S. 3823 – FAIR Act | Legislate.dev

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Updated February 26, 2026 at 5:21 AM UTC

The FAIR Act would raise federal employee salaries for 2027. It boosts pay for workers under the statutory pay systems and for prevailing‑rate employees by about 3.1 percent each, and adds a 1 percent increase to locality pay, affecting most federal workers nationwide.

Key Provisions

For calendar year 2027, basic pay for federal employees covered by statutory pay systems will be increased by 3.1 percent.
For fiscal year 2027, basic pay for prevailing‑rate employees in each wage area (and related pay scales) 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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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

February 10, 2026

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SenateIntro Referral

Introduced in Senate

February 10, 2026

SenateIntro Referral

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

Homeland Security and Governmental Affairs Committee

February 10, 2026

Bill Text

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Introduced in SenateIssued February 10, 2026

II

119th CONGRESS

2d Session

S. 3823

IN THE SENATE OF THE UNITED STATES

February 10, 2026

Mr. Schatz (for himself, Ms. Alsobrooks, Mr. Padilla, Ms. Warren, Mr. Blumenthal, Mr. Van Hollen, Mr. Sanders, Ms. Hirono, Mr. Kaine, Mr. Warner, Mr. Schiff, 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 4.1 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.