President Biden proposed a 4.6 percent pay raise for 2023, the largest increase in twenty years. The raise is split between a 4.1 percent increase to basic pay and an average 0.5 percent increase to locality pay. While it is less than the 5.1 percent raise FMA supported as part of the FAIR Act, particularly in light of inflation and increases to health insurance premiums, we are pleased with the 4.6 percent across-the-board boost for 2023.

Congress could override the 4.6 percent raise, which Biden formalized in his alternative pay plan released in August, but that appears highly unlikely. Rather, we expect President Biden will issue an executive order later this month to finalize the pay plan by the end of the year. The Office of Personnel Management will then publish the pay tables for the new year.

Going forward, FMA will continue to work with Rep. Gerry Connolly (D-VA) and Sen. Brian Schatz (D-HI), the legislators who have historically introduced the FAIR Act, for an even better raise in 2024.