The FAIR Act (Federal Adjustment of Income Rates Act) increases federal employee pay by raising base salaries and locality pay adjustments for calendar year 2027. The bill provides a 3.1 percent pay raise for federal employees covered under statutory pay systems and prevailing wage employees, plus an additional 1 percent adjustment for locality pay (which accounts for cost-of-living differences across regions). This affects roughly 2 million federal civilian workers across all agencies. The bill was introduced in February 2026 and referred to the Senate Committee on Homeland Security and Governmental Affairs, though no specific funding authorization or implementation timeline beyond 2027 is detailed in the legislation itself.
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