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Full Breakdown

First Circuit Upholds VA Union Contract Amid Ongoing Legal Battle

5/19/2026, 7:11:51 AM

Core Court Decision

On May 20, 2026 the First Circuit Court of Appeals unanimously denied the VA’s motion to stay a Rhode Island district court’s preliminary injunction that reinstates the AFGE National VA Council collective bargaining agreement for over 300,000 employees. The panel partially granted the Trump administration’s request to stay the enforcement order’s compliance provisions, keeping the reinstatement in force while pausing mandatory processing of pending grievances and arbitrations.

Background and Timeline

President Donald Trump’s March 2025 executive order expanded a 1978 statutory exemption, barring collective bargaining at the VA and other agencies; a second order in August 2025 widened the exemption. A Rhode Island judge issued a preliminary injunction restoring the AFGE CBA in March 2025, and Judge Melissa DuBose added an enforcement order in April 2025 requiring full compliance. The Ninth Circuit ruled in February 2026 the terminations were not retaliatory. The First Circuit’s May 2026 decision follows.

Scope and Numbers

The reinstated CBA covers more than 320,000 VA employees, with roughly 300,000 directly subject to the reinstatement requirement.

Responses and Opposition

AFGE National VA Council President MJ Burke said the VA “tried every which way to get around complying with the preliminary injunction,” while AFGE National President Everett Kelley called the agency’s claim of irreparable harm a “farce.” The VA argued the enforcement order “greatly expanded” the district court’s authority and would cause irreparable harm to the executive branch. The Trump administration contended that mandatory compliance intrudes on executive authority and would inflict substantial injury on the government.

Legal Uncertainties

The First Circuit’s partial stay leaves the CBA reinstated but suspends enforcement of pending grievances. The Ninth Circuit’s February ruling that the terminations were not retaliatory adds uncertainty. The Ninth Circuit and the District of Columbia Court of Appeals continue reviewing the legality of the 2025 and 2025-August executive orders.

Verbatim Quotes

  • “for nearly two months, the VA has tried every which way to get around complying with the preliminary injunction.” — MJ Burke, AFGE National VA Council President
  • “The decisions of Judge DuBose and the First Circuit make clear that the courts will hold the VA accountable. No one is above the law,” — MJ Burke
  • “AFGE National President Everett Kelley said in a statement that “VA’s claim that reinstating our contract would cause irreparable harm is a farce.” — Everett Kelley, AFGE National President
  • “the defendants have not shown that the preliminary injunction likely was issued in error.” — Chief Judge David J. Barron

Implications for Federal Labor Policy

The ruling reaffirms statutory protections for federal collective bargaining agreements and limits the executive branch’s ability to unilaterally terminate them. It also clarifies that courts can enforce both the form and substance of a CBA until lawfully amended.

Next Steps

The VA’s challenge to the reinstated CBA remains pending before the Ninth Circuit and the District of Columbia Court of Appeals, which are expected to address the broader legality of the 2025 and 2025-August executive orders and their impact on federal labor rights.