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VA back paid hundreds of fired employees, report claims, as agency says it'll 'ensure' bad actors can't return

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VA back paid hundreds of fired employees, report claims, as agency says it'll 'ensure' bad actors can't return

EXCLUSIVE: A right-leaning research group is claiming that the Department of Veterans Affairs under the Biden administration back paid more than $130 million to 1,700 people fired under a Trump-era law that allows for easier accountability for federal employees.

Through Freedom of Information Act filings, the America First Policy Institute will soon release the results of its probe.

Its investigation also found the VA reinstated more than 100 terminated employees who were fired for indiscretions ranging from negligence to sleeping on the job. Dozens of dismissals accounted for in documents reviewed by Fox News Digital did not have other specific offenses listed with them.

Following the passage of the 2017 law, the VA reportedly failed to bargain with its public employee union and was ordered to attend arbitration. Because of this, according to a source familiar, the VA could have been required to rehire all previously terminated employees, including those fired for “grievous misconduct” like patient abuse or harassment.

The agency ultimately reached a settlement with the union in 2023 and only 106 out of 1,700 employees offered financial compensation so far have been reinstated.

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GOP VETERAN LAWMAKER DROPS SCATHING ‘STOLEN VALOR’ LETTER TO WALZ AS TRUMP CAMP RIPS ‘FREAKISH TIMOTHY’

The Department of Veterans Affairs building is seen in Washington, D.C., on July 22, 2019.  (ALASTAIR PIKE/AFP via Getty Images)

The investigation found that of the more than 4,000 terminated employees, more than 1,700 received back pay or compensation.

At that rate, back pay to the entire group of former employees would total $300 million, a statement from AFPI read.

Former Trump VA Secretary Robert Wilkie said the current administration has “let down American veterans and taxpayers” with such actions.

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“Those fired for mistreating American veterans should not even be allowed near the VA, much less reinstated,” said Wilkie, now a fellow at AFPI’s Center for American Security. 

“Instead of litigating these baseless grievances or working with Congress to strengthen the Accountability Act, the Biden-Harris administration surrendered to the government employee union. Taxpayers and veterans who receive care from poor performers will pay the price.”

ARMY VET PREDICTS FIRST RED FLIP OF ‘POOREST’ NC DISTRICT SINCE 1883, CITING BIDEN-ERA ‘MALAISE’

A U.S. Army and Vietnam War veteran attends a Memorial Day event at the Santa Fe National Cemetery in Santa Fe, N.M. (Robert Alexander/Getty Images)

In 2017, under the previous administration, VA failed to bargain with AFGE on the implementation of this law — as legally required by VA’s contract. As a result, the agency was repeatedly court-ordered to reinstate fired employees, the source said.

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But current VA leadership is adamant that no employee previously fired for serious offenses like patient abuse has been reinstated.

“VA has ensured that bad actors cannot return to work and saved taxpayers hundreds of millions of dollars,” a department spokesperson told Fox News Digital. 

“The [Trump] administration’s implementation of the 2017 law was repeatedly struck down by the courts, putting VA at risk of having to rehire individuals who committed patient abuse, harassment, and criminal activity — and putting taxpayers on the hook for more than $1 billion.”

The spokesperson said the VA will continue to hold employees accountable who mistreat patients or commit other transgressions, and that anyone who is reinstated will be held to that high standard or be dismissed. 

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“Veterans trust VA at the highest rate in history — and we are delivering more care and more benefits to more veterans than ever before,” they said.

The law Trump signed, authored by Sen. Marco Rubio, R-Fla., was the Department of Veterans Affairs Accountability and Whistleblower Protection Act — meant to do what its title laid out.

It gave the agency new authority to terminate employees for poor performance or misconduct more quickly, and led to multiple grievances being filed by the public employee union AFGE.

Some of the reinstated employees were originally terminated for sleeping on the job, unauthorized access to employee medical records and failure to follow procedures, according to FOIA documents obtained by Fox News Digital.

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Video: Protests Against ICE in Minneapolis Continue Into Friday Night

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Video: Protests Against ICE in Minneapolis Continue Into Friday Night

new video loaded: Protests Against ICE in Minneapolis Continue Into Friday Night

transcript

transcript

Protests Against ICE in Minneapolis Continue Into Friday Night

Hundreds of protesters marched through downtown Minneapolis on Friday night. They stopped at several hotels along the way to blast music, bang drums and play instruments to try to disrupt the sleep of immigration agents who might be staying there. Mayor Jacob Frey of Minneapolis said there were 29 arrests but that it was mostly a “peaceful protest.”

