examiner earning $190,000.
Recovered offices and equipment
The VA has also recovered significant physical assets previously provided at no cost to the unions. The agency has reclaimed office space exceeding 180,000 square feet valued at $5.4 million. Among these are the Salem VA Medical Center in Virginia, where union management relinquished control of a 7,500 square foot office space that encompassed an entire wing of a building, and the James H. Quillen VA Medical Center in Tennessee, where 3,800 square feet was returned.
The VA also reclaimed from union representatives more than 2,000 pieces of IT equipment worth more than $600,000. The reclaimed space and equipment will be repurposed to expand administrative and clinical services across various facilities nationwide.
Administrative justification
According to VA Secretary Doug Collins, the changes conformed to the department’s primary mission. “VA will now use more time with Veterans with VA facilities focusing on the treatment of Veterans, and VA can now operate its employees according to the needs of Veterans and national security, not union demands,” Collins said.
According to the department, labor contracts had previously prevented managers from hiring, promoting and rewarding high-performing employees while at the same time not holding poor performers accountable. According to the department, by removing these constraints, better services will be rendered to veterans.
Union response and criticism
Major backlash has emanated from the unions and their representatives that are affected. AFGE National President Everett Kelley called this an “act of retaliation against AFGE members speaking out against the illegal, anti-worker, and anti-veteran policies of this administration”.
“President Trump wages class warfare, continues to wage class warfare against America’s working class,” declared National Nurses United in a blistering statement vowing to “keep fighting and demanding our constitutionally protected rights to collective bargaining”.
According to union representatives, the termination of contracts would endanger care for veterans because it would remove workplace safety nets and might even increase staff turnover. Some critics suggest changes could lead to an exodus of even veteran employees from the VA.
Implementation and future forecast
Resource redirection is already in process; almost all of the employees associated with union work have returned to serving veterans full time in their original jobs. The former office space is currently being converted to serve as clinical and administrative space to expand services at VA facilities throughout the country.
That restructuring is fundamentally changing the way the VA operates; collective bargaining protection would be eliminated for almost all the employees in the organization, with budgetary resources turned toward more direct services to veterans. The long-term effects on employee retention and quality of care for veterans are still to be seen as changes continue to revolutionize VA facilities and services throughout the network.
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