FAIR Act
- Bill Number
- S. 126
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-01-16: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- Last Updated
- 2026-02-24T18:12:28Z
AI-Generated Summary
Purpose
The Federal Adjustment of Income Rates Act (FAIR Act), S. 126, aims to provide a specific pay increase for federal employees under statutory pay systems and prevailing rate systems. It sets a total adjustment of 4.3 percent for calendar year 2026, divided into a base increase and a locality pay adjustment, to address compensation levels.
Key Provisions
- Short Title (Section 1): The bill is officially named the "Federal Adjustment of Income Rates Act" or "FAIR Act."
- Adjustment to Rates of Pay (Section 2):
- For statutory pay systems (defined as the General Schedule and other fixed federal pay scales under Title 5 of the U.S. Code), basic pay rates increase by 3.3 percent effective for calendar year 2026.
- For prevailing rate employees (non-professional workers like tradespeople whose pay is based on local wage surveys), basic pay rates increase by 3.3 percent for fiscal year 2026, overriding standard wage survey requirements.
- Adjustment to Locality Pay (Section 3): Locality pay (additional compensation to account for higher living costs in specific geographic areas) increases by 1 percent for calendar year 2026.
Significant Changes to Existing Law
- Amends sections of Title 5, U.S. Code (federal civil service laws), by mandating fixed percentage increases rather than relying solely on annual formulas, presidential recommendations, or local wage surveys.
- For prevailing rate employees, it bypasses the usual survey process under section 5343(b), ensuring a uniform 3.3 percent raise without needing location-specific data.
- These changes apply specifically to 2026, potentially setting a precedent for future targeted adjustments outside the typical annual review process.
Potential Impacts
- Government Agencies: Increased payroll costs could strain budgets, requiring additional funding allocations; however, it may improve employee retention and morale, enhancing operational efficiency.
- Citizens: Indirect benefits through a more stable and motivated federal workforce, potentially leading to better public services; taxpayers may face higher government spending.
- International Relations: No direct impacts, as the bill focuses on domestic federal employee compensation.
Main Stakeholders Affected
- Federal Employees: Primary beneficiaries, including those under the General Schedule (about 1.5 million civilian workers) and prevailing rate systems (e.g., maintenance and blue-collar staff), receiving a combined 4.3 percent raise.
- Federal Agencies and Departments: Bear the cost of implementation, affecting budgeting for entities like the Department of Defense, Homeland Security, and others with large workforces.
- Taxpayers and Congress: Indirectly involved through funding requirements and oversight of federal spending.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens congressional authority over executive branch pay decisions by specifying adjustments in statute, potentially limiting presidential discretion under existing pay adjustment laws (e.g., sections 5303 and 5304 of Title 5). No constitutional challenges are evident, as it aligns with Congress's power to regulate federal compensation.
- Political: Introduced by a bipartisan group of senators focused on worker issues, it signals efforts to combat inflation and cost-of-living pressures on federal workers. Could influence broader debates on federal pay equity, especially if enacted amid budget negotiations, but may face opposition over fiscal concerns in a divided Congress.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (16)
Sen. Blumenthal, Richard [D-CT], Sen. Padilla, Alex [D-CA], Sen. Hirono, Mazie K. [D-HI], Sen. Schiff, Adam B. [D-CA], Sen. Sanders, Bernard [I-VT], Sen. Markey, Edward J. [D-MA], Sen. Kaine, Tim [D-VA], Sen. Warren, Elizabeth [D-MA], Sen. Van Hollen, Chris [D-MD], Sen. Heinrich, Martin [D-NM], Sen. Wyden, Ron [D-OR], Sen. Lujan, Ben Ray [D-NM], Sen. Fetterman, John [D-PA], Sen. Warner, Mark R. [D-VA], Sen. Coons, Christopher A. [D-DE], Sen. Alsobrooks, Angela D. [D-MD]
Recent Actions
- 2025-01-16: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- 2025-01-16: Introduced in Senate
Bill Versions
- Federal Adjustment of Income Rates Act — issued 2025-01-16 — PDF (2 pages)