The vast majority of people have done this right. We are so deeply appreciative of them. But we have seen a few incidents last night. Those incidents are being reviewed, but we wanted to again give the overarching theme of what we’re seeing, which is peaceful protest. And we wanted to say when that doesn’t happen, of course, there are consequences. We are a safe city. We will not counter Donald Trump’s chaos with our own brand of chaos here. We in Minneapolis are going to do this right.

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Hundreds of protesters marched through downtown Minneapolis on Friday night. They stopped at several hotels along the way to blast music, bang drums and play instruments to try to disrupt the sleep of immigration agents who might be staying there. Mayor Jacob Frey of Minneapolis said there were 29 arrests but that it was mostly a “peaceful protest.”

By McKinnon de Kuyper

January 10, 2026

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Trump says Venezuela has begun releasing political prisoners ‘in a BIG WAY’

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Trump says Venezuela has begun releasing political prisoners ‘in a BIG WAY’

NEWYou can now listen to Fox News articles!

President Donald Trump said Saturday that Venezuela has begun releasing political prisoners “in a BIG WAY,” crediting U.S. intervention for the move following last week’s American military operation in the country.

“Venezuela has started the process, in a BIG WAY, of releasing their political prisoners,” Trump wrote on Truth Social. “Thank you! I hope those prisoners will remember how lucky they got that the USA came along and did what had to be done.”

He added a warning directed at those being released: “I HOPE THEY NEVER FORGET! If they do, it will not be good for them.”

The president’s comments come one week after the United States launched Operation Absolute Resolve, a strike on Venezuela and capture of dictator Nicolás Maduro as well as his wife Cilia Flores, transporting them to the United States to face federal drug trafficking charges.

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US WARNS AMERICANS TO LEAVE VENEZUELA IMMEDIATELY AS ARMED MILITIAS SET UP ROADBLOCKS

Government supporters in Venezuela rally in Caracas.  (AP Photo)

Following the military operation, Trump said the U.S. intends to temporarily oversee Venezuela’s transition of power, asserting American involvement “until such time as a safe, proper and judicious transition” can take place and warning that U.S. forces stand ready to escalate if necessary.

At least 18 political prisoners were reported freed as of Saturday and there is no comprehensive public list of all expected releases, Reuters reported.

Maduro and Flores were transported to New York after their capture to face charges in U.S. federal court. The Pentagon has said that Operation Absolute Resolve involved more than 150 aircraft and months of planning.

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TRUMP ADMIN SAYS MADURO CAPTURE REINFORCES ALIEN ENEMIES ACT REMOVALS

A demonstrator holding a Venezuelan flag sprays graffiti during a march in Mexico City on Santurday. (Alfredo Estrella / AFP via Getty Images)

Trump has said the U.S. intends to remain actively involved in Venezuela’s security, political transition and reconstruction of its oil infrastructure.

The White House did not immediately respond to Fox News Digital’s request for comment.

President Donald Trump said Saturday that Venezuela has begun releasing political prisoners. (Mark Schiefelbein/AP Photo)

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Fox News Digital’s Morgan Phillips and Greg Norman-Diamond contributed to this reporting.

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Secretary of Defense Pete Hegseth tours Long Beach rocket factory

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Secretary of Defense Pete Hegseth tours Long Beach rocket factory

Secretary of Defense Pete Hegseth, who is taking a tour of U.S. defense contractors, on Friday visited a Long Beach rocket maker, where he told workers they are key to President Trump’s vision of military supremacy.

Hegseth stopped by a manufacturing plant operated by Rocket Lab, an emerging company that builds satellites and provides small-satellite launch services for commercial and government customers.

Last month, the company was awarded an $805-million military contract, its largest to date, to build satellites for a network being developed for communications and detection of new threats, such as hypersonic missles.

“This company, you right here, are front and center, as part of ensuring that we build an arsenal of freedom that America needs,” Hegseth told several hundred cheering workers. “The future of the battlefield starts right here with dominance of space.”

