Federal Agencies
Trump move to scale back federal mediation agency prompts court fights as past FMCS spending scandal resurfaces
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President Donald Trump’s administration moved in 2025 to sharply reduce the Federal Mediation and Conciliation Service (FMCS) as part of a broader effort targeting seven small agencies, placing most staff on administrative leave and closing field offices. The push has been challenged in court, while earlier investigative reporting from 2013 and 2025 described extensive misuse of funds and lax oversight inside the little-known labor mediation agency.
President Donald Trump has moved to downsize or eliminate the Federal Mediation and Conciliation Service, a small independent agency that has faced detailed allegations of wasteful spending and lax oversight. Investigative reporting by The Daily Wire, based on audits and interviews conducted a decade earlier, described a pattern of questionable expenses, self‑dealing, and perks for employees at the 230‑person agency, which was created to mediate disputes between unions and businesses.
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By year’s end, the civilian federal workforce is projected to fall from about 2.4 million to roughly 2.1 million employees, according to Office of Personnel Management Director Scott Kupor. The cuts—championed by budget chief Russell Vought and the White House initiative dubbed the Department of Government Efficiency, which Elon Musk led for the first four months—have targeted agencies overseeing health, the environment, education, and financial regulation while expanding immigration enforcement.