S. 126 – FAIR Act | Legislate.dev

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Updated November 24, 2025 at 9:40 PM UTC

The FAIR Act would raise federal employee salaries for 2026. It boosts the base pay for workers under the statutory pay systems and for those paid prevailing rates by 3.3 percent, and it also lifts locality pay by 1 percent. The changes affect most federal civilian employees whose compensation is set by these pay systems.

Key Provisions

For calendar year 2026, basic pay for federal employees covered by the statutory pay systems will be increased by 3.3 percent.
For fiscal year 2026, basic pay for prevailing‑rate employees (those paid based on local wage surveys) will also be increased by 3.3 percent, overriding the usual survey requirements.
For calendar year 2026, locality pay (the extra amount added to base salary based on geographic area) will be increased by 1 percent.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Homeland Security and Governmental Affairs Committee

January 16, 2025

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SenateIntro Referral

Introduced in Senate

January 16, 2025

SenateIntro Referral

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Homeland Security and Governmental Affairs Committee

January 16, 2025

Bill Text

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Introduced in SenateIssued January 16, 2025

II

119th CONGRESS

1st Session

S. 126

IN THE SENATE OF THE UNITED STATES

January 16, 2025

Mr. Schatz (for himself, Mr. Blumenthal, Mr. Padilla, Ms. Hirono, Mr. Schiff, Mr. Sanders, Mr. Markey, Mr. Kaine, Ms. Warren, Mr. Van Hollen, Mr. Heinrich, and Mr. Wyden) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

A BILL

To increase the rates of pay under the statutory pay systems and for prevailing rate employees by 4.3 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 2026, 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 3.3 percent.

(b)

Prevailing rate employees

Notwithstanding the wage survey requirements under section 5343(b) of title 5, United States Code, for fiscal year 2026, the rates of basic pay (as in effect on the last day of fiscal year 2025 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 3.3 percent.

3.

Adjustment to locality pay

For calendar year 2026, the percentage adjustment under section 5304 of title 5, United States Code, shall be an increase of 1 percent.