The FAIR Act proposes a 4.1% federal pay raise for federal employees in 2027. See details on the potential pay increase. If it doesn’t pass, any raise would probably be decided by an executive order signed by Trump.
2027 Federal Pay Raise Update: FAIR Act Proposes 4.1% Increase for Federal Employees
A new version of the FAIR Act has been introduced in Congress, proposing a 4.1 percent pay raise for federal employees in 2027. The 2026 annual pay bump was 1.0% with no increase in locality pay, and was decided when president Donald Trump signed an executive order at the end of 2025. (Some Law Enforcement Officers saw a raise of 3.8 percent,) The FAIR Act proposed earlier that year called for 4.3% – significantly lower than what actually happened. This article will examine the timeline of pay raises for federal agency workers, what past iterations of the FAIR act have indicated for the actual adjustment, and what the most recent bill might mean for next year’s raise.
View the 2026 General Schedule Pay Scale Tables
Introduction to the FAIR Act and Federal Pay Raises
The legislation’s proposal for a 4.1% pay raise for federal employees in 2027 highlights ongoing efforts to ensure fair compensation from certain lawmakers. The aim is to provide a competitive federal pay scale that attracts and retains skilled individuals, reflecting a broader commitment to supporting dedicated public servants. While the late Gerry Connolly had made it his mission to fight for the government’s workforce, with the legislation being a piece of that overall effort, other representatives on Capitol Hill have continued the annual tradition and introduced the bill once more.
Historical Chart of Legislation’s Impact on Federal Pay
| Year of Pay Raise | Prior Year’s FAIR Act | Prior Year’s Budget Recommendation | Actual Annual Raise (avg.) – President |
| 2017 | 5.3% | 1.6% | 2.6 – Obama |
| 2018 | 3.2% | 1.9% | 1.6 – Trump |
| 2019 | 3.0% | 0.0% | 1.9 – Trump |
| 2020 | 3.6% | 3.1% | 3.1 – Trump |
| 2021 | 3.5% | 1.0% | 1.0 – Trump |
| 2022 | 3.2% | 2.7% | 2.7 – Biden |
| 2023 | 5.1% | 4.6% | 4.6 – Biden |
| 2024 | 8.7% | 5.2% | 5.2 – Biden |
| 2025 | 7.4% | 2.0% | 2.0 – Biden |
| 2026 | 4.3% | 0.0% | 1.0 – Trump |
| 2027 | 4.1% | ?? | ?? |
The FAIR Act: A Brief History of Legislative Efforts
The Federal Adjustment of Income Rates (FAIR) Act was first introduced by Rep. Gerry Connolly (D‑VA) in 2016. This Act was designed to institute a legislatively mandated raise for federal pay. Connolly’s initial vision sought to ensure fairness and attract qualified individuals to needed positions across agencies. He reintroduced the bill each subsequent year until his passing in 2026.
Continuation of the FAIR Act After Connolly’s Passing in 2026
Sen. Brian Schatz (D‑HI) has taken up the mantle, continuing to introduce a version of the legislation. It continues the tradition of attempting to provide a substantial salary boost for federal employees. Schatz’s commitment ensures the ongoing advocacy for civilian employee compensation.
Proposed Pay Increase Remains Unlikely to Pass
Despite its repeated introduction, the bill has never successfully passed in any year since its inception, not even making it on the floor for a vote let alone making it to the Senate or White House. It functions more as a symbolic gesture, indicating support for public servants. Rather than a reliable predictor of the final raise, it signifies congressional advocacy for federal compensation and marks a ceiling as for what to expect the following year. The actual salary boost has never been equal to or higher than the percentage suggested in the proposed legislation.
The Federal Pay Raise Timeline: Key Events and Processes
The FAIR Act is usually introduced early in the year, setting an initial proposed raise, such as the 8.7% for 2025. This legislation is only the first step in a year-long process that ultimately determines the raise for federal workers.
White House Budget Recommendation and Its Impact
Released typically between March and May, the White House budget recommendation historically stands as the strongest indicator of the finalized raise (see chart above). This budget proposal often reflects the administration’s priorities and financial planning for the upcoming year. Only in 2016, 2017, 2019, and 2026 has the figure differed than what the budget suggested.
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Congressional Budget Discussions and Legislative Influence
During congressional budget discussions, annual pay adjustments might be mentioned, but it’s rarely altered through legislation (only once in recent history, as a reaction to the 2018-2019 shutdown.) While Congress can debate and propose changes, the ultimate decision usually remains with the executive branch as it has veto power even if a law were to pass.
Alternative Pay Plan for Federal Workers
By the end of August, an alternative pay plan is required if the President intends to deviate from statutory formulas regarding the federal pay raise. This plan often reaffirms the White House’s earlier recommendation. It serves as a formal notice of any intended differences and allows for adjustments if deemed necessary. Without this, automatic raises would go into effect, resulting in salaries increasing by over 20 or even 30%.
President Trump Signs Executive Order, Finalizing the Raise
In December, an executive order usually makes the raise official for the upcoming year. This order almost always mirrors the White House budget number, solidifying the administration’s stance on federal employee compensation. As with the previous year, it is far more likely that Trump’s administration makes the 2027 pay raise final with an executive order or instills a federal pay freeze by choosing to not implement a salary adjustment for workers, effective the first full pay period of the calendar year.
Implications of the 4.1% FAIR Act Proposal for 2027
The historical precedent shows that the FAIR Act never determines the final outcome, but gives feds a starting point for planning for their future finances.
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Final Thoughts on the 2027 Pay Raise for Federal Employees
The proposed 4.1% raise is a positive sign at face value, but the ultimate federal pay raise for 2027 will depend on several factors. An executive order will likely finalize the raise for most civilian federal employees if there isn’t a pay freeze. Want to learn more about financial planning around your federal retirement benefits package? Schedule a free consultation with a financial planner that works with federal employees.
