Unions Sue DoD Over Canceled Bargaining Contracts

Last Updated: July 5, 2026

The American Federation of Government Employees and the National Federation of Federal Employees sued the Defense Department on July 3, 2026, asking a federal court to void Secretary Hegseth's April 9 memo that terminated nearly all DoD collective bargaining agreements.

The legal theory is the Administrative Procedure Act. The complaint argues DoD "reversed DoD's policy to leave CBAs in place without any reasoned explanation," calling the move an unexplained U-turn, and says the memo "must be vacated and set aside."

DoD's stated authority is Executive Order 14251, which Hegseth said requires aligning agency operations "with national security requirements." The memo landed more than a year after the order was signed, and unions say contracts were cut off within roughly 24 hours, with DoD no longer accepting grievances. The order's legality is already being tested in several parallel cases.

The congressional track runs alongside the courtroom one. The House version of the FY2027 NDAA (H.R. 8800) includes Section 1110, adopted 30 to 26 in committee with Republicans Don Bacon, Mike Turner, and Derrick Van Orden crossing over. It bars any FY2027 funds from being used to implement the executive order, which would effectively restore DoD bargaining. The Senate Armed Services bill contains no bargaining provision at all.

Temper expectations accordingly: in the FY2026 cycle, the House stripped its own identical protection during conference negotiations. Committee passage is not survival.

What this means for DoD civilians right now: nothing about your grievance rights changes until a court rules or a final NDAA passes. Statutory protections that don't depend on a contract, including RIF procedures and MSPB appeal rights, remain in effect. Our DoD union contract termination survival guide covers what still protects you contract or no contract, and the FY2027 NDAA breakdown for DoD civilians tracks the House-Senate differences that conference will have to resolve.

We'll update both guides as the docket and the NDAA conference move.

Sources: Federal News Network (July 2026), H.R. 8800 committee text, Senate Armed Services Committee FY2027 NDAA filing.