Federal employees will see a pay freeze in 2026 based on President Trump’s initial budget request for Fiscal Year 2026. The “skinny” budget proposal, released on Friday, May 2, is a precursor to a more robust budget request expected to be unveiled later this month. Additional federal employee issues are anticipated to be included in the more detailed budget proposal. A pay freeze would prevent salaries from growing in line with inflation, and the Federal Salary Council reported in November 2024 that federal workers already earn nearly 25 percent less than their private sector counterparts.

Feds received a 4.6 percent pay raise in 2023, followed by a 5.2 percent boost in 2024 and a 2 percent raise for this year. While the administration’s budget request does not include any mention of a pay raise, the budget request is only one piece of the process for determining a pay adjustment for federal employees. Congress typically addresses a pay raise as part of the Financial Services and General Government Appropriations funding bill. Separately, FMA has strongly endorsed the Federal Adjustment to Income Rates (FAIR) Act (H.R. 493 / S. 126). The FAIR Act, sponsored by Rep. Gerry Connolly (D-VA) and Sen. Brian Schatz (D-HI), would provide an average 4.3 percent pay raise in 2026.

FMA will continue to urge Congress to provide for a fair and reasonable pay raise that reflects the needs of the workforce for 2026. We will pursue efforts to provide federal employees the traditional pay parity with whatever is proposed for the uniformed military, honoring the commitment to the country equally.