FAIR Act

Federal Adjustment of Income Rates Act or the FAIR Act

This bill modifies pay rates for federal employees in 2026. Specifically, the bill increases rates under the statutory pay systems and for prevailing rate employees by 3.3% and increases locality pay by 1%.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 126 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  1st Session
                                 S. 126

 To increase the rates of pay under the statutory pay systems and for 
   prevailing rate employees by 4.3 percent, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 16, 2025

 Mr. Schatz (for himself, Mr. Blumenthal, Mr. Padilla, Ms. Hirono, Mr. 
Schiff, Mr. Sanders, Mr. Markey, Mr. Kaine, Ms. Warren, Mr. Van Hollen, 
 Mr. Heinrich, and Mr. Wyden) introduced the following bill; which was 
   read twice and referred to the Committee on Homeland Security and 
                          Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
 To increase the rates of pay under the statutory pay systems and for 
   prevailing rate employees by 4.3 percent, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Adjustment of Income Rates 
Act'' or the ``FAIR Act''.

SEC. 2. ADJUSTMENT TO RATES OF PAY.

    (a) Statutory Pay Systems.--For calendar year 2026, the percentage 
adjustment under section 5303 of title 5, United States Code, in the 
rates of basic pay under the statutory pay systems (as defined in 
section 5302 of title 5, United States Code) shall be 3.3 percent.
    (b) Prevailing Rate Employees.--Notwithstanding the wage survey 
requirements under section 5343(b) of title 5, United States Code, for 
fiscal year 2026, the rates of basic pay (as in effect on the last day 
of fiscal year 2025 under section 5343(a) of such title) for prevailing 
rate employees in each wage area and the rates of basic pay under 
sections 5348 and 5349 of such title shall be increased by 3.3 percent.

SEC. 3. ADJUSTMENT TO LOCALITY PAY.

    For calendar year 2026, the percentage adjustment under section 
5304 of title 5, United States Code, shall be an increase of 1 percent.
                                 <all>