VA Redirects Millions from Union Subsidies to Strengthen Veteran Health Care
The Department of Veterans Affairs (VA) has announced a sweeping shift in how it allocates taxpayer resources, redirecting nearly $45 million per year from subsidizing federal unions back to the veterans, families, caregivers, and survivors it serves, according to a press release. The decision, announced on August 6, reflects the VA’s effort to maximize its mission by ensuring that federal employees are focused on veteran care rather than union business.
Reduction in Union Contracts
At the heart of the change is the VA’s termination of union contracts for most bargaining-unit employees. This decision reduced the number of bargaining-unit employees from roughly 375 000 down to just 7000. As a result, thousands of VA employees have been returned to their official roles, with their time and skills once again dedicated to direct service for veterans.
In fiscal year 2024 alone, the VA reported spending $39.75 million to allow 1961 employees to perform nearly 750 000 hours of union-related work instead of serving veterans. Many of these employees held critical positions. More than 1000 staff members in direct patient-care roles had been working full time for unions rather than treating patients. Other examples included six registered nurses collectively earning nearly $1.2 million annually, five attorneys with combined compensation of $1.25 million, four pharmacists earning more than $700 000, and a physician’s assistant and claims examiner with salaries of $225 000 and $190 000, respectively. These employees have now returned to their professional duties within the VA.
Reclaiming Space and Equipment
The VA has also reclaimed resources once dedicated to union use. Over 180 000 square feet of office space, worth about $5.4 million annually, has been taken back from unions and will be repurposed to expand administrative and clinical services at VA facilities nationwide. In some cases, the reclaimed areas were substantial. At the Salem VA Medical Center, union leadership relinquished an entire 7500-square-foot wing, while the James H. Quillen VA Medical Center in Tennessee regained 3800 square feet. Eleven other facilities recovered offices larger than 2000 square feet each.
Renewed Focus on Mission
The reallocation marks what officials describe as a significant step toward improving access to care and services by ensuring taxpayer dollars—and VA employees’ time—are aligned with the needs of veterans. By redirecting funds, reclaiming space, and returning skilled professionals to patient care, the VA aims to enhance its ability to deliver high-quality services and honor its commitment to those who served.
Reference
VA redirects millions in wasteful union spending back to Veterans. News release. news.va.gov. Published August 22, 2025. Accessed August 27, 2025. https://news.va.gov/press-room/va-redirects-millions-in-wasteful-union-spending-back-to-veterans/
