Congressman James Walkinshaw (D-VA) and Senator Brian Schatz (D-HA) yesterday introduced legislation that would give federal employees a 4.1 percent pay increase in 2027.
If passed, the Federal Adjustment of Income Rates (FAIR) Act would provide federal workers with a 3.1% across-the-board increase in basic pay next year plus an average 1% increase in locality pay.
“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. “They serve communities nationwide and have done so honorably even as the Trump administration has launched unprecedented attacks on the civil service. The FAIR Act delivers a much-needed 4.1 percent pay raise in 2027 so federal pay can keep pace with the cost of living and public service careers remain competitive.”
“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,” said Senator Schatz. “Our bill boosts wages to keep public service jobs competitive with those in the private sector and maintain a strong and talented federal workforce.”
The lawmakers state that according to the Federal Salary Council, federal employees earned roughly 27 percent less on average than employees in the private sector.
The legislation has been proposed in years past, but has not got traction. The bill is backed by several groups that represent federal employees.
“Federal employees have long faced a significant gap in salaries as compared to their private-sector counterparts — nearly 27% lower on average nationwide — making it hard to recruit and retain the dedicated public servants our nation deserves,” said Everett Kelley, National President of American Federation of Government Employee (AFGE). “That’s why American Federation of Government Employees supports Senator Schatz’s reintroduction of the FAIR Act, which would provide a meaningful pay adjustment and help close this pay gap by delivering a 4.1 % raise in January 2027. Fair pay isn’t just good for federal workers — it’s also good for the quality of government services and the people we all serve.”
“Federal employees live and work in every state and congressional district across the country providing critical services for our nation and the American people,” said Doreen Greenwald, National President of the National Treasury Employees Union (NTEU). “However, their pay falls far below that of individuals in comparable jobs in the private sector. NTEU applauds Senator Schatz and Representative Walkinshaw and the many Members of Congress who cosponsored this bill for supporting federal workers receiving a fair pay increase in 2027 to ensure that employees can keep up with the costs of living and that the federal government can recruit and retain talented workers.”
In 2026, federal employees received a 1 percent across-the-board pay increase. Federal workers received a 4.6 percent pay raise in 2023, 5.2 percent in 2024, and 2 percent in 2025.
To read the full text of the bill, go here.