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HR 493119th CongressIntroduced
FAIR Act
Introduced: Jan 16, 2025
Sponsor: Rep. Connolly, Gerald E. [D-VA-11] (D-Virginia)
Financial Services
Standard Summary
Comprehensive overview in 1-2 paragraphs
The FAIR Act (Federal Adjustment of Income Rates Act) would lock in pay increases for federal employees in calendar year 2026. Specifically, it would set a 3.3% raise to base pay for workers covered by statutory pay systems and for prevailing-rate (wage area) employees, and it would add a 1% increase to locality pay. Taken together, these adjustments amount to an overall roughly 4.3% pay increase for many federal employees in 2026. The bill also bypasses the normal wage-survey process for prevailing-rate pay in 2026, effectively guaranteeing the 3.3% increase for that year. The short title and core adjustments are codified in sections drawing on existing pay authorities in Title 5 of the U.S. Code.
Key Points
- 1Applies to calendar year 2026 and targets federal pay under statutory pay systems and prevailing-rate (wage area) pay structures.
- 2Statutory pay systems: basic pay rates would increase by 3.3% for 2026.
- 3Prevailing-rate employees: basic pay rates would also increase by 3.3% for 2026, with the bill waiving the usual wage-survey requirements for that year.
- 4Locality pay: additional 1% increase to locality-based pay adjustments in 2026.
- 5Combined effect: for most employees, total pay (base plus locality) would rise by about 4.3% in 2026. The act references 5 U.S.C. provisions (5302, 5303, 5304, 5343, 5348, 5349) to implement these changes.
Impact Areas
Primary: Federal civilian employees covered by statutory pay schedules and prevailing-rate (wage area) pay plans, including those who receive locality pay adjustments.Secondary: Federal agencies and departments that administer pay, budgets, and human resources; and, by extension, taxpayers who fund federal compensation.Additional impacts:- Administrative: bypassing the 2026 wage-survey requirement could affect how pay is calibrated against local labor markets that year.- Budgetary: increased payroll costs in 2026, potentially affecting annual appropriations and budget planning, since there is no listed offset or funding mechanism in the bill.
Generated by gpt-5-nano on Oct 2, 2025