Judge Tosses Treasury’s Suit to Void Federal Worker Contract (1)

May 21, 2025, 1:24 AM UTCUpdated: May 21, 2025, 2:38 PM UTC

A Kentucky federal judge dealt a blow to the Trump administration, dismissing a Treasury Department lawsuit seeking to nix a labor contract for IRS workers in Covington.

The Treasury Department lacks standing to bring the action, Judge Danny Reeves of the US District Court for the Eastern District of Kentucky ruled Tuesday. Reeves, a George W. Bush appointee, granted summary judgment to the National Treasury Employees Union Chapter 73.

The ruling is a setback for the administration’s push to nullify collective bargaining and union rights for over a million federal employees. But it comes days after a federal appeals court ...

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