Below Market Federal Pay Raise

“NARFE: Below Market Federal Pay Raise is Inadequate Compensation for Increased Workload, Will Hinder Recruitment and Retention.

NARFE National President William Shackelford issued the following statement in response to the alternative pay plan for 2026 submitted by President Donald Trump today: 

“As this administration continues to press ahead with large-scale reductions in the federal workforce, and prices continue to rise, a below-market, 1% pay increase fails to keep up with inflation and is inadequate compensation for the increased workload placed upon the remaining federal employees. As it stands, federal pay rates already lag private-sector pay rates by about 25% for similar jobs. As a result of the administration’s policies, more high-performing, undervalued employees will likely leave public service, and it will be more difficult or more expensive to hire and train replacements. Without adequate staffing, federal government operations and services on behalf of the American people will suffer.  

“I urge Congress to reject this pay plan and authorize at least a 3.8% market-rate federal pay increase, in line with recent private sector pay increases and the expected increase to military pay rates and for federal law enforcement. With OPM predicting 300,000 fewer federal workers by the end of the year, those remaining will be asked to fulfill their missions with less support. They should be compensated appropriately.”

A FEDweek Article by FEDweek Staff on September 1, 2025 titled: Trump Calls for 1 Percent Federal Raise; Higher Military Rate for Some Law Enforcement has further details of the President’s Proposed Pay.