
Federal Managers Association
By Ian Smith, FedSmith
President Trump has issued the alternative pay plan letter for the 2027 federal pay raise, or in this case, a pay freeze for most federal employees. He proposed keeping base pay and locality pay frozen at 2026 rates. The letter, dated August 26, 2026, states that the president has determined that “base pay and locality pay for civilian Federal employees will not change from the 2026 rates.”
Unlike last year, when Trump surprised federal employees with a 1% raise despite a budget that was silent on civilian pay, the 2027 alternative pay plan letter follows through on the White House’s 2027 budget proposal, which did not include a pay raise for federal civilian employees.
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