Federal Employee Pay Raise 2026 Update: Trump’s 1% Plan vs. Congress

‍Federal employees will see a 1% pay raise in 2026 under President Trump’s alternative pay plan, with locality pay frozen at 2025 levels. Certain federal law enforcement personnel are set to receive a 3.8% increase, matching the military raise for that year. This page breaks down exactly what the 2026 federal pay raise means for your paycheck, historical context, and what might change during congressional negotiations.

According to OPM’s September 2025 release, the 1% proposed raise applies across most General Schedule (GS) grades, while law enforcement roles have a separate adjustment to support recruitment and retention.

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Federal Employee Pay Raise 2026 1% vs 3.8%

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Under the Federal Employees Pay Comparability Act (FEPCA), presidents must submit an "alternative pay plan" by September 1 each year to prevent formula-driven increases from taking effect. Without intervention, federal employees would have seen an average 18.88% locality pay increase plus a 3.3% across-the-board GS raise a level deemed unsustainable by the current administration.

Instead:

• Most federal employees: 1% pay raise, locality pay frozen.
  
  
• Certain law enforcement officers: 3.8% raise, aligned with military pay.
  
  

As reported by Federal News Network on October 2, 2025, this exception aims to improve recruitment and retention in critical federal law enforcement roles.

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Law Enforcement Exception

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The Office of Personnel Management (OPM) will identify which positions qualify for the 3.8% raise.

“To ensure our federal law enforcement officers are treated fairly,” stated President Trump in his letter to Congress.

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Federal Pay Raise Calculator: What 1% Looks Like

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Let’s translate the proposal into real numbers for sample GS grades and steps:

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Note: These figures assume no locality pay increase. Historically, locality adjustments have added 0.5–1% to total raises, so freezing locality pay reduces what many expected for 2026. Check out the Federal paycheck calculator.

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Also read - usps retroactive pay 2025

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Federal Pay Raise History: Trump vs. Biden

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Understanding historical trends helps put 2026 in context:

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Data from FedSmith indicates that presidential proposals often get modified through the congressional appropriations process.

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The 2026 Pay Gap Reality

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Federal salaries have long trailed the private sector. According to the Federal Salary Council 2024 report, federal employees earn on average 24.72% less than private sector counterparts. FEPCA’s formula is designed to close this gap, but alternative pay plans often reduce the statutory increases.

Without presidential intervention, the statutory formula would have delivered much higher raises, including the 18.88% locality adjustment that reflects accumulated private sector wage growth.

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Will Congress Override the 2026 Pay Raise Proposal?

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Congress can still adjust the final pay raise through the appropriations process. Key dates:

• December 2025: Trump must issue an executive order implementing the plan (if unchanged).
  
  
• Through December: Congressional appropriations negotiations continue.
  
  
• End of 2025: Final appropriations bills must be signed.
  

As reported by Federal News Network, history shows Congress frequently modifies presidential pay proposals.

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Learn more about - federal pay raise 2025

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Federal Employee Union Response

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The National Treasury Employees Union (NTEU) called Trump’s 1% proposal “meager” and advocates extending the 3.8% law enforcement raise to all employees.

“At the very least, the planned 3.8% average increase for military and federal law enforcement should be extended to all federal employees,” said NTEU President Doreen Greenwald.

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Planning Around Pay Uncertainty

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Even with uncertainty around the 2026 pay raise, federal employees can take practical steps:

1. Budget Conservatively: Plan using the 1% baseline, adjust if Congress intervenes.
   
   
2. Law Enforcement Career Moves: Track OPM guidance for qualifying positions.
   
   
3. Retirement Planning: Factor modest raises into high-3 salary calculations for FERS/CSRS.
   
   
4. Focus on Advancement: Promotions and career growth become more critical in low-raise years.

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Worried About How the 2026 Pay Raise Affects Your Retirement?

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Even a small raise (or freeze) can change your FERS high-3 calculation, pension income, and future retirement timeline.

Our advisors at Federal Pension Advisors help federal employees plan around pay changes so your retirement goals stay on track no matter what Congress decides.

Spots are limited for our free 2025 Federal Retirement Check-Up. Don’t wait until pay decisions are final secure your personalised analysis now.

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Key Takeaways

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• 2026 Federal Pay Raise: 1% for most, 3.8% for some law enforcement.
  
  
• Locality Pay: Frozen at 2025 levels.
  
  
• Congress: Can override or modify the plan through appropriations.
  
  
• Union Response: NTEU advocates for a higher, more equitable raise.
  
  
• Planning Advice: Budget, monitor OPM updates, and focus on career growth.
  
  

According to OPM and FedSmith data, staying informed and proactive is the best strategy for federal employees in 2026.

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FAQs

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1. Is there going to be a wage increase in 2026?

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Yes, a federal pay raise has been proposed for 2026. President Trump submitted an alternative pay plan to Congress, recommending a 1% pay increase for most federal civilian employees. Certain federal law enforcement personnel are eligible for a higher 3.8% raise, aligning with the military’s 2026 increase. However, Congress can still modify this proposal during the appropriations process, so the final raise may change.

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2. Are federal workers going to get a raise in 2025?

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Yes, federal employees received an average pay raise of 2% in 2025, under President Biden’s administration. This applied across most General Schedule (GS) levels, with locality pay adjustments included.

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3. What is the 2026 COLA for civil service?

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The Cost-of-Living Adjustment (COLA) for 2026 has not been officially announced yet. COLA is usually tied to inflation and Social Security adjustments. For federal employees, the proposed 1% raise in the Trump alternative pay plan effectively acts as the baseline increase, while locality pay is frozen at 2025 levels.GS scale

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4. Is GS-12 a high position?

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The GS-12 grade is considered a mid-to-upper level federal position. Employees at this level typically have several years of experience and may manage projects or small teams. Higher grades, like GS-13 to GS-15, involve more responsibility, leadership, and supervisory duties.

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