Trump proposes a 1% wage increase for federal employees, with certain law enforcement officers receiving additional compensation.
In a move that has been met with mixed reactions, President Trump has proposed a 1% pay increase for federal employees in 2026. This plan, however, comes with a freeze on locality pay, a decision that has sparked debate among various parties.
The National Treasury Employees Union, a prominent advocate for federal workers, has criticised the proposal, labelling it as "meager" and "inadequate." The Union endorses legislation that would provide all federal employees with an average 4.3% raise next year, a significant difference from the President's proposal.
The alternative pay plan, an annual practice across administrations, has been a topic of speculation this year, with no word from the President until recently. According to the White House document, certain federal law enforcement officers could receive a 3.8% base pay increase, in line with expected military raises. However, most other federal employees will only receive a 1% increase, with locality pay frozen.
The Federal Salary Council, in a report, has also confirmed the proposed base pay increases for certain federal law enforcement officers. The White House document further directs the Office of Personnel Management to decide which categories of federal law enforcement employees will receive the larger raises.
Trump must publish an executive order in December to formally implement the proposed alternative pay plan. It's worth noting that the President has previously proposed pay freezes in three of his four-year term, only to be overruled by Congress each time. In his final year in office, President Joe Biden issued a 2% average general schedule pay raise for 2025.
The proposal comes at a time when several law enforcement agencies are planning to surge hiring under the Trump administration, particularly related to immigration enforcement. Without the alternative pay plan in place, Trump stated that locality pay would increase an average of 18.88% in the first year, costing $24 billion.
In his Aug. 28 congressional notice, Trump wrote that federal employee pay must be based on merit, practical skill, and aligned with the budget and his administration's goals. The decision to freeze locality pay, however, has raised questions about the impact on federal employees' earning potential and morale.
As congressional appropriators have not included any employee pay language in their funding bills for fiscal 2026, the future of this proposal remains uncertain. The debate continues as federal employees, advocacy groups, and lawmakers weigh in on the proposed pay increases and the potential impact on the federal workforce.
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