January 16, 2025
Mr. Connolly (for himself, Ms. Norton, Ms. Lee of Pennsylvania, Mr. Subramanyam, Mr. Lynch, Mr. Beyer, and Mr. Mfume) introduced the following bill; which was referred to the Committee on Oversight and Government Reform
To increase the rates of pay under the statutory pay systems and for prevailing rate employees by 4.3 percent, and for other purposes.
Section 1. Short title
This Act may be cited as the Federal Adjustment of Income Rates Act
or the FAIR Act
.
Sec. 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.
Sec. 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.