A new piece of legislation introduced in Congress aims to provide an across-the-board pay adjustment for federal employees. The Federal Adjustment of Income Rates (FAIR) Act, introduced by Congressman James Walkinshaw of Virginia and Senator Brian Schatz of Hawaii, would offer a 4.1 percent increase in federal salaries in 2027, marking one of the most comprehensive proposals in recent years.
The bill responds to longstanding concerns about federal pay lagging behind the private sector and addresses the cumulative effects of years of pay freezes, furloughs, and hiring restrictions. Advocates argue that providing regular adjustments is necessary to maintain a competitive federal workforce and to ensure that public service careers remain attractive in all 50 states.
Legislative Details and Scope of the FAIR Act
According to reporting by Newsweek, the FAIR Act was introduced in the House as H.R. 7480 on February 10, 2026, in the 119th Congress and currently remains at the introduced stage pending committee consideration. The bill has 19 co-sponsors, with 18 Democrats and one Republican, and has been referred to the House Committee on Oversight and Government Reform.
If enacted, the legislation would affect just under three million federal civilian employees, according to the Bureau of Labor Statistics. The proposed 4.1 percent pay adjustment consists of a 3.1 percent across-the-board raise in basic pay and an additional 1 percent adjustment for locality pay. The bill would cover both statutory pay systems and prevailing-rate workers.
Lawmakers backing the bill argue that federal salaries have fallen behind private sector equivalents. According to Senator Brian Schatz, federal workers perform essential services such as medical research, food inspections, and veteran care, yet their pay lags behind comparable private-sector roles. Congressman Walkinshaw emphasized that the FAIR Act would help federal pay keep pace with the cost of living and support public service careers across the nation.
Reactions from Federal Employee Representatives
Federal employee unions have widely expressed support for the FAIR Act. Everett Kelley, National President of the American Federation of Government Employees, highlighted that federal employees earned roughly 27 percent less than comparable private-sector workers in recent years. According to Kelley, providing a 4.1 percent raise would help close this gap, improve recruitment, and strengthen retention across federal agencies.
Doreen Greenwald, National President of the National Treasury Employees Union, also praised the bill for recognizing the contributions of federal workers nationwide. According to Greenwald, the legislation reflects an effort to ensure that federal employees receive pay that aligns with the cost of living while enabling the government to maintain a skilled workforce. Both union leaders underscored that fair compensation benefits not only employees but also the quality of government services delivered to the public.
The FAIR Act will now be considered in upcoming congressional budget and compensation discussions, where House committees review H.R. 7480 before any potential floor vote. Senator Schatz’s parallel Senate effort seeks additional support, and lawmakers will evaluate whether the bill can be incorporated into broader spending or pay measures. According to Newsweek, while the legislation does not establish final pay policy on its own, it serves as a benchmark for federal pay discussions heading into 2027.
Federal employees and advocates alike will be watching the progress of the FAIR Act closely, as it could provide the first systematic adjustment in federal salaries after years of delayed increases and financial uncertainty.
