Treasury Department Terminates Union Contracts for IRS and Fiscal Service Workers

The move escalates President Trump's push to exert more control over the federal workforce.

Published on Feb. 28, 2026

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The Treasury Department has terminated its collective bargaining agreements with unionized workers at the Internal Revenue Service and the Bureau of the Fiscal Service, using an executive order signed by President Donald Trump as the authority for the terminations. The National Treasury Employees Union, which represents around 150,000 employees across 37 departments and agencies, says the IRS cannot unilaterally end its contract with the labor union.

Why it matters

This action is part of a broader effort by the Trump administration to limit the power of federal employee unions and give the executive branch more control over the federal workforce. The termination of these union contracts could have significant implications for IRS and Fiscal Service employees in terms of their pay, benefits, and working conditions.

The details

The Treasury Department cited President Trump's March 2020 executive order as the legal basis for terminating the collective bargaining agreements with the National Treasury Employees Union. This union represents around 150,000 workers across 37 different government agencies and departments. The IRS and Bureau of the Fiscal Service, which processes payments for the federal government, were two of the agencies impacted by the contract terminations.

  • On February 27, 2026, the Treasury Department terminated its collective bargaining agreement with unionized workers at the Internal Revenue Service.
  • Also this week, the Treasury Department terminated its union contract with the Bureau of the Fiscal Service.

The players

Treasury Department

The U.S. Department of the Treasury is the executive department responsible for promoting economic prosperity and ensuring the financial security of the United States.

National Treasury Employees Union

A labor union that represents around 150,000 employees across 37 different government departments and agencies, including the IRS and Bureau of the Fiscal Service.

President Donald Trump

The 45th President of the United States, who signed an executive order in March 2020 that the Treasury Department is using as the legal basis to terminate the union contracts.

Doreen Greenwald

The president of the National Treasury Employees Union, who stated that the IRS cannot unilaterally end its contract with the labor union.

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What they’re saying

“The IRS 'cannot unilaterally end' its contract with the labor union. The federal sector labor statute requires the IRS to have a collective bargaining agreement 'with the exclusive representative of its bargaining unit employees'.”

— Doreen Greenwald, President, National Treasury Employees Union

What’s next

The National Treasury Employees Union has previously sued the federal government over President Trump's executive order that is being used as the basis for these contract terminations. While a court had issued a preliminary injunction against the government, that was stayed pending an appeal. The union is likely to challenge the Treasury Department's actions in court.

The takeaway

This move by the Trump administration represents an escalation of efforts to limit the power of federal employee unions and give the executive branch more control over the federal workforce. The termination of these union contracts could have significant impacts on IRS and Fiscal Service employees, and is likely to face legal challenges from the affected unions.