Message boards across the federal cyber world are buzzing with concern, and for good reason. It's been a challenging year for career Feds, with ongoing uncertainty about workforce reductions, potential RIFs, and now questions about 2026 compensation. After months of speculation about pay freezes and mixed signals from the administration, federal employees finally have some answers about their salary prospects, though this news creates additional complexity.

President Trump submitted his alternative pay plan to Congress on August 28th, proposing a 1% pay raise for most federal civilian employees in 2026, with locality pay frozen at current levels. Certain federal law enforcement officers, however, will receive a 3.8% increase, matching the military raise for 2026.

If this feels confusing and concerning, you're not alone. Let's break down what we know, what it means for your paycheck, and what might happen next.

2026 Federal Employee Pay Raise Breakdown: 1% vs 3.8% Increases

Under the Federal Employees Pay Comparability Act (FEPCA), presidents are required to submit an "alternative pay plan" by September 1st each year to prevent much larger formulaic increases from taking effect. Without this intervention, federal employees would have seen an average locality pay increase of 18.88%, plus a 3.3% across-the-board General Schedule raise, increases the current Administration has deemed "irresponsible" and unsustainable.

Instead, most federal employees are looking at a 1% increase with no locality pay adjustments. This represents the smallest raise since 2021, when Trump similarly proposed a 1% increase during his final year in office.

The Law Enforcement Exception

Here's where it gets complicated. The alternative pay plan carves out specific categories of federal law enforcement personnel to receive the full 3.8% military-aligned increase. The Office of Personnel Management (OPM) will work with agencies to determine exactly which law enforcement positions qualify for this higher raise.

The rationale? "To increase recruitment and retention in critical law enforcement roles and to ensure our great Federal law enforcement officers are treated fairly," according to the President's message to Congress.

Federal Employee Pay Raise Calculator: What 1% Means for Your 2026 Salary

Let's put real numbers to this 2026 proposal using our Sample Fed (SF) examples across different pay scales:

GS-12, Step 5 in Washington DC locality:

  • Current 2025 salary: $86,962
  • With 1% increase: $869.62 additional annually
  • Monthly boost: $72.47 before taxes

GS-12, Step 5 in Huntsville, AL locality:

  • Current 2025 salary: $78,592
  • With 1% increase: $785.92 additional annually
  • Monthly boost: $65.49 before taxes

GS-13, Step 8 in San Francisco locality:

  • Current 2025 salary: $129,239
  • With 1% increase: $1,292.39 additional annually
  • Monthly increase: $107.70 before taxes

GS-13, Step 8 in Richmond, VA locality:

  • Current 2025 salary: $108,945
  • With 1% increase: $1,089.45 additional annually
  • Monthly increase: $90.79 before taxes

GS-14, Step 10 in New York locality:

  • Current 2025 salary: $172,075
  • With 1% increase: $1,720.75 additional annually
  • Monthly raise: $143.40 before taxes

GS-14, Step 10 in Rest of US (RUS):

  • Current 2025 salary: $147,649
  • With 1% increase: $1,476.49 additional annually
  • Monthly raise: $123.04 before taxes

GS-15, Step 10 in Los Angeles locality:

  • Current 2025 salary: $203,700
  • With 1% increase: $2,037 additional annually
  • Monthly raise: $169.75 before taxes

We want to stress something important here: these calculations assume no locality pay increase. In recent years, locality adjustments have added 0.5% to 1% to overall raises, so freezing locality pay effectively reduces what many of you might have expected for 2026.

Federal Pay Raise History: Trump vs Biden Comparison for Context

The 2026 federal employee pay raise proposal isn't the first time President Trump has recommended modest increases for government workers. During his first term (2017-2021), Trump proposed pay freezes in three of the four years, but Congress overruled him each time, providing federal employee salary increases between 1.4% and 2.6%.

Here's the recent federal pay raise history:

  • 2026: 1% proposed (Trump's current proposal)
  • 2025: 2% average (Biden's final year)
  • 2024: 5.2% average (largest federal pay raise since 1980)
  • 2023: 4.6% average government employee increase
  • 2022: 2.7% average federal worker raise
  • 2021: 1% (Trump's proposed amount, enacted)
  • 2020: 3.1% (after Congress overrode 1% proposal)
  • 2019: 1.9% (after congressional intervention)

The pattern is clear: initial presidential proposals often get modified through the congressional appropriations process.

