Exclusions from Federal Labor-Management Relations Programs

Published: Fri 28th Mar 25

President Trump's March 27, 2025 executive order excludes numerous federal agencies and subdivisions from the Federal Service Labor-Management Relations Statute.

The order claims this exclusion is necessary for national security reasons, impacting intelligence, counterintelligence, investigative, or national security work.

It amends Executive Order 12171 and delegates authority to the Secretaries of Defense, Veterans Affairs, and Transportation to make further exclusions.

The order also requires a review of agencies not currently excluded and mandates changes to related employee assignments and grievance processes.

Excluded agencies and subdivisions primarily serve roles within the Departments of State, Defense, Treasury, Veterans Affairs, Justice, Homeland Security, Interior, Energy, Agriculture, and Commerce, as well as several independent agencies.

Arguments For

Enhanced National Security: The order argues that excluding certain agencies strengthens national security by protecting sensitive information and operations from potential disruptions caused by collective bargaining.
Operational Efficiency: The order suggests that removing some agencies from collective bargaining allows for greater flexibility and efficiency in responding to national security threats and implementing critical missions.
Legal Authority: The order cites specific sections of the United States Code (5 U.S.C. 7103(b)(1) and 22 U.S.C. 4103(b)) as legal basis for the presidential authority to take such actions.
Protection of Sensitive Information: The executive order contends that the specific agencies listed handle sensitive information; therefore, the standard labor-management processes could compromise national security. This is supported by the sections defining national security work.

Arguments Against

Undermining Employee Rights: Critics argue that the order weakens the rights of federal employees in designated agencies, potentially leading to decreased morale, increased job insecurity, and hindered agency effectiveness.
Implementation Challenges: Implementing the order may lead to significant logistical, administrative, and legal challenges, particularly in re-assigning personnel and terminating existing grievances and legal processes.
Lack of Transparency: The broad application of the order to numerous agencies without specific justification for each instance could be perceived as opaque and potentially arbitrary potentially leading to legal challenges.
Negative Impact on Public Services: The restrictions on collective bargaining could negatively affect the quality of public services provided by the affected agencies, particularly in areas critical for public well-being.
Limited Scope of Review: The review process outlined (sec 7) may not be sufficient to adequately address the concerns of affected employees and agencies, leaving potential for lasting, unfair decisions concerning employment.

By the authority vested in me as President by the Constitution and the laws of the United States of America, including sections 7103(b)(1) of title 5 and 4103(b) of title 22, United States Code, to enhance the national security of the United States, it is hereby ordered:

This opening statement asserts the President's authority to issue the order based on constitutional and legal grounds, specifically citing sections of the United States Code related to national security.

The stated objective is to improve the nation's security.

Section 1. Determinations. (a) The agencies and agency subdivisions set forth in section 2 of this order are hereby determined to have as a primary function intelligence, counterintelligence, investigative, or national security work. It is also hereby determined that Chapter 71 of title 5, United States Code, cannot be applied to these agencies and agency subdivisions in a manner consistent with national security requirements and considerations.

(b) The agency subdivisions set forth in section 3 of this order are hereby determined to have as a primary function intelligence, counterintelligence, investigative, or national security work. It is also hereby determined that Subchapter X of Chapter 52 of title 22, United States Code, cannot be applied to these subdivisions in a manner consistent with national security requirements and considerations.

Section 1 establishes that the agencies and subdivisions listed in sections 2 and 3 primarily conduct intelligence, counterintelligence, investigative, or national security work.

It declares that standard federal labor-management relations laws cannot be applied to these entities without compromising national security objectives.

Sec. 2. Additional National Security Exclusions. Executive Order 12171 of November 19, 1979, as amended, is further amended by:

(a) In section 1-101, adding “and Section 1-4” after “Section 1-2” in both places that term appears.

(b) Adding after section 1-3 a new section 1-4 that reads:

“1-4. Additional Exclusions.

1-401. The Department of State.

1-402. The Department of Defense, except for any subdivisions excluded pursuant to section 4 of the Executive Order of March 27, 2025, entitled ‘Exclusions from Federal Labor-Management Relations Programs.’

1-403. The Department of the Treasury, except the Bureau of Engraving and Printing.

1-404. The Department of Veterans Affairs.

1-405. The Department of Justice.

1-406. Agencies or subdivisions of the Department of Health and Human Services:

(a) Office of the Secretary.

(b) Food and Drug Administration.

(d) Administration for Strategic Preparedness and Response.

(e) Office of the General Counsel.

(f) Office of Refugee Resettlement, Administration for Children and Families.

(g) National Institute of Allergy and Infectious Diseases, National Institutes of Health.

