What’s the Status of Pay Raises for Federal Employees In 2026? 

What’s the Status of Pay Raises for Federal Employees In 2026? 

As of June 2025, the outlook for a federal employee pay raise in 2026 is uncertain. President Trump’s fiscal year 2026 budget proposal includes a pay freeze for federal civilian employees, marking the first such freeze since 2013 . This proposal also suggests a 3.8% pay raise for military service members. .Fedweek+2Meritalk+2Meritalk+2

Earlier, in July 2024, the Office of Management and Budget (OMB) had advised federal agencies to plan for a 3% pay raise for civilian employees in January 2026 . However, this guidance was provisional and subject to change based on the President’s final budget decisions. Federal News Network+3Meritalk+3FedSmith.com+3

Additionally, Democratic lawmakers introduced the Federal Adjustment of Income Rates (FAIR) Act, proposing a 4.3% average pay raise for federal employees in 2026 . Historically, similar proposals have not been enacted into law. Government Executive+4FedSmith.com+4AFGE+4

The final decision on the 2026 federal pay raise will depend on negotiations between the executive branch and Congress. Federal employees should stay informed as the budget process unfolds in the coming months. FedSmith.com