Bill > S126

This bill, known as the Federal Adjustment of Income Rates (FAIR) Act, proposes pay increases for federal employees in 2026. Specifically, the bill calls for a 3.3 percent increase in basic pay rates for employees under statutory pay systems, which are predefined compensation structures for federal workers. For prevailing rate employees (typically blue-collar workers whose wages are set based on local labor market rates), the bill also mandates a 3.3 percent increase, to be applied to the previous fiscal year's pay rates. Additionally, the bill provides for a 1 percent increase to locality pay, which adjusts federal salaries based on the cost of living in different geographic areas. These pay adjustments are designed to help federal employees keep pace with inflation and regional economic variations, ensuring competitive compensation across different regions and job categories.

Military Affairs and Security

https://www.congress.gov/bill/119th-congress/senate-bill/126/all-info