Federal Court Blocks VA's Third Attempt to Terminate Union Contract Covering 320,000 Employees

Federal Court Blocks VA's Third Attempt to Terminate Union Contract Covering 320,000 Employees

The high-stakes legal battle between the Department of Veterans Affairs (VA) and the American Federation of Government Employees (AFGE) escalated further in August 2026 as federal courts repeatedly blocked the Trump administration's attempts to dissolve the union's master contract. On Friday, August 7, 2026, U.S. District Judge Melissa DuBose of the District of Rhode Island granted AFGE's motion to enforce her prior preliminary injunction, admonishing the VA for attempting for the third time in a single year to cancel its collective bargaining agreement¹ covering more than 320,000 employees.

The conflict stems from President Trump's March 2025 Executive Order 14251, which banned collective bargaining at the VA and other federal agencies under national security exemptions. The VA first moved to terminate the contract in August 2025, but Judge DuBose issued a preliminary injunction in March 2026 ordering the contract's reinstatement. In response, the VA issued a new termination notice, prompting Judge DuBose to contemplate contempt proceedings and issue an enforcement order in March 2026, which was subsequently upheld by the First Circuit Court of Appeals in May 2026.

In July 2026, the VA notified AFGE that it intended to terminate the master agreement on August 8, 2026—the contract's original expiration date—arguing that the union's purported failure to meet for negotiations within 30 days of a reopening request provided a lawful basis for termination. AFGE countered that because the department requested to reopen negotiations, it triggered a contractual rollover clause that automatically extends the existing agreement until a successor contract is finalized.

In her August 7 order, Judge DuBose rejected the VA's arguments, finding their termination plans to be in direct violation of the court's injunction:

"The defendants’ assertion that the plaintiffs failed to comply with the 30-day clock to begin negotiations and that this purported failure is a lawful basis on which to terminate the agreement, is not well-taken. The exhibits each party provided in support of their positions on this motion are chock full of correspondence between the parties directly related to the defendants’ notice of intent to renegotiate the master CBA (rather than allow it to auto-renew as is on August 8)."

In a statement following the ruling, AFGE National VA Council President Mary Jean Burke celebrated the decision as a critical defense of the civil service:

"Unions that represent federal employees have long been under attack. Why? Because we are the roadblock preventing the privatization of the agencies we swore to protect. No matter how many times we are kicked while we are down, we get back up, brush off the dirt and get right back in the fight because we believe in the VA’s mission to serve our nation’s veterans."

The ruling ensures that the Master CBA and all subsidiary agreements remain in full force and effect while the underlying litigation proceeds, dealing a major blow to the administration's aggressive campaign to dismantle federal-sector labor protections.