On December 18, President Trump issued an executive order finalizing a 1 percent pay raise in 2026 for federal employees. The executive order aligns with the alternative pay plan Trump outlined in August 2025, and the raise took effect for the first full pay period after January 1, 2026.

The White House provided pay tables to specify the pay rates for various fed schedules. Additionally, unlike recent years, the 2026 raise does not include an increase in locality pay.

When the proposed raise was first announced, FMA National President Craig Carter said, “A one percent raise is better than nothing, and given the lack of discussion about pay all year we had been bracing for a pay freeze. Regrettably, a one percent pay raise is nowhere near the rising inflation levels. And it would ensure feds would fall even further behind their private sector counterparts when it comes to compensation, when feds already make almost 25 percent less.”

FMA strongly supported the 3.8 percent raise for the uniformed military, finalized in the FY 2026 National Defense Authorization Act, and argued federal employees deserve the traditional, long-established pay parity with military service members.

“Maintaining the traditional pay parity between federal employees and the uniformed military is essential to ensuring fairness, stability, and the recruitment and retention of a highly skilled civilian workforce,” Carter wrote. Federal employees take the same oath to the Constitution and work side by side with military personnel in supporting national security, public safety, and critical government services, and their contributions should be valued equally.

“Breaking the long-standing practice of parity undermines morale and creates unnecessary disparities, sending the wrong message about the worth of civilian service. Upholding this principle not only honors the shared commitment of both groups but also strengthens the government’s ability to attract and retain the talent necessary to meet its mission.

“Federal employees deserve to be treated with respect for their efforts and the dedicated work they perform. It is not too much to ask that, in return, feds be given the ability to maintain a living wage that keeps up with inflation and that provides for them and their families,” Carter concluded.

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 2025.

We anticipate Rep. James Walkinshaw (D-VA) and Sen. Brian Schatz (D-HI) will reintroduce the Federal Adjustment of Income Rates (FAIR) Act later this month, legislation to seek a more reasonable pay raise for 2027. FMA will work with these and other legislators to provide the best possible pay raise for feds in the coming year.