Dozens of federal labor mediators have returned to work at the Federal Mediation and Conciliation Service (FMCS) following a court order halting mass layoffs, but the agency’s future remains in jeopardy. The Trump administration is pushing for a 2026 budget that would slash FMCS funding from $50 million to just $7 million, effectively dismantling the agency and eliminating most staff. Labor advocates warn that shutting down FMCS will especially harm smaller employers and lead to more frequent and prolonged strikes. The move has drawn criticism from both union and management-side attorneys, and further litigation is expected.
See "Federal Mediation Services’ Future Dim Despite Workers’ Return", Parker Purifoy, Bloomberg Law News, July 2, 2025