President Donald Trump is drawing a sharp line in federal compensation for 2027, freezing base and locality pay for most civilian employees while directing a 3.8% increase for federal law enforcement personnel.
In an Aug. 26 communication to House Speaker Mike Johnson, Trump said federal agency budgets could not sustain the pay increases that otherwise would take effect in January 2027. He invoked his authority under Title 5 to set alternative pay adjustments because of what he characterized as “national emergency or serious economic conditions affecting the general welfare.”
“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,” Trump said. “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.”
Presidents are required to submit an alternative pay plan by Sept. 1 each year to prevent larger formula-driven increases from taking effect the following year under the Federal Employees Pay Comparability Act.
Trump said the civilian pay freeze “will maintain fiscal responsibility without harming the Government’s ability to recruit and retain well qualified employees.”
But the administration is not applying that fiscal restraint evenly across the federal workforce. The White House is carving out additional compensation for law enforcement personnel and providing larger pay increases for members of the armed forces.
Trump said he directed the Office of Personnel Management to use its statutory authority to increase compensation for federal law enforcement personnel by 3.8% in 2027, citing recruitment and retention needs in critical law enforcement roles.
For members of the armed forces, monthly basic pay will increase 7% for service members in grades E1 to E5, 6% for grades E6 to O3, and 5% for grades O4 and above, subject to statutory caps.
Uniformed service members who do not serve in the armed forces will receive a 3.6% increase in monthly basic pay. The military adjustments take effect Jan. 1, 2027.