2026 Federal Pay Raise: 1% for GS, 3.8% for Law Enforcement Officers (LEOs).

LEOs win big in 2026 pay plan: 3.8% raise vs. just 1% for other others under GS as locality pay frozen.

Overview of Alternative Pay Plan

On August 28, 2025, the President formally invoked his authority under the Federal Employees Pay Comparability Act (FEPCA) to announce an alternative pay plan for calendar year 2026.

Under this plan:

• Starting January 1, 2026, federal employees under the General Schedule (GS) will receive a 1% increase in their base pay.
• Locality pay increases—automatically mandated under FEPCA—will be entirely frozen at in 2026, meaning no locality adjustments beyond the base pay raise.

Special Provision for Federal Law Enforcement

In 2026, the pay plan will be different for certain categories of federal Law Enforcement Officers (LEOs). For LEO’s: In addition to the general 1.0% base raise, selected LEOs will receive an additional 2.8 percentage raise, bringing their total base pay increase to 3.8% for 2026—matching military pay raises set by law (37 U.S.C. 1009).

Starting September 2, 2025, the Office of Personnel Management (OPM) will consult with agencies to identify which LEO categories are eligible for this premium increase. This enhanced LEO pay adjustment is intended to support recruitment, retention, and morale in critical federal enforcement roles, including immigration or border enforcement where hiring is increasing.

How It Applies to LEO Pay Structures

Under the existing LEO pay system, salaries are determined by combining either a special LEO base rate (for GS-1 through GS-10) or the standard GS base pay + locality pay — whichever results in higher pay.

But, under the 2026 alternative plan:

• Locality pay increases are frozen, so the traditional GS + locality combination does not rise beyond 1.0%.
• LEOs receiving the 3.8% base boost may see their special base rates increase by 3.8%, but they will not receive locality increases beyond existing levels.
• For some LEOs, this may result in larger total compensation growth in 2026 than other civilian employees in a locality pay area.

What This Means in Practice

For example, if a GS-5 Step 3 LEO currently earns $50,000, the eligible 3.8% base increase would add $1,900, while a non-eligible LEO would only get a $500 increase from the generic 1.0% raise.

An LEO whose pay is set by special base rates will likely benefit more from the special increase than one whose locality pay previously provided higher compensation.

Next Steps and What to Watch

• OPM will coordinate with agencies beginning September 2, 2025, to formally classify which occupational series or roles are eligible for the higher LEO raise.
• Congress retains final authority. While past alternative pay plans have been overridden—granting higher actual raises—this proposal is subject to legislative response through amendments or appropriations actions.
• Individual LEOs should monitor OPM and agency communications to verify eligibility and determine how the raise will be applied to their specific grade, step, and locality pay base.

Summary

Federal employees under the General Schedule will receive 1.0% base raise but without any locality pay adjustments.

Federal law enforcement officers in designated categories will receive a total 3.8% base pay increase. The locality pay portion of their plan will be frozen for 2026.

The selection criteria for eligible LEOs are currently under review by the agency and OPM, beginning in early September 2025. Also, the plan is subject to Congressional approval or modification. In practice, this means that the 2026 pay raise could actually turn out differently. Until an executive order is issued implementing the 2026 plan, which usually comes out in December, nothing will be finalized.

This alternative pay plan demonstrates a targeted approach: generally restraining pay growth, while selectively prioritizing compensation for key federal law enforcement roles.