Federal Mediation Agency Faces Shutdown Amid Trump Administration Cuts

WASHINGTON, D.C. — The Federal Mediation and Conciliation Service (FMCS), a key agency in resolving labor disputes, was notified Wednesday that most of its employees would be placed on administrative leave and face potential layoffs. This decision follows an executive order from President Donald Trump aimed at reducing the operational scope of independent agencies.

FMCS, which was established by the Taft-Hartley Act of 1947, had roughly 200 employees prior to the current administration’s actions, but had already diminished its workforce significantly. Following the recent measures, only 15 core staff members and mediators will remain in the agency’s Washington headquarters, according to an insider privy to the agency’s plans.

The cuts come as part of President Trump’s broader strategy to minimize the performance of regulations and functions at several federal agencies. In a statement issued by FMCS, employees were informed that their work would cease immediately due to the executive order calling for drastic personnel reductions.

“I am deeply saddened to witness such drastic and short-sighted measures taken against a Congressionally-established agency that has played such a critical role in serving our nation and taxpayers since 1947,” an anonymous employee remarked. “Working at FMCS has been one of the most rewarding experiences of my career.”

Over the years, the FMCS has successfully helped avert labor disputes that could have cost the U.S. economy upwards of $500 million annually, with a modest budget of $55 million. Labor experts have emphasized the agency’s value, stating, “It’s sad that this service to our country is going to be lost,” highlighting the importance of governmental mediation compared to private-sector alternatives.

In addition to FMCS, Trump’s executive order extends to other independent agencies. This includes a push to eliminate certain functions of the U.S. Agency for Global Media and suggests potential cuts to the Institute of Museum and Library Services (IMLS), which supports libraries and museums through nearly $300 million in annual grants. The IMLS is currently in discussions regarding potential administrative leave for its 70 employees.

Members of Congress have responded with concern. A bipartisan group of senators addressed letters to acting IMLS Director Keith Sonderling and Office of Management and Budget Director Russ Vought, insisting that the agency must continue to disburse appropriated funds. Senators Jack Reed (D-R.I.), Kirsten Gillibrand (D-N.Y.), Susan Collins (R-Maine), and Lisa Murkowski (R-Alaska) emphasized IMLS’s essential role and expressed their commitment to supporting the agency’s mission.

Further, the Trump administration’s order also targets the Minority Business Development Agency (MBDA), which assists minority-owned businesses in securing access to financial resources and contracts. The Commerce Department is preparing to issue Reduction in Force notices to MBDA employees in the coming weeks, as it faces potential shut down.

Congressional leaders, including Senators Mark Warner (D-Va.) and Mike Crapo (R-Idaho), have called on the Treasury Secretary to protect the Community Development Financial Institutions Fund, asserting that any reduction to its operational capacity would adversely affect underserved communities.

As federal agencies grapple with these guidelines, many are attempting to navigate the reductions through attrition and incentives rather than widespread layoffs. However, significant workforce shrinkages have yet to be realized in most large agencies.