No 2027 Raise for Most Federal Employees: What the Alternative Pay Plan Freeze Means

There will be no 2027 federal pay raise for most civilian federal employees. Last week, the White House sent Congress the alternative pay plan letter that sets federal pay for next year — and for most of the civilian workforce, it freezes both base pay and locality pay at 2026 rates.

What the Alternative Pay Plan Letter Does

Under a 1990 law, the Federal Employees Pay Comparability Act (FEPCA), General Schedule base pay adjusts automatically each January by a statutory formula, and locality pay adjusts alongside it. The president can displace those automatic adjustments only by transmitting an alternative pay plan to Congress before September 1. On Wednesday, August 26, the president did exactly that, stating that for 2027, base pay and locality pay for civilian federal employees will not change from 2026 rates.

The letter says the decision “will maintain fiscal responsibility without harming the government’s ability to recruit and retain well qualified employees.”

Who Gets a Raise in 2027 — and Who Does Not

The carve-outs are where the plan says the most:

• Most civilian federal employees: no increase — zero.
• Federal law enforcement: a 3.8% raise starting in January, which the letter ties to recruitment and retention in critical law enforcement roles. The Office of Personnel Management (OPM) will determine which law enforcement positions qualify.
• Active-duty military: 5–7% depending on experience, with other uniformed service members receiving 3.6%.

The same letter that grants law enforcement a raise for recruitment and retention concludes that a freeze will not harm recruitment and retention for everyone else — the same principle, applied in opposite directions.

The Law Behind the Freeze

The president has this authority. FEPCA’s default formula raises take effect automatically in January unless an alternative pay plan is transmitted to Congress by the September 1 deadline, based on national emergency or serious economic conditions. The August 26 letter satisfies that deadline, so the statutory default raises will not take effect automatically. In most years, the alternative plan becomes the final number, locked in by executive order in December.

Congress Still Holds the Pen

The one player who can change the number is Congress, through the annual appropriations process. Democrats have proposed a 4.1% raise through the FAIR Act, but Congress has never passed it, and House appropriators omitted a civilian raise from their 2027 spending bill. Unless Congress acts this fall, the freeze becomes reality in January.

For context: most civilian federal employees received a 1% raise in 2026. Add a 2027 freeze, and that is one percent across two years — while law enforcement received 3.8% both years.

What Federal Employees Should Do Now

Plan your 2027 budget around flat pay unless and until Congress says otherwise. Watch for the annual pay executive order in December, which is when the number becomes final. And if you want your voice heard, the number belongs to Congress until then — the Capitol switchboard is 202-224-3121.

A pay freeze is a budget decision. It is not a measure of your service or your worth.

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Legal Disclaimer: This content is for general informational purposes only and does not constitute legal advice. Federal employment situations are fact-specific and time-sensitive. Please consult a qualified federal employment attorney about your specific situation. You can contact Southworth PC at attorneysforfederalemployees.com.