The 2026 Pay Gap Reality

The 2026 federal employee pay raise proposal must be viewed against the backdrop of persistent government worker salary gaps. The Federal Salary Council reported in 2024 that federal employees on average earned 24.72% less than their counterparts in similar private sector jobs. This "federal pay gap" is the foundation for FEPCA's formula-driven approach to government salaries, which has been consistently overridden by alternative pay plans from presidents of both parties.

Without presidential intervention for 2026, the statutory formula would have provided much larger federal employee salary increases to help close this gap. The 18.88% average locality pay increase mentioned in Trump's alternative pay plan reflects years of accumulated private sector wage growth that federal government salaries haven't kept pace with.


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Will Congress Override the 2026 Federal Pay Raise Proposal?

Here's what every federal employee should understand: this is not the final word on 2026 pay raises.

The alternative pay plan is just the President's opening position. Congress has the authority to override these proposals through the annual appropriations process. Congressional appropriators have not yet included any employee pay language in their funding bills for fiscal 2026, leaving room for negotiation.

Key dates to watch:

  • December: Trump must publish an executive order formally implementing the plan (if unchanged)
  • Through December: Congressional appropriations process continues
  • End of calendar year: Final appropriations bills must be signed to override the alternative pay plan
Federal Employee Union Response

The National Treasury Employees Union (NTEU) called Trump's proposal "meager" and "inadequate," advocating for the 3.8% law enforcement increase to be extended to all federal employees. NTEU has endorsed legislation providing a 4.3% average raise for all federal workers in 2026.

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

Common Questions About the 2026 Federal Pay Proposal

We've been serving federal employees for 37 years, and the same questions keep coming up whenever pay proposals are announced. Let us address the most common ones:

"What exactly is my pay raise going to be in 2026?" President Trump has proposed 1% across-the-board for most federal civilian employees, with no locality pay adjustment. Some law enforcement personnel may receive up to 3.8%.

"When will we know for sure what our raise will be?" Congress has until December to override Trump's proposal through the appropriations process. If they don't act, Trump must publish an executive order in December implementing the 1%.

"Can Congress actually change this?" Absolutely. During Trump's first term, Congress increased his proposed raises three out of four times. History suggests there's room for negotiation.

"How do I figure out what this means for my actual paycheck?" Take your current base salary and multiply by 0.01. A GS-13 earning $90,000 would see about $900 more per year, or roughly $75 per month before taxes.

"What happened to locality pay increases?" Trump's proposal freezes locality pay at 2025 levels. Without this freeze, locality increases would have averaged nearly 19% - reflecting years of accumulated private sector wage growth that federal salaries haven't matched.

Planning Around Pay Uncertainty: What You Can Control

Given this uncertainty around 2026 raises, here's our practical advice based on four decades of helping federal employees navigate these situations:

  • Budget Conservatively: Plan around the 1% figure while hoping for congressional intervention. Don't count on a larger raise until it's law. We've seen too many federal families get caught planning on higher numbers that didn't materialize.
  • Law Enforcement Career Moves: If you're in law enforcement, pay close attention to OPM's forthcoming guidance on which positions qualify for the 3.8% increase. This differential could influence transfer decisions and career moves.
  • Retirement Timeline Impact: For those within 5-10 years of retirement, factor conservative pay growth into your high-3 salary calculations. Multiple years of modest raises compound in ways that can meaningfully impact your FERS or CSRS annuity.
  • Focus on What You Can Control: In an environment of constrained pay increases, promotions and career advancement become even more critical. This might be the time to pursue that next grade level or specialized assignment that's been on your radar.

Remember, federal employee pay decisions often reflect broader political and economic dynamics beyond just compensation policy. The 2026 federal pay raise represents just one year in your government career trajectory, so keep a long-term focus.

Get Educated with Our Free Federal Benefits Webinars

We know this has been an exceptionally challenging year for career federal employees. Between workforce uncertainty, potential RIFs, and now questions about compensation, you're dealing with stress that goes far beyond normal workplace concerns. The team at Serving Those Who Serve has been here for federal employees for 37 years, through multiple administrations and countless changes, and we're not going anywhere.

Our complimentary webinar series covers retirement planning, TSP strategies, and comprehensive benefits education specifically designed for career federal employees navigating uncertain times like these: register to join us for a session here. We understand the unique pressures you face, and we're committed to providing the education and support you need.

If you'd like to take your planning one step further with a 1-on-1 consultation about how pay uncertainty might affect your retirement timeline or overall financial picture, reach out to us at [email protected].

Remember: you've chosen to serve our country through your federal career, and that service matters. We're honored to serve you in return.

Know the process. Know your timeline. Know that you're not facing this alone.

Written by Dan Sipe. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of the author and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

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