
Federal Managers Association
On August 26, 2026, President Donald Trump formalized an alternative compensation plan calling for a pay freeze for most civilian federal employees for 2027. The alternative compensation plan also prevents locality pay increases for feds in the upcoming year. FMA expressed deep disappointment with the administration's decision and continues to support the effort in Congress to provide a reasonable 4.1 percent pay raise with the Federal Adjustment of Income Rates (FAIR) Act (H.R. 7480 / S. 3826), proposed by Rep. James Walkinshaw (D-VA) and Sen. Brian Schatz (D-HI).
No 2027 Federal Pay Raise: Trump Issues Alternative Pay Plan With Civilian Pay Freeze
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.”
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