A Democratic redistricting plan after the 1980 Census split up the 4th District, with only about 15% of its area remaining and added to various areas from other districts; Derwinski and Republican congressman George M. O'Brien were placed in the same district, and O'Brien won the 1982 primary on the strength of having more of his previous district included in the new change. After Derwinski's loss, President Ronald Reagan picked him to be Counselor to the State Department. In 1987, Reagan picked him to be Under Secretary of State for Security Assistance, Science and Technology, where he served until the end of Reagan's term. Not long after that, he was picked by George H.W. Bush to head the VA.