Most federal employees will receive a 1% pay increase in 2026, the smallest adjustment in five years, according to a pay plan quietly sent to Congress by the White House. A select group, however, is set to receive a more generous rise—law enforcement officers, who are expected to see pay increases of up to 3.8%, though eligibility criteria are still being defined.
This marks a significant departure from the standard annual raise formula laid out in federal law, highlighting both the administration’s fiscal priorities and its intent to strengthen recruitment and retention in critical federal roles.
Broad 1% Raise Marks Return to Pre-Pandemic Levels
The across-the-board 1% raise for most civilian federal employees will take effect in January 2026, under the provisions of an “alternative pay plan” submitted by the president in accordance with the Federal Employee Pay Comparability Act (FEPCA). This process, required annually by 1 September, allows the administration to override the statutory formula that would otherwise determine pay adjustments based on the Employment Cost Index.
According to historical data, this is the smallest increase since 2021, when a similar 1% raise was implemented. More recently, federal civilian workers have received larger adjustments: 2.7% in 2022, 4.6% in 2023, 5.2% in 2024, and 2% in 2025. The current plan signals a return to more restrained wage growth amid broader economic concerns.
While FEPCA stipulates that federal salaries should reflect private sector wage trends and incorporate locality pay, presidents from both parties have consistently opted for alternative figures. Had the statutory formula been applied in 2026, employees under the General Schedule (GS) could have seen an average locality pay increase of 18.88%, in addition to a 3.3% across-the-board increase—figures deemed unsustainable by the administration.
In his message to Congress, the president cited the need to maintain fiscal responsibility, stating that “federal agency budgets cannot sustain such irresponsible increases.”
3.8% Law Enforcement Raise Under Review, Eligibility Pending
While most federal employees will receive the base 1% increase, federal law enforcement officers are slated for a 3.8% raise, mirroring the adjustment planned for military personnel in 2026. According to the president’s message, the aim is to “increase recruitment and retention in critical law enforcement roles and to ensure our great federal law enforcement officers are treated fairly.”
The details of who qualifies remain to be finalised. Starting this week, the Office of Personnel Management (OPM) will consult with federal agencies to identify specific categories of law enforcement personnel eligible for the higher raise. This group may include agents from the FBI, Secret Service, Department of Homeland Security, and other federal law enforcement bodies.
As these consultations proceed, questions remain around the scope of eligibility and how agencies will prioritise internal roles. The administration’s decision to provide a higher increase to law enforcement reflects growing concern over vacancy rates and staffing challenges in high-risk and high-demand areas of federal service.
