Weekly Federal Labor Roundup — VA & AFGE News (August 28–September 3, 2026)

A proposed 2027 pay freeze, a subpoena over the Department of Veterans Affairs health record overhaul, and a shutdown averted — this week's roundup.

This week the White House formally proposed freezing pay for most federal employees in 2027, a House committee subpoenaed Oracle executives over the cost of the Department of Veterans Affairs (VA) electronic health record overhaul, and Congress passed a short-term spending bill that pushes off a government shutdown. Here is what employees at Hampton VA Medical Center should know.

VA & Veterans

  • A House committee has subpoenaed Oracle executives over the ballooning cost of the VA’s electronic health record overhaul. Nextgov reports that lawmakers want answers about the price tag and the delays on the system that is scheduled to replace the record system our clinicians use every day. Read more
  • A new book looks at how veterans themselves are responding to attacks on democratic institutions. Labor Notes reviews Courage or Complicity?, which follows veterans who have organized rather than stayed on the sidelines — a familiar story in a workforce where so many of us served. Read more

Threats to Federal Workers’ Protections

  • The President has formally proposed a 2027 pay freeze for most federal workers, with a 3.8% increase only for law enforcement. Government Executive reports the proposal was sent to Congress in the annual alternative pay plan, which sets the default raise unless lawmakers act. Read more
  • Unions warn the freeze will make it harder to hire and keep federal employees. Government Executive spoke with union leaders, including the American Federation of Government Employees (AFGE), who say another year without a raise deepens the recruitment and retention problems already hitting understaffed agencies like ours. Read more
  • A fired federal attorney is suing for reinstatement, calling the Merit Systems Protection Board “a dead end.” Government Executive reports the former pardon attorney went to federal court instead, arguing the board that is supposed to hear appeals from disciplined and removed employees is no longer able to deliver a real remedy. Read more
  • A whistleblower investigation found widespread compliance problems in the federal disability employment program. Government Executive reports the Office of Special Counsel substantiated claims that agencies mishandled the hiring authority meant to bring workers with disabilities into federal service. Read more
  • The House passed a stopgap spending bill, easing the immediate shutdown threat. Government Executive reports the continuing resolution keeps agencies funded past the deadline, which means no furloughs for now — but the fight simply moves to the next deadline. Read more
  • The Office of Personnel Management (OPM) named a new healthcare and insurance chief just ahead of Open Season. Government Executive reports the appointment puts new leadership over the Federal Employees Health Benefits Program right before the window when we all pick our coverage for next year. Read more
  • OPM is pushing agencies to use artificial intelligence to speed up hiring. Government Executive obtained a memo directing agencies to bring automated tools into the hiring process, which raises real questions about fairness, veterans’ preference, and how applicants get screened out. Read more

Union Wins & the Bigger Picture

  • Remote workers at DreamWorks ratified their first union contract. People’s World reports the win shows a scattered, work-from-home unit can still organize and bargain a first agreement — something worth remembering as telework fights continue across the government. Read more
  • Nurses across the Chicago area are moving to unionize. People’s World reports hospital nurses are organizing over staffing levels and patient safety — the same issues raised on our own units. Read more
  • A federal employees’ union and conservation groups are challenging a Yosemite deal with a private developer. People’s World reports the union representing park workers says handing park operations to a private company puts both public land and public jobs at risk. Read more
  • The University of Pennsylvania is suing to block its graduate students from union representation. People’s World reports the university is asking a court to undo the workers’ bargaining unit — one more example of an employer going to court rather than to the bargaining table. Read more

Have a question about how any of this affects your job, your pay, or your benefits? Reach out to your union steward or a Local 2328 officer — that is what we are here for.

In solidarity,
AFGE Local 2328 — Representing the employees of Hampton VA Medical Center

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