The Fed15 Podcast: Closing the Pay–Housing Gap and What’s Ahead for the 2026 Pay Raise

Dan explores housing affordability challenges in major metro areas like the DMV, San Francisco, and New York City—where housing costs continue to far outpace federal pay increases. He breaks down the widening gap between pay and housing, and offers practical strategies for federal employees, including shared housing options, exploring emerging neighborhoods, leveraging agency-specific programs, government-backed mortgage options, and relocation opportunities. He also outlines financial planning moves, long-term considerations, and the importance of proactive housing security planning.

Katelyn follows with an overview of the 2026 federal pay raise outlook, detailing the White House’s proposal (a 1% across-the-board raise and a 3.8% increase for certain law enforcement officers) and OPM’s recommendation (a 3.3% across-the-board raise plus an average 18.88% locality adjustment, with some metro areas exceeding 20%). She explains how these figures were derived under the FEPCA formula, contrasts them with the President’s alternative plan, and discusses the broader planning implications for federal employees.