The proposal would deliver an across-the-board salary adjustment to millions of federal employees, a bid that supporters say will help recruitment and retention after years of pay freezes and furloughs.
Supporters also say regular pay adjustments are needed to keep federal salaries aligned with living costs and private sector wages.
The proposal, known as the Federal Adjustment of Income Rates (FAIR) Act, was introduced by Democratic Representative James Walkinshaw of Virginia in the House and Democratic Senator Brian Schatz of Hawaii in the Senate.
Walkinshaw introduced H.R. 7480 on February 10, 2026, in the 119th Congress, where it remains at the introduced stage to be considered by committee before any possible floor action in either chamber.
The House bill, which lists 19 co-sponsors -- 18 Democrats and one Republican -- has been referred to the House Committee on Oversight and Government Reform.
If enacted, it would provide federal civilian employees with an average 4.1 percent pay increase in calendar year 2027.
The United States federal workforce comprises just under three million people, according to Bureau of Labor Statistics data published in August 2025.
Under the bill text, the increase would be made up of a 3.1 percent across‑the‑board raise in basic pay, plus an additional average 1 percent adjustment for locality pay.
The legislation applies to employees covered by statutory pay systems as well as prevailing‑rate workers.
Lawmakers behind the bill say federal pay has fallen behind private sector wages.
Citing the Federal Salary Council, the sponsors note that federal employees earned roughly 27 percent less on average than comparable private sector workers in recent years.
Versions of the FAIR Act have been introduced annually for more than a decade and are often cited by lawmakers as a benchmark ahead of federal pay negotiations.
The bill does not set final pay policy on its own but would require approval by Congress and the president to take effect.
Representative James Walkinshaw said: "Federal workers are the backbone of America, delivering the essential services and benefits that families have earned in every corner of our country. They serve communities nationwide and have done so honorably even as the Trump administration has launched unprecedented attacks on the civil service. The FAIR Act delivers a much-needed 4.1 percent pay raise in 2027 so federal pay can keep pace with the cost of living and public service careers remain competitive."
Senator Brian Schatz said: "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. Our bill boosts wages to keep public service jobs competitive with those in the private sector and maintain a strong and talented federal workforce."
Everett Kelley, National President of the American Federation of Government Employees, said: "Federal employees have long faced a significant gap in salaries as compared to their private sector counterparts -- nearly 27 percent lower on average nationwide -- making it hard to recruit and retain the dedicated public servants our nation deserves. That's why American Federation of Government Employees supports Senator Schatz's reintroduction of the FAIR Act, which would provide a meaningful pay adjustment and help close this pay gap by delivering a 4.1 percent raise in January 2027. Fair pay isn't just good for federal workers -- it's also good for the quality of government services and the people we all serve."
Doreen Greenwald, National President of the National Treasury Employees Union, said: "Federal employees live and work in every state and congressional district across the country providing critical services for our nation and the American people. However, their pay falls far below that of individuals in comparable jobs in the private sector. NTEU applauds Senator Schatz and Representative Walkinshaw and the many Members of Congress who cosponsored this bill for supporting federal workers receiving a fair pay increase in 2027 to ensure that employees can keep up with the costs of living and that the federal government can recruit and retain talented workers."
The FAIR Act will be considered as part of upcoming budget and compensation discussions in Congress, where lawmakers and the White House set federal pay policy for 2027.
House committees will review H.R. 7480 before any potential floor vote, while Schatz's Senate effort will seek additional backers and possible inclusion in broader spending or pay measures.