0:00
Hello everyone, Ian Smith here with
0:02
fedsmith.com bringing you some breaking
0:04
news that just dropped. President Trump
0:07
has issued the executive order
0:09
finalizing the 2026 federal pay raise.
0:12
So, I'm going to go over the details of
0:14
it here with you. The raise is a 1%
0:18
acrosstheboard raise with no locality
0:21
pay increase for most federal employees.
0:23
And this is in line with expectations
0:26
because in his August alternative pay
0:30
plan letter, President Trump outlined
0:34
exactly that. He proposed a 1% pay raise
0:38
on average for most federal employees uh
0:40
with no locality pay increase. That
0:43
letter stated, quote, I have determined
0:46
that for 2026, base pay will increase by
0:49
1% and locality pay increases will be
0:52
set at zero. This adjustment shall take
0:55
effect on the first day of the first
0:57
applicable pay period beginning on or
0:59
after January 1st, 2026, and will
1:02
address our ability to attract and
1:04
retain a skilled and highly talented
1:06
federal workforce while charting a
1:09
fiscally responsible course.
1:11
Now, any pay raise for federal employees
1:13
at all in 2026 actually came as a bit of
1:16
a surprise. The reason I say that is
1:18
because if you look all the way back
1:21
over the course of 2025,
1:24
this year, um, back when the White House
1:27
issued its budget proposal for 2026,
1:31
it was silent on the matter of a pay
1:33
raise for federal employees, which is
1:35
kind of unusual because normally that's
1:37
one of the earlier steps in the annual
1:40
pay raise process is the White House
1:42
will propose what the president wants
1:45
next year's pay raise to
1:47
And the budget proposal was not silent
1:50
on a pay raise for members of the
1:53
military. It proposed at that time a
1:56
3.8% pay raise, which is what is being
1:59
given to military next year. Um and the
2:03
assumption was that given this
2:05
discrepancy and the fact that no pay
2:07
raise for federal employees was
2:09
mentioned that meant that it was a pay
2:12
freeze and no pay raise was going to be
2:15
offered to federal employees in 2026.
2:18
So in August when um the president
2:21
published his alternative pay plan
2:23
letter, it came as a bit of a surprise
2:25
that he in fact was recommending a pay
2:27
raise for federal for most federal
2:29
employees next year. And that's a brief
2:32
overview of the 2026 pay raise, which
2:34
again has been finalized now that
2:36
President Trump has issued the executive
2:38
order. Please be sure to visit the
2:40
fedsmith.com website because we have a
2:42
lot more information on our site about
2:44
next year's raise. There's an article
2:46
about the raise itself. And we will have
2:49
or currently have, depending on when
2:51
you're seeing this video, the 2026
2:53
general schedule payables as well that
2:56
OPM is publishing to go along with the
2:58
pay raise. Thank you for watching and um
3:01
I will leave links to all of that in the
3:03
description here in this video so you'll
3:05
have access to it. Thank you for
