NLRB Funding: Sources, Trends, and Impact on Case Processing

Table of Contents#

1. What is the NLRB?
2. Sources of NLRB Funding
3. Historical Funding Trends: A Look Back
4. How Funding Impacts Case Processing
5. Challenges and Controversies in NLRB Funding
6. The NLRB's Quorum Crisis and Leadership Transitions
7. Conclusion
8. References

What is the NLRB?#

Established in 1935 under the National Labor Relations Act (NLRA), the NLRB is an independent federal agency with two primary mandates:

• Preventing Unfair Labor Practices (ULPs): Investigating complaints filed by workers, unions, or employers alleging violations like wrongful termination for union activity, refusal to bargain in good faith, or coercive tactics against employees.
• Overseeing Union Elections: Conducting secret-ballot elections to determine if employees want to form or join a union, or decertify an existing union.

To fulfill these roles, the NLRB relies on a network of 26 regional offices, staffed by attorneys, field examiners, and administrative law judges (ALJs). Its effectiveness hinges on adequate funding to hire staff, train investigators, and manage a growing caseload.

Sources of NLRB Funding#

The NLRB is entirely funded by congressional appropriations—meaning its budget is approved annually by Congress as part of the federal budget process. Unlike some agencies, it does not generate revenue from fees or fines; all operational costs (salaries, office space, technology, etc.) are covered by taxpayer dollars.

Key Details of the Appropriations Process:#

• The NLRB submits a budget request to the President's Office of Management and Budget (OMB), which then includes it in the president's annual budget proposal to Congress.
• Congress reviews the request, often adjusting it through negotiations between the House, Senate, and the White House.
• Final funding is enacted via appropriations bills, typically as part of the "Labor, Health and Human Services, Education, and Related Agencies" (LHHS) appropriations package.

In recent years, the NLRB's annual budget has ranged from approximately $270 million to$300 million. For FY 2024, Congress flat-funded the agency at $299.2 million despite rising caseloads. The FY 2025 enacted level remained at$299.2 million, and the Trump administration's FY 2026 budget proposal requests $285.2 million—a 4.7$14 million) decrease reflecting anticipated savings from staffing reductions and workforce optimization (Proskauer, 2025). The House approved $294 million for the NLRB in its FY 2026 spending bill (Law360, 2025).

Historical Funding Trends: A Look Back#

NLRB funding has not kept pace with inflation or the growth of its responsibilities over time. Let's break down key trends:

Post-WWII to 1980s: Growth and Stability#

In its early decades, the NLRB saw steady funding increases as labor union membership peaked (e.g., 35% of the workforce in the 1950s). By the 1970s, its budget exceeded $100 million (adjusted for inflation), allowing it to expand regional offices and handle a surge in ULP cases.

1980s–2000s: Austerity and Stagnation#

The 1980s brought a shift in labor policy, with declining union membership and political pressure to reduce federal spending. Funding remained flat or declined in real terms (adjusted for inflation). For example, the NLRB's 1980 budget of $168 million (nominal) was equivalent to approximately$570 million in 2023 dollars; by 2000, its nominal budget was $177 million, but inflation eroded its purchasing power to roughly$300 million in 2023 dollars—a significant drop in real funding.

2010s–2020s: Modest Increases, Still Lagging#

In the 2010s, funding began to rise slightly, driven by a backlog of cases and renewed focus on labor rights. The 2023 budget was $299 million, but when adjusted for inflation, this remains well below 1980 levels. In 2008, one NLRB full-time employee was responsible for 58,200 private-sector workers; by 2023, that number had risen to 90,700 (Brookings, 2025). Meanwhile, the NLRB's caseload has surged: the agency's annual case intake increased by 47% from 2021 to 2024, reaching 24,566 cases in FY 2024 (NLRB, 2024). Union election petitions more than doubled from FY 2021 to FY 2024, rising to 3,286 petitions—a 27% increase over FY 2023 alone (NLRB, 2024).

