Project 2025's Union Ban Could Cost Workers $77 Billion Annually

Potential Economic Impact of Project 2025's Union Ban

Donald Trump's Project 2025 has sparked significant concern due to its potential implications for working Americans. A key component of this plan includes proposals that could significantly transform the federal landscape, impacting economic stability, healthcare, retirement benefits, and workers' rights. A detailed 900-plus page agenda highlights changes that could reduce the influence of the working class.

A report by EPI Action, a nonpartisan group, delves into the financial ramifications of one such proposal — the prohibition of public sector unions like AFSCME. Their analysis suggests that such a ban could lead to a staggering $77 billion annual loss in wages and benefits for U.S. workers.

The report examines two primary consequences of banning public sector unions. Firstly, over 3.9 million unionized workers would directly experience a decrease in income. The loss in union-negotiated wages and benefits for these individuals is estimated at $37.9 billion annually.

Secondly, the analysis highlights a "spillover" effect. This phenomenon occurs because remaining unionized workers could witness a reduction in their compensation due to competition with an increasing number of nonunion workers. This indirect impact is estimated to cost an additional $7.2 billion.

Furthermore, even nonunion workers are not immune to these changes. They benefit from what experts call the "threat" effect — unions' ability to indirectly elevate industry-wide wages. An illustrative example is the auto industry, where, following a successful United Auto Workers (UAW) agreement in 2023, nonunion manufacturers increased wages for their employees. The erosion of this effect could result in a $31.8 billion economic loss.

Altogether, the proposed ban on public sector unions is projected to cost workers around $77 billion annually, posing a significant burden on the nation's workforce.