Government & Public Sector — Federal Agencies Face Multiple Institutional Challenges as Union Tensions Rise and Tech Modernization Efforts Hit Roadblocks

Government & Public Sector · 2026-03-04

A clear pattern of institutional stress is emerging across federal agencies, with labor relations deteriorating as multiple agencies attempt to terminate union contracts, most notably at the IRS. This labor tension coincides with significant technological and operational challenges, including OPM's troubled HR IT consolidation project and DoD's controversial ban on Anthropic AI. The combination…