H.R.493 - Federal Adjustment of Income Rates Act; FAIR Act (119th Congress)
Summary
H.R. 493, the FAIR Act, proposes a 4.3% increase in pay rates for federal employees under statutory pay systems and prevailing rate employees. The bill specifies a 3.3% adjustment to basic pay rates and a 1% adjustment to locality pay for calendar year 2026. It aims to provide federal employees with a cost-of-living adjustment.
Expected Effects
If enacted, the FAIR Act would increase the paychecks of federal employees in 2026. This could improve employee morale and potentially attract and retain talent within the federal government. The increased pay may also stimulate local economies where federal employees reside.
Potential Benefits
- Increased financial security for federal employees.
- Potential boost to local economies due to increased spending.
- Improved morale and productivity among federal workers.
- Enhanced ability to attract and retain qualified individuals in public service.
- Addresses cost of living increases for federal employees.
Most Benefited Areas:
Potential Disadvantages
- Increased government spending, potentially contributing to budget deficits.
- Possible inflationary effects if not managed carefully.
- Potential for similar demands from other sectors, leading to broader wage pressures.
- May not address underlying issues of government efficiency or performance.
- Could be perceived as unfair by taxpayers in the private sector who may not receive similar raises.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the Constitution's broad mandate to "promote the general Welfare" (Preamble). Article I, Section 8 grants Congress the power to "lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States." While the Constitution does not explicitly address federal employee pay, this power is generally understood to allow Congress to determine compensation for federal employees.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).