How Funding Impacts Case Processing#

Funding directly shapes the NLRB's ability to process cases efficiently. Here's how:

1. Staffing Levels#

Adequate funding allows the NLRB to hire and retain attorneys, field examiners, and ALJs. When budgets are tight, staffing shortages occur:

• Field Examiners: These staff investigate ULP charges and conduct union elections. A 2021 Government Accountability Office (GAO) report found that regional offices often had 20–30% vacancy rates for field examiner positions, delaying investigations.
• ALJs: Administrative law judges hear ULP cases. The agency faces a persistent backlog of cases awaiting hearings before ALJs, with wait times stretching many months.
• FY 2026 Staffing Cuts: The proposed FY 2026 budget anticipates a reduction of 99 full-time equivalents (FTEs), bringing total staffing to 1,152 FTEs, driven by voluntary early retirements and deferred resignations (Proskauer, 2025).

2. Case Backlogs and Processing Time#

Underfunding leads to longer wait times for workers and employers:

• ULP Charges: The NLRB received 21,300 ULP charges in FY 2024—the highest number since FY 2016 (NLRB, 2024). In FY 2024, the Board issued decisions in 144 unfair labor practice cases and 115 representation cases, while Regional Offices issued 635 complaints (McNees, 2025).
• Union Elections: The NLRB held 1,943 elections in FY 2024, a 27% increase over FY 2023. As of August 2025, the agency had closed approximately 1,700 representation cases and about 11,800 unfair labor practice cases—about 1,600 to 1,900 more ULP cases than in 2023 or 2024 (Brookings, 2025).
• Growing Backlog: In February 2026, Acting General Counsel William B. Cowen acknowledged that the NLRB's backlog had "grown to the point where it is no longer sustainable" (NLRB, 2026). New intake protocols were implemented requiring charging parties to submit supporting information within two weeks to help reduce the backlog (HR Law Watch, 2026).

3. Technology and Modernization#

Outdated technology has long exacerbated delays. The NLRB's legacy NxGen Case Management System, originally deployed in the late 2000s, lacked modern digital capabilities. However, a significant investment is now underway:

• Technology Modernization Fund (TMF) Investment: In September 2024, the TMF announced a $23.2 million investment to modernize the NLRB's case management infrastructure. The agency is replacing its legacy NxGen system with a cloud-based solution (GSA, 2024).
• AI Integration: The NLRB is integrating artificial intelligence to automate routine tasks, enhance data analysis, and improve case-processing efficiency, in line with executive orders on government efficiency and responsible AI use (Proskauer, 2025).
• Cybersecurity: The agency is participating in the Department of Justice's Zero Trust Architecture pilot and implementing advanced monitoring and data loss prevention measures (Proskauer, 2025).

Challenges and Controversies in NLRB Funding#

NLRB funding is often politicized, with debates over its role in labor relations:

Partisan Disagreements#

• Critics (Often Conservative): Argue the NLRB oversteps its authority, favoring unions over employers. They push for budget cuts, citing "wasteful spending" or a need to reduce federal overreach.
• Advocates (Often Liberal): Assert the NLRB is underfunded, pointing to backlogs and staffing shortages as evidence that workers' rights are being neglected. They call for increased funding to modernize the agency and handle growing caseloads.

Recent Battles#

• 2017–2020: The Trump administration proposed cutting the NLRB budget by 10–15%, though Congress ultimately rejected deep cuts.
• 2021–2023: The Biden administration pushed for modest increases, securing a $25 million increase in FY 2023, but Congress flat-funded the agency at$299.2 million for FY 2024 despite rising caseloads.
• 2025–2026: The second Trump administration proposed a 4.7% budget cut for FY 2026, seeking $285.2 million. The proposal reflects broader workforce optimization goals under Executive Order 14210, which directs federal agencies to optimize workforce efficiency (Proskauer, 2025).

The Gig Economy and New Challenges#

The rise of gig work (e.g., ride-share drivers, freelancers) has expanded the NLRB's jurisdiction, as workers seek to unionize. However, funding has not kept up with the need to interpret labor laws for non-traditional employment models. The agency also faces new challenges from landmark cases and evolving standards, including the 2023 Cemex decision that fundamentally changed the union organizing process by allowing unions to demand recognition based on claimed majority support (McNees, 2025).

The NLRB's Quorum Crisis and Leadership Transitions#

A significant development affecting NLRB operations in 2025–2026 was the agency's loss of a quorum on its governing board.

