On February 10, Rep. James Walkinshaw (D-VA) and Sen. Brian Schatz (D-HI) introduced the Federal Adjustment of Income Rates (FAIR) Act (H.R. 7480 / S. 3823), legislation that would provide federal employees with a 4.1 percent pay increase in 2027. FMA swiftly endorsed the legislation, which is comprised of a 3.1 percent raise in base pay and a 1.0 percent boost in locality pay, and serves as a marker for negotiations this year.

Feds received a 1 percent pay raise in 2026, after receiving significantly higher raises in 2024 (5.2 percent) and 2025 (4.6 percent). FMA eagerly anticipates what President Trump will include in his Fiscal Year 2027 budget request. Although required by statute to be delivered by the first Monday in February (February 2 this year), the document has not yet been released.

“Federal workers are the backbone of America, delivering the essential services and benefits that families have earned in every corner of our country,” said Rep. Walkinshaw in a statement.

Senator Schatz agreed, writing, “Whether it’s inspecting our food, conducting medical research, or caring for veterans, federal workers play an important role in our daily lives and deserve pay that reflects that. Our bill boosts wages to keep public service jobs competitive with those in the private sector and maintain a strong and talented federal workforce.”

In addition to FMA, the bill is endorsed by the National Treasury Employees Union (NTEU), the American Federation of Government Employee (AFGE), and many other organizations in the federal community.

To track the progress of the legislation, click here and here.