House and Senate Democrats have reintroduced the Federal Adjustment of Income Rates (FAIR) Act, proposing a 4.1% across-the-board pay raise for federal employees in 2027, as lawmakers renew a push to boost federal salaries amid private-sector competition and rising costs.
- Proposal: The FAIR Act would provide a 4.1% federal civilian pay raise next year, according to Federal News Network.
- Who it affects: The bill targets federal employees broadly, including those paid under the General Schedule (GS) and other pay systems covered by annual federal pay adjustments.
- Status: The measure has been reintroduced in both the House and Senate and must move through the standard legislative process before any pay change could take effect.
- Rationale cited by supporters: Backers say the raise is intended to help federal pay remain competitive with private-sector wages and keep up with cost-of-living pressures, Federal News Network reported.
- What’s not in the bill (so far): The report did not indicate any finalized locality pay breakdowns tied to the 4.1% figure; locality adjustments are often addressed separately in the annual pay process.
- Timing: If enacted, the raise would apply to the next calendar year’s federal pay schedule, aligning with the typical January effective date for annual adjustments.
Brief context
The FAIR Act is a recurring Democratic proposal that typically seeks to set a specific annual federal pay raise figure through legislation. In practice, federal pay adjustments can also be set through the annual appropriations process or by presidential action under existing pay authorities, depending on what Congress passes and what the administration implements.
Federal News Network reported that Democrats are again framing the bill as a response to ongoing federal pay concerns, including recruitment and retention challenges tied to pay competitiveness. The reintroduction restarts the process but does not guarantee enactment; the bill would still need committee action, passage in both chambers, and the president’s signature.
For employees trying to estimate how a 4.1% raise could affect take-home pay, locality-adjusted increases and deductions (retirement, FEHB, TSP, taxes) can change the final impact. (For reference tools, see FedInfo’s pay resources: https://fedinfo.org/)
Source: Federal News Network — “Democrats reintroduce bill to give federal employees a 4.1% pay raise next year” (Feb. 2026), https://federalnewsnetwork.com/federal-newscast/2026/02/democrats-reintroduce-bill-to-give-federal-employees-a-4-1-pay-raise-next-year/