Washington, D.C., October 2, 2025
News Summary
The Trump Administration’s new federal pay adjustment plan proposes a 1.0% raise for most civilian federal employees in 2026 and a significantly higher 3.8% increase for specific federal law enforcement personnel. Despite the lack of anticipated locality pay increases, the plan suggests reclassifications into new higher-paying geographical areas. The announcement has sparked criticism over pay disparity and concerns regarding federal budgets amidst rising inflation affecting employees’ earnings.
Washington, D.C. – The Trump Administration has proposed a federal pay adjustment plan for 2026, featuring a 1.0% across-the-board raise for most civilian federal employees. The proposal also includes a more substantial increase of 3.8% for specific federal law enforcement personnel. This announcement was made on August 28, 2025, and has surprised many, as the initial federal budget for 2026 did not indicate any salary raise.
Under the proposed plan, locality pay for federal employees is not expected to rise in 2026, differing from the previous year. However, some federal employees may be reclassified into higher-paying geographical areas, which could affect their compensation. The Federal Salary Council has suggested the creation of 11 new locality pay areas, including Alexandria, LA, Greensboro-Winston-Salem-High Point, NC, Johnson City-Kingsport-Bristol, TN/VA, among others. These changes could impact the overall pay landscape for many employees.
Currently, federal employees are classified under the General Schedule (GS) Pay Scale, which includes 15 pay grades from GS-1 (the lowest) to GS-15 (the highest). Each pay grade comprises 10 steps, with each step representing approximately a 3% salary increase. Locality pay is determined based on the cost of living in various regions, utilizing data from the U.S. Bureau of Labor Statistics. Notably, federal employees working abroad are not eligible for locality pay adjustments.
Federal employees experienced a 2.0% overall pay increase in 2025, following higher increases in previous years, including 2.7% in 2022, 4.6% in 2023, and 5.2% in 2024. The last time a raise of 1% or less was issued to federal employees was in 2015. The proposed pay increase for law enforcement personnel aims to enhance recruitment and retention in these vital roles.
However, the disparity in pay raises between law enforcement personnel and other federal employees has drawn criticism from employee organizations that advocate for equal pay increases across all categories. Concerns regarding federal agency budgets under the proposed pay scheme have also surfaced, particularly in light of inflation’s impact on federal employees’ financial wellbeing.
Locality Pay Areas Proposed for 2026
- Alexandria, LA
- Greensboro-Winston-Salem-High Point, NC
- Johnson City-Kingsport-Bristol, TN/VA
- Kennewick-Richland-Walla Walla, WA
- Knoxville-Morristown-Sevierville, TN
- Rapid City-Spearfish, SD
- Roanoke, VA
- Syracuse-Auburn, NY
- Waco, TX
- Watertown-Fort Drum, NY
- Wichita-Winfield, KS
Key Features of the Proposed Pay Increase
| Feature | Details |
|---|---|
| Overall Pay Increase | 1.0% for most employees, 3.8% for law enforcement personnel |
| Locality Pay Adjustment | No expected increase, but reclassification possible |
| New Locality Pay Areas | 11 additional locality areas proposed |
| Last Raise of 1% or Less | 2015 |
| Previous Years’ Increases | 2.7% in 2022, 4.6% in 2023, 5.2% in 2024, 2.0% in 2025 |
FAQ Section
What is the proposed pay increase for most federal employees in 2026?
The proposed federal pay adjustment plan for 2026 includes a 1.0% across-the-board raise for most civilian federal employees.
What is the proposed pay increase for federal law enforcement personnel?
Certain federal law enforcement personnel may see a higher pay increase of 3.8%.
When was the proposal submitted?
The proposal was submitted by the Trump Administration on August 28, 2025.
Will locality pay for federal employees increase in 2026?
Locality pay for federal employees is not expected to increase in 2026, differing from the prior year.
How many new locality pay areas have been recommended for 2026?
The Federal Salary Council has recommended the establishment of 11 new locality pay areas for 2026.
Who has the authority to approve or modify pay increases?
The President and Congress have the authority to approve or modify pay increases.
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Additional Resources
- Federal News Network
- Wikipedia: General Schedule (US Civil Service Pay)
- FEDweek
- Google Search: Federal Pay Raise 2026
- GovExec
- Google Scholar: Federal Law Enforcement Pay Raise
- FEDagent
- Encyclopedia Britannica: US Federal Employee Pay
- My Federal Retirement
- Google News: 2026 Federal Employee Pay

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