WASHINGTON, D.C. — The U.S. Department of Veterans Affairs (VA) announced it is shifting tens of millions of dollars in taxpayer funds away from subsidizing federal union activities and reallocating them to improve services for Veterans, families, caregivers, and survivors.
The move follows the VA’s August 6 decision to terminate union contracts for most bargaining-unit employees, reducing the number of employees covered by such agreements from approximately 375,000 to about 7,000. Officials estimate the change will redirect nearly $45 million annually to direct support for Veterans.
According to the VA, one of the most significant cost savings comes from ending “taxpayer-funded union time.” In 2024, nearly 1,961 employees collectively spent almost 750,000 hours on union business instead of their assigned duties, at an annual cost of $39.75 million. Many of these employees served in direct patient-care roles and have now returned full-time to their original positions.
The VA has also reclaimed over 180,000 square feet of office space previously provided to unions free of charge, an estimated value of $5.4 million. These facilities will be repurposed to expand clinical and administrative services. Additionally, more than 2,000 pieces of IT equipment worth about $600,000 have been recovered from union representatives.
Specific examples highlighted by the agency include registered nurses, attorneys, pharmacists, and other senior staff who were previously paid full salaries while performing union-related work rather than providing care or processing claims.
Several facilities are already benefiting from reclaimed resources. At the Salem VA Medical Center in Virginia, a 7,500-square-foot wing previously occupied by union offices will now be used for patient care and administrative functions. Similar repurposing is underway at the James H. Quillen VA Medical Center in Tennessee and 11 other facilities nationwide.
“VA staff will now get to spend more time with Veterans, VA facilities can focus on treating Veterans, and VA can manage its staff according to Veterans’ needs,” said VA Secretary Doug Collins.
The department emphasized that the changes are part of a broader effort to prioritize services and resources directly benefiting Veterans.
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