Congress could still put a different raise number into the upcoming general appropriations bill this year, which if signed by the end of the year would override Trump's letter. Image: Waxen/Shutterstock.com
By: FEDweek StaffPresident Trump is expected to issue a letter to Congress by the end of August reaffirming his intent not to provide a 2026 pay raise for federal civilian personnel, thereby preventing a large automatic raise from kicking in under federal pay law.
A raise was not called for in budget documents issued earlier this year. An amount is usually put forth in the “skinny” budget proposal in January, but it was silent on that point – although not unexpectedly, as the White House and then-DOGE leader Elon Musk were vocal about slashing payrolls.
The January budget actually included a pay cut in the form of an increase in January 2026—to be followed by another in January 2027—of 1.8 percentage points in required contributions toward retirement by those first hired before 2013 and who currently are paying 0.8 percent of salary toward their future FERS annuities. (Related federal employee provisions were stripped from legislation this year but made it close to the finish line: elimination of the FERS supplement, and moving to a high-5 annuity calculation rather than the current highest-3 year salary average – those may come up again.)
In contrast to federal civilian pay, the White House said at the time it “recognizes America’s servicemembers’ sacrifice to the Nation with a 3.8 percent pay raise.”
The awaited August letter sets an “alternative” raise to be paid by default should no raise figure be enacted into law by year’s end—alternative to the increase that otherwise would take effect automatically under the 1990 federal pay law – currently over 25 percent, based on the Federal Salary Council’s research on the federal/private sector pay gap.
A 2 percent average pay raise was finalized last January, with increases varying by locality from 1.88 to 2.35 percent. That was the smallest raise under the Biden administration, following 2.7, 4.6 and 5.2 percent increases over 2022-2024; the 2024 increase was the largest since 1980 and the 2023 increase was the second-largest in that time.
Raises in Trump’s first term included 2.1 percent when he took offie, an average increase of 1.9 percent in 2018 (after Congress intervened), 1.9 percent in 2019 and 3.1 percent in 2020 (after Congress overrode a proposed 1 percent boost for that year).
Congress could still put a different raise number into the upcoming general appropriations bill this year, which if signed by the end of the year would override Trump’s letter, but that seems highly unlikely.
Ruling on CFPB Job Cuts Could Affect Challenges to Other RIFs and Reorgs
OPM Calls Off Viewpoint Survey; Next Edition to be Revised
Several Federal Agencies Disavow Union Contracts, with More Likely to Follow
See also,
Should I be Shooting for a $1M TSP Balance? Depends…
What to Know About the New Federal Application Process
Attorney Schnitzer:
How to Challenge a Federal Reduction in Force (RIF) in 2025Attorney Schnitzer:
A Pre-RIF Checklist for Every Federal Employee, From a Federal Employment AttorneyTop 10 Provisions in the Big Beautiful Bill of Interest to Federal Employees