1-407. Agencies or subdivisions of the Department of Homeland Security:

(a) Office of the Secretary.

(b) Office of the General Counsel.

(d) Management Directorate.

(e) Science and Technology Directorate.

(f) Office of Health Security.

(g) Office of Homeland Security Situational Awareness.

(h) U.S. Citizenship and Immigration Services.

(i) United States Immigration and Customs Enforcement.

(j) United States Coast Guard.

(k) Cybersecurity and Infrastructure Security Agency.

(l) Federal Emergency Management Agency.

1-408. Agencies or subdivisions of the Department of the Interior:

(a) Office of the Secretary.

(b) Bureau of Land Management.

(d) Bureau of Ocean Energy Management.

1-409. The Department of Energy, except for the Federal Energy Regulatory Commission.

1-410. The following agencies or subdivisions of the Department of Agriculture:

(a) Food Safety and Inspection Service.

(b) Animal and Plant Health Inspection Service.

1-411. The International Trade Administration, Department of Commerce.

1-412. The Environmental Protection Agency.

1-413. The United States Agency for International Development.

1-414. The Nuclear Regulatory Commission.

1-415. The National Science Foundation.

1-416. The United States International Trade Commission.

1-417. The Federal Communications Commission.

1-418. The General Services Administration.

1-419. The following agencies or subdivisions of each Executive department listed in section 101 of title 5, United States Code, the Social Security Administration, and the Office of Personnel Management:

(a) Office of the Chief Information Officer.

(b) any other agency or subdivision that has information resources management duties as the agency or subdivision’s primary duty.

1-499. Notwithstanding the forgoing, nothing in this section shall exempt from the coverage of Chapter 71 of title 5, United States Code:

(a) the immediate, local employing offices of any agency police officers, security guards, or firefighters, provided that this exclusion does not apply to the Bureau of Prisons;

(b) subdivisions of the United States Marshals Service not listed in section 1-209 of this order; or

(c) any subdivisions of the Departments of Defense or Veterans Affairs for which the applicable Secretary has issued an order suspending the application of this section pursuant to section 4 of the Executive Order of March 27, 2025, entitled ‘Exclusions from Federal Labor-Management Relations Programs.’”,

Section 2 amends Executive Order 12171 by adding numerous agencies and their subdivisions to the list of those excluded from the Federal Service Labor-Management Relations Statute.

The amendments significantly expand the scope of exclusions, prioritizing national security concerns.

Note that some exceptions are made within the listed departments.

Sec. 3. Foreign Service Exclusions. Executive Order 12171, as amended, is further amended by:

(a) In the first paragraph:

(i) adding “and Section 4103(b) of Title 22,” after “Title 5”; and

(ii) adding “and Subchapter X of Chapter 52 of Title 22” after “Relations Program.”.

(b) Adding after section 1-102 a new section 1-103 that reads:

“1-103. The Department subdivisions set forth in section 1-5 of this order are hereby determined to have as a primary function intelligence, counterintelligence, investigative, or national security work. It is also hereby determined that Subchapter X of Chapter 52 of title 22, United States Code, cannot be applied to those subdivisions in a manner consistent with national security requirements and considerations. The subdivisions set forth in section 1-5 of this order are hereby excluded from coverage under Subchapter X of Chapter 52 of title 22, United States Code.”

“1-5. Subdivisions of Departments Employing Foreign Service Officers.

1-501. Subdivisions of the Department of State:

(a) Each subdivision reporting directly to the Secretary of State.

(b) Each subdivision reporting to the Deputy Secretary of State.

(d) Each subdivision reporting to the Under Secretary for Management.

(e) Each subdivision reporting to the Under Secretary for Arms Control and International Security.

(f) Each subdivision reporting to the Under Secretary for Civilian Security, Democracy, and Human Rights.

(g) Each subdivision reporting to the Under Secretary for Economic Growth, Energy, and Environment.

(h) Each subdivision reporting to the Under Secretary for Political Affairs.

(i) Each subdivision reporting to the Under Secretary for Public Diplomacy.

(j) Each United States embassy, consulate, diplomatic mission, or office providing consular services.

1-502. Subdivisions of the United States Agency for International Development:

(a) All Overseas Missions and Field Offices.

(b) Each subdivision reporting directly to the Administrator.

(d) Each subdivision reporting to the Deputy Administrator for Management and Resources.”.

Section 3 further amends Executive Order 12171 to explicitly exclude subdivisions within departments employing Foreign Service Officers from the coverage of Subchapter X of Chapter 52 of Title 22, United States Code.

