S.126 - Federal Adjustment of Income Rates Act; FAIR Act (119th Congress)
Summary
The FAIR Act (S.126) proposes a 4.3% increase in pay for federal employees under statutory pay systems and prevailing rate employees. However, the bill specifies that for calendar year 2026, the actual adjustment will be 3.3% for statutory pay systems and prevailing rate employees, with an additional 1% increase for locality pay. The bill was introduced in the Senate and referred to the Committee on Homeland Security and Governmental Affairs.
Expected Effects
If enacted, the FAIR Act would increase the pay for federal employees in 2026. This would directly impact the financial well-being of federal workers. It may also have broader economic effects due to increased government spending and potential inflationary pressure.
Potential Benefits
- Increased financial security for federal employees.
- Potential boost to local economies due to increased spending.
- May attract and retain qualified individuals in public service.
- Could improve morale and productivity among federal workers.
- Addresses concerns about the rising cost of living for government employees.
Most Benefited Areas:
Potential Disadvantages
- Increased government spending, potentially leading to higher budget deficits.
- Possible inflationary pressure due to increased wages.
- May create disparity between federal and private sector pay.
- Could be perceived as unfair by taxpayers if not accompanied by increased efficiency.
- The actual increase is less than the initially proposed 4.3%.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the Constitution's Article I, Section 8, which grants Congress the power to provide for the general welfare of the United States. Specifically, it allows Congress to set the compensation for federal employees. However, the Constitution does not explicitly mandate or restrict specific pay adjustments, leaving it to the discretion of the legislative branch.
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).