The Federal Mediation & Conciliation Service (FMCS) is a small, independent Agency whose mission is to support businesses and Workers in resolving workplace disputes and building positive Labor-Management relationships.

The FMCS has no authority to adjudicate disputes or issue regulations.

Outside of the Health Care Industry, it cannot require any business, Worker or Union to participate in mediation or take any particular action.

Rather, the FMCS uses its expertise and experience to help parties find mutually agreeable solutions to workplace disputes.

Through its work, the FMCS has helped resolve thousands of workplace disputes and saved the U.S. economy hundreds of millions of dollars annually.

In spite of this, the Trump Administration has targeted this Agency for elimination.

President Donald Trump first attempted to shut down the Agency by laying off almost all its Employees - but was stopped by two lawsuits and two Federal Court injunctions.

Trump’s proposed Fiscal Year 2026 budget included only $7.4 million for the FMCS to use in shutting down the agency.

But in a series of continuing resolutions, Congress has rejected the Trump Administration’s proposal and has continued to fund the FMCS at close to its Fiscal Year 2025 levels.  

This report describes the FMCS’s work and its importance to our National policy of supporting Collective Bargaining.

It goes on to detail the Trump Administration’s attacks on the Agency and efforts to resist these attacks.

The report concludes with recommendations for rebuilding and maintaining a quality and effective FMCS - recommendations that can also be implemented by States that have their own Mediation Agencies.

To Continue Reading This Labor News Report, Go To: The Trump administration’s short-sighted attacks on the Federal Mediation and Conciliation Service | Economic Policy Institute