This specifically targets sections of the Foreign Service relating to labor-management relations and explicitly incorporates the rationale of national security.

Sec. 4. Delegation of Authority to the Secretaries of Defense and Veterans Affairs. (a) Subject to the requirements of subsection (b) of this section, the Secretaries of Defense and Veterans Affairs are delegated authority under 5 U.S.C. 7103(b)(1) to issue orders suspending the application of section 1-402 or 1-404 of Executive Order 12171, as amended, to any subdivisions of the departments they supervise, thereby bringing such subdivisions under the coverage of the Federal Service Labor-Management Relations Statute.

(b) An order described in subsection (a) of this section shall only be effective if:

(i) the applicable Secretary certifies to the President that the provisions of the Federal Service Labor-Management Relations Statute can be applied to such subdivision in a manner consistent with national security requirements and considerations; and

(ii) such certification is submitted for publication in the Federal Register within 15 days of the date of this order.

Section 4 delegates authority to the Secretaries of Defense and Veterans Affairs to reinstate the application of the Federal Service Labor-Management Relations Statute to specific subdivisions within their respective departments.

This action can only be taken after a certification process and publication in the Federal Register.

This allows for potential flexibility in applying the broad exclusions.

Sec. 5. Delegation of Authority to the Secretary of Transportation. * (a) The national security interests of the United States in ensuring the safety and integrity of the national transportation system require that the Secretary of Transportation have maximum flexibility to cultivate an efficient workforce at the Department of Transportation that is adaptive to new technologies and innovation. Where collective bargaining is incompatible with that mission, the Department of Transportation should not be forced to seek relief through grievances, arbitrations, or administrative proceedings.

(b) The Secretary of Transportation is therefore delegated authority under section 7103(b) of title 5, United States Code, to issue orders excluding any subdivision of the Department of Transportation, including the Federal Aviation Administration, from Federal Service Labor-Management Relations Statute coverage or suspending any provision of that law with respect to any Department of Transportation installation or activity located outside the 50 States and the District of Columbia. This authority may not be further delegated. When making the determination required by 5 U.S.C. 7103(b)(1) or 7103(b)(2), the Secretary of Transportation shall publish his determination in the Federal Register.

Section 5 grants the Secretary of Transportation authority to exclude any subdivision of the Department of Transportation, including the FAA, from the Federal Service Labor-Management Relations Statute or suspend provisions of the law, particularly for international operations.

This is justified by the need for operational flexibility and efficiency within the transportation system.

The Secretary is to publish any determinations within the Federal Register.

Sec. 6. Implementation. With respect to employees in agencies or subdivisions thereof that were previously part of a bargaining unit but have been excepted under this order, each applicable agency head shall, upon termination of the applicable collective bargaining agreement:

(a) reassign any such employees who performed non-agency business pursuant to section 7131 of title 5 or section 4116 of title 22, United States Code, to performing solely agency business; and

(b) terminate agency participation in any pending grievance proceedings under section 7121 of title 5, United States Code, exceptions to arbitral awards under section 7122 of title 5, United States Code, or unfair labor practice proceedings under section 7118 of title 5 or section 4116 of title 22, United States Code, that involve such employees.

Section 6 outlines the implementation steps for affected agencies.

Upon termination of collective bargaining agreements, agencies must reassign employees previously involved in non-agency business to solely agency work and terminate participation in any pending grievances or legal proceedings involving the affected employees.

Sec. 7. Additional Review. Within 30 days of the date of this order, the head of each agency with employees covered by Chapter 71 of title 5, United States Code, shall submit a report to the President that identifies any agency subdivisions not covered by Executive Order 12171, as amended:

(a) that have as a primary function intelligence, counterintelligence, investigative, or national security work, applying the definition of “national security” set forth by the Federal Labor Relations Authority in Department of Energy, Oak Ridge Operations, and National Association of Government Employees Local R5-181, 4 FLRA 644 (1980); and

(b) for which the agency head believes the provisions of Chapter 71 of title 5, United States Code, cannot be applied to such subdivision in a manner consistent with national security requirements and considerations, and the reasons therefore.

Section 7 mandates a 30-day review by agency heads to identify additional subdivisions not yet covered by Executive Order 12171, that perform national security functions, and which should be excluded from federal labor-management regulations due to national security concerns.

A report detailing these findings must be submitted to the President.

Sec. 8. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Section 8 contains general provisions clarifying that the order does not diminish existing legal authorities.

Implementation is dependent on legal compliance and available funding.

The order does not create any new legal rights or benefits.

DONALD J. TRUMP

THE WHITE HOUSE,

March 27, 2025.

This concludes the order with the President's signature and the date of issuance.

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