President Trump Proposes 2027 Federal Pay Freeze, 3.8% Raise for Law Enforcement

President Trump proposed a freeze on base and locality pay for most civilian federal employees in 2027. However, certain federal law enforcement personnel would receive a 3.8 percent raise to boost recruitment to those positions, as happened last year.

In a letter to Congress outlining his alternative pay plan, the President “decided to set at zero the pay adjustment to be made for the 2027 pay year” saying that the decision will “maintain fiscal responsibility without harming the government’s ability to recruit and retain well qualified employees.”

September 1 Deadline

Under law, the president is required to issue an alternative pay plan by September 1 to prevent larger formulaic raises from taking effect the following year under the Federal Employees Pay Comparability Act (FEPCA).

Without President Trump's alternative plan, the letter says locality pay would rise by an average of 20.6 percent, along with a 3.1 percent across-the-board increase. 

Congress could override the decision typically through the appropriations process, but there has been little indication that lawmakers will do so. The House Appropriations Committee passed the Financial Services and General Government (FSGG) spending bill without including a federal pay raise. The Senate has yet to take up the legislation at all. 

Nothing is final until the President issues an executive order to officially set pay rates. That typically happens in December.

Military and Law Enforcement Raises

The president directed members of the U.S. military to receive a raise of five percent to seven percent, depending on rank. Other uniformed service members who do not serve in the Armed Services would receive a raise of 3.6 percent.

And some law enforcement personnel are in line for the 3.8 percent increase. The Office of Personnel Management (OPM) was directed to determine which exact positions will receive the pay increase.

The news comes as Democrats in Congress have been trying to push the Federal Adjustment of Income Rates (FAIR) Act, which would guarantee a 4.1 percent pay raise for federal employees. So far, Congress has yet to pass any version of that legislation. 

And while the administration says the decision will not harm recruitment, federal labor unions disagree.

“A pay freeze will only deflate federal employees’ morale, erode employee retention and recruitment, and lead to a lower quality of services from the federal government,” said Federal Managers Association (FMA) National President Linda Lentjes.