H.R. 7480House119th Congress (2025-2027)In Committee

FAIR Act

Introduced February 10, 2026

AI-Generated Summary

Updated February 26, 2026 at 5:20 AM UTC

The FAIR Act (Federal Adjustment of Income Rates Act) would raise federal employee pay for 2027. It sets a 3.1% increase for workers covered by the statutory pay systems and for those paid based on prevailing local rates, and adds a 1% boost to locality pay. The changes affect all federal civilian employees whose compensation is determined by these pay systems.

Key Provisions

  • For calendar year 2027, basic pay rates under the federal statutory pay systems will be increased by 3.1 percent.
  • For fiscal year 2027, basic pay rates for prevailing‑rate (local wage area) employees will also be increased by 3.1 percent, overriding the usual wage‑survey requirements.
  • Locality pay adjustments for 2027 will be raised by 1 percent.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Oversight and Government Reform.

February 10, 2026

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HouseIntro Referral

Introduced in House

February 10, 2026

HouseIntro Referral

Referred to the House Committee on Oversight and Government Reform.

February 10, 2026

Bill Text

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Introduced in HouseIssued February 10, 2026

I

119th CONGRESS

2d Session

H. R. 7480

IN THE HOUSE OF REPRESENTATIVES

February 10, 2026

Mr. Walkinshaw (for himself, Ms. Chu, Ms. Jayapal, Mr. Subramanyam, Ms. Norton, Mr. Lynch, Ms. Elfreth, Mr. Ivey, Ms. McClellan, Ms. Titus, Ms. DelBene, Ms. Budzinski, Mr. Beyer, Mr. Cleaver, Mr. Fitzpatrick, Mr. Hoyer, Ms. Omar, Ms. Simon, Ms. DeGette, and Mr. McGovern) introduced the following bill; which was referred to the Committee on Oversight and Government Reform

A BILL

To increase the rates of pay under the statutory pay systems and for prevailing rate employees by 4.1 percent, and for other purposes.

1.

Short title

This Act may be cited as the Federal Adjustment of Income Rates Act or the FAIR Act.

2.

Adjustment to rates of pay

(a)

Statutory pay systems

For calendar year 2027, the percentage adjustment under section 5303 of title 5, United States Code, in the rates of basic pay under the statutory pay systems (as defined in section 5302 of title 5, United States Code) shall be 3.1 percent.

(b)

Prevailing rate employees

Notwithstanding the wage survey requirements under section 5343(b) of title 5, United States Code, for fiscal year 2027, the rates of basic pay (as in effect on the last day of fiscal year 2026 under section 5343(a) of such title) for prevailing rate employees in each wage area and the rates of basic pay under sections 5348 and 5349 of such title shall be increased by 3.1 percent.

3.

Adjustment to locality pay

For calendar year 2027, the percentage adjustment under section 5304 of title 5, United States Code, shall be an increase of 1 percent.