Under federal pay law, raises are supposed to be linked to the employment cost index measure of private sector wage growth, with locality pay added on top to narrow gaps by locality, although that process has been followed only rarely in the three decades since it was enacted. Image: 24K-Production/Shutterstock.com
By: FEDweek StaffA group of House and Senate Democrats has introduced bills (HR-7480, S-3823) calling for a 4.1 percent raise to be paid to federal employees in January 2027.
That is the latest in a series of annual introductions of bills in which Capitol Hill Democrats active in federal employment issues have taken an early position on a raise ahead of the budget cycle for the upcoming budget year. Federal employee organizations also advocate for that figure during the budget process.
The White House has not released a budget proposal for the 2027 fiscal year. Such proposals traditionally have been sent to Congress in early February, although they often have been delayed in recent years due to delays in finalizing spending for the ongoing year—which is the case again this year.
Budget documents released by the White House early last year assumed that there would be no federal pay raise in January 2026. However, later President Trump backed a 1 percent raise across the board except for a 3.8 percent increase for certain law enforcement positions. By not taking a position, Congress allowed that to take effect by default.
Under federal pay law, raises are supposed to be linked to the employment cost index measure of private sector wage growth, with locality pay added on top to narrow gaps by locality, although that process has been followed only rarely in the three decades since it was enacted.
Also recently introduced by House Democrats was HR-7322, to guarantee that federal employees who are put on unpaid furloughs during a shutdown receive back pay when the funding lapse ends. While President Trump signed into law a bill during his first administration with that aim, his current administration has asserted that that law provides no such guarantee.
A similar bill was introduced earlier in the Senate (S-3039).
Longstanding policy requires that employees who work without pay during a shutdown must receive back pay.
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