FAIR Act
- Bill Number
- S. 3823
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-02-10: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- Last Updated
- 2026-04-16T11:03:25Z
AI-Generated Summary
Purpose
The Federal Adjustment of Income Rates Act (FAIR Act), S. 3823, aims to provide a targeted pay increase for federal employees by setting specific percentage adjustments to base pay and locality pay rates. This totals a 4.1% overall increase (3.1% base plus 1% locality) for calendar year 2027, helping to address compensation levels for civilian federal workers.
Key Provisions
- Base Pay Adjustment for Statutory Pay Systems: Under Section 5303 of Title 5, U.S. Code (which governs annual pay adjustments for most federal civilian employees), basic pay rates will increase by 3.1% effective for calendar year 2027.
- Base Pay Adjustment for Prevailing Rate Employees: Under Section 5343 of Title 5, U.S. Code (covering wage employees, such as those in trades or crafts whose pay is based on local labor market surveys), basic pay rates will also increase by 3.1% for fiscal year 2027. This overrides the usual requirement for conducting wage surveys in each area.
- 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), the adjustment will be a 1% increase for calendar year 2027.
Significant Changes to Existing Law
- The bill mandates fixed percentage increases (3.1% for base pay and 1% for locality pay) rather than relying on the standard formula under current law, which typically ties adjustments to the Employment Cost Index (a measure of private-sector wage growth) or presidential recommendations.
- For prevailing rate employees, it bypasses the required annual wage surveys under Section 5343(b), streamlining the process but potentially reducing input from local market data.
Potential Impacts
- On Government Agencies: Federal agencies will face increased personnel costs, estimated in the billions, requiring budget adjustments or additional appropriations to cover the pay raises without reducing workforce size or services.
- On Citizens: As federal employees (including those in agencies like the IRS, Social Security Administration, and national parks) receive higher pay, it could improve retention and morale, indirectly benefiting public services. Taxpayers may see higher federal spending, funded through general revenues.
- On International Relations: Minimal direct impact, though it could enhance the competitiveness of U.S. federal salaries for attracting international talent to roles in diplomacy or global agencies.
Main Stakeholders Affected
- Federal Employees: Primary beneficiaries, including over 2 million civilian workers under statutory pay systems (e.g., General Schedule employees) and prevailing rate systems (e.g., blue-collar workers), who will see direct salary increases.
- Federal Agencies and Managers: Responsible for implementing the changes, including payroll updates and budgeting.
- Unions and Employee Advocacy Groups: Likely to support the bill, as sponsors include senators aligned with labor interests.
- Taxpayers and Congress: Indirectly affected through fiscal implications, with Congress needing to approve funding.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill amends Title 5 of the U.S. Code, ensuring compliance with federal pay statutes, but the override of wage surveys for prevailing rate employees could face challenges if seen as undermining statutory survey requirements. It applies only to 2027, leaving future years to standard processes.
- Constitutional: No direct conflicts; pay adjustments fall under Congress's authority over federal compensation (Article I, Section 6), promoting equal protection by standardizing raises across employee types.
- Political: Introduced by a bipartisan group of Democratic senators focused on worker issues, it signals efforts to boost federal pay amid inflation concerns. If passed, it could set a precedent for legislating pay raises outside executive branch recommendations, potentially influencing budget negotiations and elections by highlighting government employee priorities.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (12)
Sen. Alsobrooks, Angela D. [D-MD], Sen. Padilla, Alex [D-CA], Sen. Warren, Elizabeth [D-MA], Sen. Blumenthal, Richard [D-CT], Sen. Van Hollen, Chris [D-MD], Sen. Sanders, Bernard [I-VT], Sen. Hirono, Mazie K. [D-HI], Sen. Kaine, Tim [D-VA], Sen. Warner, Mark R. [D-VA], Sen. Schiff, Adam B. [D-CA], Sen. Wyden, Ron [D-OR], Sen. Heinrich, Martin [D-NM]
Recent Actions
- 2026-02-10: Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- 2026-02-10: Introduced in Senate
Bill Versions
- Federal Adjustment of Income Rates Act — issued 2026-02-10 — PDF (2 pages)