National Treasury Employees Union v. Donald J. Trump

District Court, District of Columbia·Decided May 20, 2025·No. Civil Action No. 2025-0935·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

____________________________________ ) ) NATIONAL TREASURY EMPLOYEES ) UNION, ) ) Plaintiff, ) ) v. ) Civil Action No. 25-0935 (PLF) ) DONALD J. TRUMP et al., ) ) Defendants. ) ____________________________________)

MEMORANDUM OPINION AND ORDER

On April 25, 2025, the Court issued a preliminary injunction enjoining

implementation of Section 2 of Executive Order 14251, titled “Exclusions from Federal Labor-

Management Relations Programs,” Exec. Order No. 14251, 90 Fed. Reg. 14553 (Mar. 27, 2025),

which excluded numerous agencies and subdivisions from the Federal Service Labor-

Management Relations Statute (“FSLMRS”). See Nat’l Treasury Emps. Union v. Trump, Civil

Action No. 25-0935 (PLF), 2025 WL 1201696 (D.D.C. Apr. 25, 2025) (Order); Nat’l Treasury

Emps. Union v. Trump, Civil Action No. 25-0935 (PLF), 2025 WL 1218044 (D.D.C. Apr. 28,

2025) (Opinion). The government appealed this decision, see Notice of Appeal [Dkt. No. 35],

and filed a motion to stay the preliminary injunction pending appeal, which this Court denied.

See Minute Order of May 1, 2025. On May 16, 2025, the United States Court of Appeals for the

District of Columbia Circuit issued an order staying this Court’s injunction pending appeal. See

National Treasury Employees Union v. Trump, No. 25-5157, Order (D.C. Cir. May 16, 2025)

(“D.C. Circuit Order”). In staying the injunction, the D.C. Circuit majority concluded that plaintiff

National Treasury Employees Union (“NTEU”) had “failed to establish irreparable harm” and

that this failure was “a sufficient basis for vacating [the] preliminary injunction.” D.C. Circuit

Order at 1-2.1 In reaching its conclusion, the court of appeals reasoned that NTEU’s two

purported irreparable harms – that it (1) “will lose bargaining power and suffer reputational harm

that will deter present and future membership,” and (2) “will suffer an irreparable financial

injury from the loss of automatically withheld union dues” – were insufficient to warrant a

preliminary injunction. See id. at 2.

As to the loss of bargaining power, the Circuit highlighted a “Frequently Asked

Questions” document published on April 8, 2025 – approximately four days after NTEU moved

for a preliminary injunction – by the Chief Human Capital Officers Council (“CHCOC”), see

D.C. Circuit Order at 2, which states that “[a]gencies should not terminate any CBAs until the

conclusion of litigation or further guidance from OPM directing such termination” and that

“[a]gencies should not file any decertification petitions until litigation regarding [the Executive

Order] has been resolved.” See Ex. 1-B to Declaration of Allen R. Brooks [Dkt. No. 26-1 at

ECF 13] (“CHCOC FAQs”); see also Declaration of Allen R. Brooks [Dkt. No. 26-1] ¶ 6 (stating

that agencies had been instructed to “not terminate any collective bargaining agreements

(“CBAs”) until the conclusion of litigation or further guidance from OPM directing such

termination”); Nat’l Treasury Emps. Union v. Trump, 2025 WL 1218044, at *18 (discussing

CHCOC FAQs). The Circuit reasoned that this instruction in the OPM FAQs rendered NTEU’s

harms “speculative because they would materialize only after an agency terminates a collective-

1 The D.C. Circuit did not vacate this Court’s preliminary injunction order. Instead, the Circuit’s order only stays this Court’s preliminary injunction order pending the appeal of that order.

2 bargaining agreement, and the Government directed agencies to refrain from terminating

collective-bargaining agreements or decertifying bargaining units until after the litigation

concludes.” D.C. Circuit Order at 2 (emphasis in original). The Circuit made clear, however,

that “if a specific agency or subagency deviates from that self-imposed rule, individual units may

seek injunctive relief appropriately tailored to any nonspeculative, irreparable harm.” Id. at 2

n.3.

Given the Circuit’s clarification that NTEU could “seek injunctive relief” if “a

specific agency or subagency deviates from [its] self-imposed rule,” D.C. Circuit Order at 2 n.3,

the Court will instruct the parties to meet and confer and file a joint status report apprising the

Court of proposed next steps for this litigation. As this Court found in its opinion granting

NTEU’s motion for a preliminary injunction, NTEU has presented substantial evidence

reflecting that certain agencies and subdivisions are disregarding provisions in the respective

collective bargaining agreements “notwithstanding the lack of the formal cancellation of the

collective bargaining agreements.” See Nat’l Treasury Emps. Union v. Trump, 2025

WL 1218044, at *18. A sworn declaration from NTEU’s Director of Field Operations, Daniel

Kaspar, lists numerous actions certain agencies and subdivisions have taken already that reflect a

disregard or violation of the collective bargaining agreements, including:

9. Agencies are stopping payroll deductions for dues payments from NTEU members to NTEU.

10. For example, [Interior Business Center] stated in a March 28, 2025 email that “[a]s a result of Executive Order 'Exclusions from Federal Labor-Management Relations Programs’ published March 27, 2025, the Interior Business Center (IBC) was directed to remove all union deductions from the Pay Period 25-07 calculate file.” (Exhibit 1).

11. Updating an earlier notice, [National Finance Center] stated in an April 9, 2025 email that it was providing additional information

3 “regarding halting union dues deductions” and was taking action “to ensure the termination of future union deductions[.]” (Exhibit 2).

12. Consistent with these statements from payroll processing entities, some agencies have notified NTEU that they have stopped dues withholding. For example, [Alcohol and Tobacco Tax and Trade Bureau (“TTB”)] told NTEU on April 11, 2025 that “[p]ursuant to the executive order signed on March 27, 2025, Exclusions from Federal Labor-Management Relations Programs, the National Finance Center (NFC) will be halting union dues deductions for covered Treasury Bureaus . . . effective pay period 6 (March 23, 2025 through April 5, 2025) and beyond.” (Exhibit 3).

13. At the end of pay period March 9, 2025-March 22, 2025, NTEU lost more than a million dollars in dues that it otherwise would have received, if agencies had not halted automatic dues withholding.

14. At the end of pay period March 23, 2025-April 6, 2025, NTEU again lost more than a million dollars in dues that it otherwise would have received, if agencies had not halted automatic dues withholding.

15. In addition to agencies’ refusal to comply with statutory and contractual dues withholding requirements, agencies are refusing to comply with other collective bargaining agreement provisions as well.

16. For example, the IRS sent out a notice to employees on April 4, 2025, stating that “[t]he IRS has begun implementing a Reduction in Force (RIF) that will result in staffing cuts across multiple offices and job categories.” (Exhibit 4). The IRS is beginning this process without following the RIF provisions in the IRS-NTEU collective bargaining agreement, such as required advance notice to NTEU’s President.

17. Indeed, IRS notices to employees affected by the RIF explicitly disavow any obligation to bargain or otherwise follow relevant collective bargaining agreement provisions. The notices state:

Collective bargaining agreements required additional steps before proceeding with a RIF, including extended negotiation periods and waiting periods.

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