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The Department of Labor is right to make union spending transparent

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by Brigette Herbst, opinion contributor - 05/09/26 2:00 PM ET

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by Brigette Herbst, opinion contributor - 05/09/26 2:00 PM ET

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FILE – In this May 7, 2020, file photo, the entrance to the Labor Department is seen near the Capitol in Washington. (AP Photo/J. Scott Applewhite, File)

In recent weeks, the U.S. Department of Labor has experienced turmoil in the leadership ranks. But, amidst the controversies, the department has done remarkable work advancing transparency when it comes to how $11 billion per year in union dues are spent — especially on political activities.

At a time when public trust in major American institutions is declining, transparency matters more than ever. Corporations disclose financial information to shareholders, nonprofits file public tax forms, and government agencies release spending reports. Labor unions, which hold significant political power, should not be exempt from meaningful public scrutiny.

In February, the department released a data visualization tool for union reporting forms. The tool provides union members and the public alike with a simple way to see how union dues are spent. Unions already file what is known as an LM-2 form, but these are complicated and overly technical for most union members and the general public to read.

As recently as 2020, unions reported to the Department of Labor that they spent $791 million on politics and lobbying. Meanwhile, many workers understandably assume their dues primarily fund representation: negotiating contracts, handling grievances and benefits. This is where the LM-2 comes in, which unions are required to file 2 with the Office of Labor-Management Standards.

The form includes spending, assets and major receipts, to ensure union members are informed about their union’s financial condition. LM-2s also disclose relationships with affiliated groups, including political action committees, advocacy groups and other organizations that engage in electoral or issue-based campaigns. Given the amount unions spend on political activities, reporting and transparency are increasingly important.

For example, in 2023 the Service Employees International Union spent 17 percent of its budget on political activities and lobbying and 16 percent on benefits and union administration. In other words, a labor union with more than 2 million members, spent nearly as much on partisan political activities as it did on protecting workers.

These partisan activities may not appeal to all union members. After all, 28 percent of union members identify as “center” on the ideological spectrum, suggesting a meaningful portion may not share the same political preferences as union leadership.

None of this is inherently improper. Unions, like many organizations, pursue some goals through political advocacy. But, transparency is key, and union members and the voting public alike have the right to know what organizations influence election outcomes — including when those organizations are labor unions.

And the data show they want it, a U.S. Chamber of Commerce study shows that 85 percent of Americans polled, support “requiring unions to provide clearer financial disclosures on how dues are spent.” The new Department of Labor dashboard does just that.

The LM-2 has long required disclosure of union financial activity, including political spending. But for most workers, accessing and interpreting these filings is not realistic. The forms can span hundreds of pages, filled with line items that require time, context, and expertise to fully understand. As a result, union spending has technically been publicly available, but complex and out of reach — limiting the usefulness of the form. The department’s new dashboard makes the information accessible, searchable, and usable for ordinary Americans, not just specialists or regulators.

The public and union members alike deserve access to clear information about organizations that play a major role in American politics and public policy. The Labor Department’s new dashboard is a common-sense step toward making union spending transparent, accessible, and open to the public.

Union members should use this dashboard, because they deserve to know where their $11 billion per year is being spent. Greater visibility into these funds empowers workers and strengthens public trust in powerful public institutions like labor unions.

Brigette Herbst is executive director of Gevura Fund.

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