Feds In Line for Smallest Pay Raise for 2021 Under Trump Proposal

In a move that surprised many, under an alternative pay plan submitted to Congress, President Trump is calling for a one percent pay raise for the majority of federal employees for 2026.

There is one notable exception.

The plan calls for a number of federal law enforcement officers to receive a 3.8 percent pay raise, in line with the military. OPM was directed to work with executive departments and agencies to identify the categories of law enforcement personnel eligible for the pay increase. The thinking behind the larger law enforcement increase is that it will “increase recruitment and retention in critical law enforcement roles and to ensure our great Federal law enforcement officers are treated fairly.”

Most civilian federal employees are staring at their smallest pay increase in four years for next year, with locality frozen as well.

Lowest Since 2021

The one percent bump is the lowest since January 2021, in the last year of the first Trump administration. More recently, most white collar workers received raises of 2.7 percent in 2022, 4.6 percent in 2023, 5.2 percent in 2024, and 2 percent in 2025. 

The White House is required to submit an alternative pay plan in August, to offset potential increases under the 1990 Federal Employees Pay Comparability Act (FEPCA). 

The president wrote that without the alternative pay plan, under FEPCA, federal employees would be in line for 3.3 percent across the board increase, and an additional locality pay raise of 18.88 percent. 

“Federal agency budgets cannot sustain such irresponsible increases,” stated President Trump. “My alternative pay plan will further my Administration's efforts to create an excellent and efficient Federal workforce of the highest caliber while maintaining fiscal responsibility.” 

Federal labor unions voiced their disapproval. 

“At the very least, the planned 3.8 percent average increase for military and federal law enforcement should be extended to all federal employees,” said National Treasury Employees Union (NTEU) national president Doreen Greenwald. “Even better, NTEU has endorsed legislation that would give all federal employees an average 4.3 percent raise next year, and we will continue to urge Congress to override the president’s below-market raise and give all federal employees a fair increase in January.”

Now this is not final. Congress can weigh in by including language on employee pay in government funding bills. The president must also publish an executive order in December formally implementing the pay plan. 

And it also comes as the Federal Salary Council reported that in 2024, federal employees earned on average, nearly 25 percent less than private sector counterparts in similar occupations.