Schatz introduces FAIR Act for federal employee pay increase in 2026

Today, US Sen. Brian Schatz and joined with fellow Democrat, US Rep. Gerry Connolly of Virginia to reintroduce the Federal Adjustment of Income Rates Act, known as FAIR.

The bill that would provide federal employees with a 4.3% pay increase in calendar year 2026. Schatz and Connolly previously introduced similar legislation in the 115th, 116th, 117th, and 118th congresses.

According to a press release from Sen. Schatz, federal employees have endured government shutdowns, pay freezes, hiring freezes and lost pay for more than a decade as a result of sequestration-related furloughs. The FAIR Act’s wage adjustment restores years of lost wage increases for federal employees.

“Whether it’s inspecting our food, conducting medical research, or caring for veterans, federal workers play an important role in our daily lives and deserve pay that reflects that,” Schatz said. “Our bill boosts wages to keep public service jobs competitive with those in the private sector and maintain a strong and talented federal workforce.”

“The federal workforce is our country’s single greatest asset,” Connolly said. “Even after serving dutifully through a global pandemic and enduring the Trump Administration’s cruel personal attacks, unsafe work environments, pay freezes, government shutdowns, sequestration cuts, furloughs, and mindless across-the-board hiring freezes, they come to work every day in service to the American people.”

Despite recent pay increases for federal employees under the Biden administration – 4.6% in 2024, 5.2% in 2024 and 2% in 2025 – wages continue to lag behind the rising cost of living. In 2023, federal employees earned roughly 27% less on average than employees in the private sector, according to the Federal Salary Council.

In addition to Schatz, the FAIR Act is cosponsored by US Sens. Richard Blumenthal (D-Conn.), Alex Padilla (D-Calif.), Mazie K. Hirono (D-Hawai‘i), Adam Schiff (D-Calif.), Bernie Sanders (I-Vt.), Ed Markey (D-Mass.), Tim Kaine (D-Va.), Elizabeth Warren (D-Mass.), Chris Van Hollen (D-Md.), Martin Heinrich (D-N.M.) and Ron Wyden (D-Ore.).