FAIR Act
- Bill Number
- H.R. 493
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-09-16: ASSUMING FIRST SPONSORSHIP - Mr. Walkinshaw asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 493, a bill originally introduced by Representative Connolly, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.
- Last Updated
- 2026-02-24T18:12:26Z
AI-Generated Summary
Purpose
The Federal Adjustment of Income Rates Act (FAIR Act), H.R. 493, aims to provide a targeted pay increase for federal employees by adjusting base pay rates and locality pay under existing U.S. law. It sets a total effective increase of 4.3 percent for calendar year 2026, combining a 3.3 percent base adjustment with a 1 percent locality adjustment, to address compensation for civilian federal workers.
Key Provisions
- Base Pay Adjustment for Statutory Systems: Under Section 5303 of Title 5, U.S. Code (which governs annual pay adjustments for most federal civilian employees), basic pay rates for statutory pay systems—such as the General Schedule (GS) used by about 70% of federal workers—will increase by 3.3 percent effective January 2026.
- Adjustment for Prevailing Rate Employees: For fiscal year 2026 (October 1, 2025–September 30, 2026), prevailing rate employees (non-GS workers like certain blue-collar or trade positions whose pay is based on local wage surveys) will receive a 3.3 percent increase in basic pay rates. This overrides the usual requirement for local wage surveys under Section 5343(b) of Title 5, U.S. Code.
- Locality Pay Adjustment: Under Section 5304 of Title 5, U.S. Code (which adds location-based supplements to base pay to account for higher living costs in certain areas), locality pay will increase by 1 percent across all applicable areas for calendar year 2026.
Significant Changes to Existing Law
- The bill mandates specific percentage increases (3.3% base and 1% locality), which could preempt the standard process where the President proposes adjustments based on economic indicators like the Employment Cost Index (ECI), subject to congressional approval.
- For prevailing rate employees, it temporarily suspends the requirement for annual local wage surveys, simplifying the adjustment process and ensuring uniformity without region-specific negotiations.
- These changes apply only to 2026 and do not alter the underlying statutory framework but provide a fixed, one-year directive.
Potential Impacts
- On Government Agencies: Federal agencies will face increased personnel costs, estimated in the billions, requiring budget adjustments or additional appropriations. This could strain agency operations if not fully funded but may improve employee retention and morale.
- On Citizens: Primarily benefits the roughly 2 million civilian federal employees (and their families) by boosting take-home pay, potentially stimulating local economies in areas with high concentrations of federal workers (e.g., Washington, D.C.). Indirectly, it could affect taxpayers through higher government spending.
- On International Relations: Minimal direct impact, though enhanced federal workforce compensation might support more efficient U.S. government operations abroad, such as in diplomacy or aid programs.
Main Stakeholders Affected
- Federal Employees: Core beneficiaries, including General Schedule workers, prevailing rate (wage-grade) employees, and those in specialty systems like administrative law judges.
- Federal Agencies and Departments: Entities like the Departments of Defense, Veterans Affairs, and Treasury, which employ large federal workforces, will manage implementation and budgeting.
- Unions and Advocacy Groups: Organizations representing federal workers (e.g., American Federation of Government Employees) stand to gain from the pay equity push.
- Taxpayers and Congress: Indirectly affected through fiscal oversight, as the bill requires congressional funding to cover the raises.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill aligns with Congress's constitutional authority under Article I, Section 8 to control federal compensation and appropriations. By overriding survey requirements, it streamlines administration but could face challenges if seen as bypassing procedural safeguards in Title 5, U.S. Code.
- Constitutional: No major conflicts; it upholds the separation of powers by having Congress directly set pay rates rather than deferring entirely to the executive branch.
- Political: As a bipartisan-introduced bill (by Democrats in the 119th Congress), it reflects ongoing debates over federal pay parity with private sector wages, especially post-inflation. If enacted, it could set a precedent for future fixed adjustments amid economic uncertainty, potentially influencing midterm budget negotiations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Connolly, Gerald E. [D-VA-11]
Cosponsors (36)
Del. Norton, Eleanor Holmes [D-DC], Rep. Lee, Summer L. [D-PA-12], Rep. Subramanyam, Suhas [D-VA-10], Rep. Lynch, Stephen F. [D-MA-8], Rep. Beyer, Donald S. [D-VA-8], Rep. Mfume, Kweisi [D-MD-7], Rep. DelBene, Suzan K. [D-WA-1], Rep. Brownley, Julia [D-CA-26], Rep. Scanlon, Mary Gay [D-PA-5], Rep. Budzinski, Nikki [D-IL-13], Rep. Lieu, Ted [D-CA-36], Rep. Ivey, Glenn [D-MD-4], Rep. DeGette, Diana [D-CO-1], Rep. Mrvan, Frank J. [D-IN-1], Rep. Randall, Emily [D-WA-6], Rep. Norcross, Donald [D-NJ-1], Rep. Cleaver, Emanuel [D-MO-5], Rep. Salinas, Andrea [D-OR-6], Rep. Hoyle, Val T. [D-OR-4], Rep. Garcia, Robert [D-CA-42], Rep. Barragán, Nanette Diaz [D-CA-44], Rep. McGovern, James P. [D-MA-2], Rep. Levin, Mike [D-CA-49], Rep. Johnson, Julie [D-TX-32], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Omar, Ilhan [D-MN-5], Rep. Ansari, Yassamin [D-AZ-3], Rep. Scott, Robert C. "Bobby" [D-VA-3], Rep. Figures, Shomari [D-AL-2], Rep. Hoyer, Steny H. [D-MD-5], Rep. Elfreth, Sarah [D-MD-3], Rep. Evans, Dwight [D-PA-3], Rep. Dingell, Debbie [D-MI-6], Rep. Moore, Gwen [D-WI-4], Rep. Pallone, Frank [D-NJ-6], Rep. Waters, Maxine [D-CA-43]
Recent Actions
- 2025-09-16: ASSUMING FIRST SPONSORSHIP - Mr. Walkinshaw asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 493, a bill originally introduced by Representative Connolly, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.
- 2025-01-16: Referred to the House Committee on Oversight and Government Reform.
- 2025-01-16: Introduced in House
- 2025-01-16: Introduced in House
Bill Versions
- Federal Adjustment of Income Rates Act — issued 2025-01-16 — PDF (2 pages)