Federal Labor Battles Return to Center Stage as President Trump Marks One Year into Second Term

January 20 marks the one-year anniversary of the start of President Trump’s second term in office, a year defined by sweeping changes to the federal workforce and renewed battles over labor rights.

More than 300,000 federal employees left government service in 2025 through retirement, deferred resignation, layoffs, and other departures. Beyond the raw numbers, the departures reflected a fundamental shift in how the federal workforce operates.

The administration moved to prioritize merit-based hiring, stricter employee accountability, and new training programs aligned with its policy agenda. It also created a new category of federal employment called Schedule Policy/Career (the revamped Schedule F from the first Trump Administration) designed to make it easier to remove career civil servants.

As the administration enters its second year, many of the same disputes remain unresolved, particularly over union representation. 

Court Fight Over Collective Bargaining Rights

President Trump moved to terminate collective bargaining rights for roughly two-thirds of the federal workforce via two executive orders, citing national security concerns. That effort is once again in front of the courts and Congress. 

In the courtroom, the American Federation of Government Employees (AFGE) was granted a new hearing before the Ninth Circuit Court of Appeals in San Francisco. In that hearing, AFGE argued for a reinstatement of a lower court’s ruling blocking the termination of collective bargaining rights. 

That ruling was initially stayed by the Ninth Circuit, which found that the lower court did not adequately consider whether the president would have taken the same action against labor organizations absent their various legal challenges against the president’s personnel policies. However, AFGE insists it did. 

A decision is pending. 

Rally on Capitol Hill

Meanwhile, union advocates and other supporters rallied in front of the Capitol to urge the Senate to pass the Protect America’s Workforce Act (H.R. 2550), after it passed the House. 

The legislation would restore collective bargaining rights for the two-thirds of the federal workforce affected by the president’s executive orders. It advanced after several Republicans joined Democrats in supporting a discharge petition to bring the bill to the House floor. Ultimately, it passed by a vote of 231-195 with 20 Republicans joining Democrats in support.

“Collective bargaining rights ensure our jobs and protect frontline workers whose voice in the service matters, and it needs to be heard,” said rally attendee Terry Scott, national executive vice president of the National Treasury Employees Union (NTEU).

Over in the Senate, at least two Republicans, Senators Susan Collins (R-ME) and Lisa Murkowski (R-AK) are cosponsors. 

Plans to Dismantle TSA Union Halted

Meanwhile, a federal judge in Seattle blocked the Trump Administration from terminating union representation for Transportation Security Administration (TSA) employees. 

U.S. District Judge Jamal Whitehead granted an emergency motion to prohibit TSA from eliminating a collective bargaining agreement (CBA) covering approximately 47,000 airport security screeners. TSA was set to dissolve the CBA on January 18. 

DHS moved to terminate the CBA despite a court issuing a preliminary injunction against such a move.  

The case is still scheduled to go to trial in September 2026, absent any new developments or updates.