In January 2025, President Trump fired Board Member Gwynne Wilcox, leaving the five-member Board with only two members: David Prouty and Marvin Kaplan. Under the Supreme Court's 2010 New Process Steel v. NLRB decision, the Board requires at least three members to issue decisions. This unprecedented removal triggered months of legal challenges—courts ruled the firing was "blatantly illegal," and Wilcox was temporarily reinstated multiple times before the Supreme Court intervened (Brookings, 2025).

During the period without a quorum, the Board stopped issuing published decisions. Between January and August 2025, there were five months with no Board decisions—more than the four months without decisions in the entire prior history of the agency (December 1935 to December 2024) (Brookings, 2025).

However, most agency operations continued through regional offices. Regional directors retained authority to process representation and unfair labor practice petitions, and the NLRB continued closing cases at rates comparable to prior years (Brookings, 2025).

In December 2025, the Board regained a quorum with the appointment of two new Board members and new General Counsel Crystal Carey. In January 2026, Carey issued GC Memo 26-02, signaling a priority shift toward addressing the case backlog rather than revisiting precedent. She stated: "For too long we have been stuck in a cycle where justice to all parties is delayed in an effort to overturn precedent" (HR Law Watch, 2026).

The expanded remedies established under the Biden-era Thryv decision (compensating for "direct or foreseeable pecuniary harms" from unfair labor practices) remain in effect, though Republican Board members have signaled willingness to revisit the precedent once a full three-member Republican majority is seated (HR Law Watch, 2026).

Conclusion#

NLRB funding is the lifeblood of its mission to protect workers' rights and ensure fair labor practices. While the agency has adapted to budget constraints, historical underfunding—compounded by partisan debates, a growing caseload, and leadership transitions—has left it struggling to process cases efficiently. The agency's case intake rose 47% between 2021 and 2024, and union election petitions more than doubled over the same period, yet funding has remained largely flat in nominal terms and has declined significantly when adjusted for inflation.

Recent investments in technology modernization, including the $23.2 million TMF award for a new cloud-based case management system, offer hope for improved efficiency. However, proposed staffing cuts of 99 positions in FY 2026 raise questions about whether the agency can maintain service levels. For the NLRB to fulfill its role in today's evolving workforce, policymakers must prioritize sustainable, inflation-adjusted funding to hire staff, modernize technology, and reduce backlogs. Ultimately, a well-funded NLRB benefits both workers and employers by fostering stable, equitable labor relations.

References#

• National Labor Relations Board. (2024). Performance and Accountability Report FY 2024. https://www.nlrb.gov/reports/agency-performance
• National Labor Relations Board. (2024). Union Petitions Up 35%, Unfair Labor Practices Charge Filings Up 7%. https://www.nlrb.gov/news-outreach/news-story/union-petitions-up-35-unfair-labor-practices-charge-filings-up-7-in-the
• Government Accountability Office. (2021). NLRB: Actions Needed to Address Staffing Challenges and Improve Case Processing. GAO-21-356.
• Howard, O., Bauer, L., McNicholas, C., & Poydock, M. (2025). Tracking National Labor Relations Board actions through its administrative data. Brookings Institution. https://www.brookings.edu/articles/tracking-national-labor-relations-board-actions-through-its-administrative-data/
• Fox, J. & Smith-Banks, S. (2025). NLRB Releases FY 2026 Budget: Proposed Staffing Cuts and Focus on Efficiency and IT Modernization. Proskauer Labor Relations Update. https://www.laborrelationsupdate.com/2025/06/nlrb-releases-fy-2026-budget-proposed-staffing-cuts-and-focus-on-efficiency-and-it-modernization/
• Santucci, A., Saul, M., & McAvoy, R. (2025). The National Labor Relations Board 2024 Year-End Review. McNees Wallace & Nurick LLC. https://www.mcneeslaw.com/nlrb-2024-year-end-review/
• Leaf, R., Pedrow, B., & Ricketts, R. (2026). Return to Normalcy at the NLRB? – New General Counsel and Board Members Signal that Stability and Addressing Backlog Are Priorities. HR Law Watch. https://www.hrlawwatch.com/2026/02/10/return-to-normalcy-at-the-nlrb-new-general-counsel-and-board-members-signal-that-stability-and-addressing-backlog-are-priorities/
• Technology Modernization Fund. (2024). NLRB Case Management System Modernization. https://tmf.cio.gov/investments/