Historic blow to federal unions: appeals court gives Trump administration green light to revoke collective bargaining agreements on grounds of “national security,” and IRS begins severing ties with NTEU

Published On: March 15, 2026 at 6:00 AM
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An exterior view of the Internal Revenue Service (IRS) headquarters in Washington, D.C.

Why should environmental and energy readers care about a federal labor case? Because this one goes well beyond pay disputes and office rules.

A Ninth Circuit panel has cleared the way for President Trump’s Executive Order 14251 to move forward, lifting a lower court injunction that had blocked the administration from canceling collective bargaining coverage across a wide stretch of the federal workforce on national security grounds.

The reach is broad. The order covers the EPA, the Department of Energy except for FERC, and Interior offices tied to land and offshore energy management, alongside Treasury, Justice, Defense and others.

In other words, this is not just a union story. It also touches agencies that shape pollution rules, drilling oversight and parts of the energy system behind the electric bill.

The appeals court did leave one important door open. It rejected the administration’s argument that unions had to use only an administrative path, holding that federal district courts can hear the dispute. But on the immediate question, the panel said the unions had not shown enough to keep the injunction in place while the case moves ahead.

Judge Daniel Bress wrote that the order showed the president’s main concern was union activity interfering with national security, not retaliation for protected speech. The opinion summary says the unions in the case represent roughly 800,000 federal civilian employees. That is a huge slice of the government machine.

Now the real-world effects are speeding up. OPM’s updated guidance told agencies to terminate or modify affected collective bargaining agreements “as soon as possible,” file decertification or clarification petitions, and formally end agreements by notifying the union.

The Internal Revenue Service has already moved in that direction. Reporting that cited an internal agency email said IRS Chief Human Capital Officer Alex Kweskin told employees the agency had terminated its agreement with NTEU, canceled negotiations in progress and started updating personnel records to revoke bargaining unit status.

Government Executive also reported that IRS guidance said employees could no longer choose a union official to represent them in disciplinary or EEO matters.

An exterior view of the Internal Revenue Service (IRS) headquarters in Washington, D.C.
The IRS has begun severing ties with the National Treasury Employees Union (NTEU) following a landmark appeals court ruling favoring the Trump administration.

NTEU says the IRS cannot lawfully do that because the Federal Labor Relations Authority still certifies the union as the exclusive representative and has taken no action to undo that status.

So yes, the legal fight is still alive. But for the most part, the immediate balance of power has shifted toward agencies, including ones that oversee environmental enforcement, public lands and energy security. That is the bigger takeaway here.

A labor ruling in Washington can end up shaping decisions far from the capital, in the offices that help determine how projects get approved, how rules get enforced and how fast government moves when the stakes are high.

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