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Founded in 2006 in New Zealand, the company makes a small rocket called Electron — which lay on its side near Hegseth — and is developing a larger one called Neutron. It moved to the U.S. a decade ago and opened its Long Beach headquaters in 2020.

Rocket Lab is among a new wave of companies that have revitalized Southern California’s aerospace and defense industry, which shed hundreds of thousands of jobs in the 1990s after the end of the Cold War. Large defense contractors such as Northrop Grumman and Lockheed Martin moved their headquarters to the East Coast.

Many of the new companies were founded by former employees of SpaceX, which was started by Elon Musk in 2002 and was based in the South Bay before moving to Texas in 2024. However, it retains major operations in Hawthorne.

Hegseth kicked off his tour Monday with a visit to a Newport News, Va., shipyard. The tour is described as “a call to action to revitalize America’s manufacturing might and re-energize the nation’s workforce.”

Long Beach Mayor Rex Richardson, a Democrat who said he was not told of the event, said Hegseth’s visit shows how the city has flourished despite such setbacks as the closure of Boeing’s C-17 Globemaster III transport plant.

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“Rocket Lab has really been a superstar in terms of our fast, growing and emerging space economy in Long Beach,” Richardson said. “This emergence of space is really the next stage of almost a century of innovation that’s really taking place here.”

Prior stops in the region included visits to Divergent, an advanced manufacturing company in aerospace and other industries, and Castelion, a hypersonic missile startup founded by former SpaceX employees. Both are based in Torrance.

The tour follows an overhaul of the Department of Defense’s procurement policy Hegseth announced in November. The policy seeks to speed up weapons development and acquisition by first finding capabilities in the commercial market before the government attempts to develop new systems.

Trump also issued an executive order Wednesday that aims to limit shareholder profits of defense contractors that do not meet production and budget goals by restricting stock buybacks and dividends.

Hegseth told the workers that the administration is trying to prod old-line defense contractors to be more innovative and spend more on development — touting Rocket Lab as the kind of company that will succeed, adding it had one of the “coolest factory floors” he had ever seen.

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“I just want the best, and I want to ensure that the competition that exists is fair,” he said.

Hegseth’s visit comes as Trump has flexed the nation’s military muscles with the Jan. 3 abduction of Venezuelan President Nicolás Maduro, who is now facing drug trafficking charges to which he has pleaded not guilty.

Hegseth in his speech cited Maduro’s capture as an example of the country’s newfound “deterrence in action.” Though Trump’s allies supported the action, legal experts and other critics have argued that the operation violated international and U.S. law.

Trump this week said he wants to radically boost U.S. military spending to $1.5 trillion in 2027 from $900 billion this year so he can build the “Dream Military.”

Hegseth told the workers it would be a “historic investment” that would ensure the U.S. is never challenged militarily.

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Trump also posted on social media this week that executive salaries of defense companies should be capped at $5 million unless they speed up development and production of advanced weapons — in a dig at existing prime contractors.

However, the text of his Wednesday order caps salaries at current levels and ties future executive incentive compensation to delivery and production metrics.

Anduril Industries in Costa Mesa is one of the leading new defense companies in Southern California. The privately held maker of autonomous weapons systems closed a $2.5-billion funding round last year.

Founder Palmer Luckey told Bloomberg News he supported Trump’s moves to limit executive compensation in the defense sector, saying, “I pay myself $100,000 a year.” However, Luckey has a stake in Anduril, last valued by investors at $30.5 billion.

Peter Beck, the founder and chief executive of Rocket Lab, took a base salary of $575,000 in 2024 but with bonus and stock awards his total compensation reached $20.1 million, according to a securities filing. He also has a stake in the company, which has a market capitalization of about $45 billion.

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Beck introduced Hegseth saying he was seeking to “reinvigorate the national industrial base and create a leaner, more effective Department of War, one that goes faster and leans on commercial companies just like ours.”

Rocket Lab boasts that its Electron rocket, which first launched in 2017, is the world’s leading small rocket and the second most frequently launched U.S. rocket behind SpaceX.

It has carried payloads for NASA, the U.S. Space Force and the National Reconnaissance Office, aside from commercial customers.

The company employs 2,500 people across facilities in New Zealand, Canada and the U.S., including in Virginia, Colorado and Mississippi.

Rocket Lab shares closed at $84.84 on Friday, up 2%.

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