[House Document 119-189]
[From the U.S. Government Publishing Office]




119th Congress, 2d Session - - - - - - - - - - House Document 119-189








 
                  ALTERNATIVE PLAN FOR PAY ADJUSTMENTS

                               __________

                             COMMUNICATION

                                  from

                     THE PRESIDENT OF THE UNITED STATES

                              transmitting

AN ALTERNATIVE PLAN FOR PAY ADJUSTMENTS FOR CIVILIAN FEDERAL EMPLOYEES 
COVERED BY THE GENERAL SCHEDULE AND CERTAIN OTHER PAY SYSTEMS, AND FOR 
   MEMBERS OF THE ARMED FORCES IN JANUARY 2027, PURSUANT TO 5 U.S.C. 
  5303(b)(1)(A); PUBLIC LAW 89-554, SEC. 5303(b)(1)(A) (AS AMENDED BY 
     PUBLIC LAW 101-509, SEC. 529); (104 STAT. 1430) AND 5 U.S.C. 
 5304a(a)(1); PUBLIC LAW 101-509, TITLE I, SEC. 101(a)(1); (104 STAT. 
                                 1436)

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


 August 27, 2026.--Referred jointly to the Committees on Oversight and 
    Government Reform and Armed Services, and ordered to be printed
    
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                 U.S. GOVERNMENT PUBLISHING OFFICE 
                 
69-011                       WASHINGTON : 2026 
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
                                           The White House,
                                       Washington, August 26, 2026.
Hon. Mike Johnson,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: I am transmitting an alternative plan for 
pay adjustments for civilian Federal employees covered by the 
General Schedule and certain other pay systems, and for members 
of the Armed Forces in January 2027.
    I have determined that for 2027, base pay and locality pay 
for civilian Federal employees will not change from the 2026 
rates.
    Title 5, United States Code, authorizes me to implement 
alternative plans for pay adjustments for civilian Federal 
employees covered by the General Schedule and certain other pay 
systems if, because of ``national emergency or serious economic 
conditions affecting the general welfare,'' I view the 
increases that would otherwise take effect as inappropriate.
    We must maintain efforts to put our Nation on a fiscally 
sustainable course; Federal agency budgets cannot sustain such 
irresponsible increases. Accordingly, I have determined that it 
is appropriate to exercise my authority to set alternative pay 
adjustments for 2027 pursuant to 5 U.S.C. 5303(b) and 5 U.S.C. 
5304a.
    Without this alternative pay plan, under current law, 
beginning in January 2027, locality pay for the civilian 
workforce would automatically increase by an average of 20.6 
percent, costing $26 billion in the first year alone. This 
change would go into effect in January 2027 along with an 
additional 3.1 percent across-the-board increase for the base 
General Schedule. Such a large raise for Federal employees 
while most Americans still struggle with the consequences of 
the Biden Administration's giant inflation spree is 
unacceptable and would be unfair. I have therefore decided to 
set at zero the pay adjustment to be made for the 2027 pay year 
pursuant to 5 U.S.C. 5303(b) and 5 U.S.C. 5304a. This decision 
will maintain fiscal responsibility without harming the 
Government's ability to recruit and retain well qualified 
employees.
    Separately, to increase recruitment and retention in 
critical law enforcement roles, at my direction the Office of 
Personnel Management shall use its statutory authority to 
increase 2027 compensation for law enforcement personnel by 3.8 
percent. That change is part of a separate process from the 
establishment of this alternative pay plan under 5 U.S.C. 
5303(b) and 5 U.S.C. 5304a.
    I strongly support the members of our Armed Forces, who are 
the greatest fighting force in the world and the defenders of 
American freedom. We must work to rebuild our military's 
readiness and capabilities by supporting our service members 
and their families.
    Accordingly, I have determined it is appropriate to 
exercise my authority under section 1009(e) of title 37, United 
States Code, to set the 2027 monthly basic pay increase for 
members of the Armed Forces at 7.0 percent for grades E1 to E5, 
6.0 percent for grades E6 to O3, and 5.0 percent for grades O4 
and above, subject to the caps established by 37 U.S.C. 203. 
This decision is consistent with my Fiscal Year 2027 Budget, 
and is required to support the Federal Government's ability to 
attract and retain well-qualified members for the Department of 
War and the United States Coast Guard. The adjustments 
described shall take effect on January 1, 2027.
    Uniformed service members who do not serve in the Armed 
Forces also provide significant service to our national 
defense. Effective January 1, 2027, monthly basic pay for these 
service members shall be increased by 3.6 percent, as 
determined pursuant to 37 U.S.C. 1009(c).
            Sincerely,
                                                   Donald J. Trump.

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