A federal appeals court has handed federal employee unions at least an intermittent legal win in an effort to overturn Executive Order 14251, the Order that removed collective bargaining rights from hundreds of thousands of federal employees on national security grounds.
In this new decision, the American Federation of Government Employees (AFGE) challenged the Department of Veterans Affairs’ (VA) termination of its August 2023 Master Collective Bargaining Agreement (CBA). The CBA had a three-year term and could only be amended by mutual consent. The VA terminated it on August 6, 2025 (and attempted a re-termination in March 2026).
In this case, the Court of Appeals for the First Circuit refused to block a lower court injunction requiring the VA to restore its collective bargaining agreement with AFGE.
The ruling does not settle the legality of legal challenges to Executive Order 14251. It does create a significant split in momentum among federal courts and complicates the administration’s broader effort to dismantle union bargaining rights across much of the federal workforce.
Executive Order 14251
Executive Order 14251, signed in March 2025, invoked presidential authority under 5 U.S.C. § 7103(b)(1) to exclude agencies engaged in “intelligence, counterintelligence, investigative, or national security work” from federal collective bargaining laws.
The order affected a significant number of federal agencies and subdivisions, including the Department of Veterans Affairs, EPA, DOJ, Treasury, and large portions of the Defense Department.
The administration argued that collective bargaining agreements created operational delays and hindered agencies from carrying out national security missions. OPM later instructed covered agencies to terminate or modify collective bargaining agreements as quickly as possible.
The VA subsequently terminated its national agreement with AFGE, affecting more than 300,000 employees.
What the First Circuit Decided
The First Circuit upheld a preliminary injunction issued by a federal district judge in Rhode Island that ordered the VA to restore the AFGE collective bargaining agreement while litigation continues.
Chief Judge David Barron wrote that the government failed to show the lower court decision “likely was issued in error.” The appeals court concluded the administration had not made the “strong showing” necessary to justify suspending the injunction during the appeal.
The practical impact of this decision is:
- The collective bargaining agreement remains largely in effect for now.
- AFGE retains significant representational rights at the department.
- The administration cannot terminate the contract while the lawsuit proceeds.
The court did narrow the lower court’s enforcement order by pausing requirements related to processing all pending grievances and arbitration matters under the agreement.
Related Earlier Court Decisions
The ruling contrasts sharply with the Ninth Circuit decision outlined in Appeals Court Upholds Trump Executive Order Restricting Bargaining, published on February 27, 2026.
In that case, the Ninth Circuit vacated a preliminary injunction that had blocked Executive Order 14251 nationwide.
The Ninth Circuit concluded the administration likely would prevail against claims that the executive order was retaliatory toward unions. The court emphasized the broad national-security authority Congress granted presidents under the Federal Service Labor-Management Relations Statute.
The Ninth Circuit noted that presidents of both parties historically used § 7103(b)(1) exclusions for national security purposes, although Executive Order 14251 represented by far the largest use of that authority.
Importantly, however, the Ninth Circuit did not definitively rule that the executive order itself was lawful in every respect. Instead, it held that the unions had not shown sufficient likelihood of success on their First Amendment retaliation claims to justify a preliminary injunction.
The First Circuit’s decision differs because it focuses on whether the VA could terminate an already-existing collective bargaining agreement while litigation remains unresolved.
Importance of the First Circuit Decision
The First Circuit decision suggests at least some federal judges are hesitant to uphold the administration’s sweeping use of national-security authority to eliminate collective bargaining rights.
The opinion also reinforces an important practical issue: even if Executive Order 14251 is ultimately upheld, agencies may still face legal obstacles when attempting to terminate existing negotiated agreements.
That distinction could become increasingly important as litigation continues in multiple jurisdictions.
Other Cases Pending
The broader legal battle over Executive Order 14251 is far from over. Multiple lawsuits remain active involving several federal employee unions and agencies.
Some cases challenge:
- The legality of the executive order itself,
- Whether agencies properly terminated existing agreements, and
- Whether the administration exceeded the authority granted under federal labor law.
Several cases are proceeding in the D.C. Circuit, which historically has handled many federal labor relations disputes.
In other words, this latest ruling from the First Circuit Court of Appeals is important, but the final outcome in the VA or other federal agencies is still a long way from a final decision.
This was an appellate ruling on a district court’s preliminary injunction. It is not a final decision on the merits of the Executive Order. The First Circuit did not permanently invalidate Executive Order 14251. Nor did it rule that the president lacks authority to invoke national-security exclusions under federal labor law.
Instead, the court concluded only that:
- The unions presented strong claims,
- The harm they would experience justified keeping the contract in place temporarily, and
- The administration failed to justify emergency relief.
The case will likely continue on to the next step in the legal process. The administration has several options it can pursue:
- It can seek a rehearing,
- It can continue litigating in the district court,
- The administration (or the union) can eventually appeal to the Supreme Court, where the case will probably be decided.
In short, the First Circuit decision gives federal employee unions an early legal win. The case also shows the administration’s efforts to restrict bargaining rights in a number of federal agencies are still facing substantial judicial resistance. In all likelihood, the case will eventually wind up before the US Supreme Court.
