Trump Proposes 2027 Pay Freeze for Federal Employees
If you work for the federal government, you better not count on a standard pay raise next year. Read on for the details of a new report about an alternative compensation plan proposed by the White House.
Trump Proposes to Freeze Government Salaries
Most civilian federal employees are not expected to receive a pay raise in 2027, according to a new report by Federal News Network. The network recently reported that it obtained a letter to Congress from President Donald Trump last week, recommending that the thousands of employees who work for the federal government not receive the typical annual pay raise.
Trump wrote in the letter that “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." The president went on to say that he has "decided to set at zero the pay adjustment to be made for the 2027 pay year.”
There are some exemptions to the pay freeze. Federal law enforcement and military personnel would still be eligible to receive a raise. These active officers are slated to enjoy a 3.6% to 7% bump in pay.
In defending the decision to exempt the military from the pay freeze, the president wrote to Congress, “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.”
Also in the letter to Speaker of the House Mike Johnson, Trump said that taking away the usual pay raise will not hurt recruitment and retention efforts at federal agencies.
Freeze Decision Continues White House Pattern
The decision by the White House to freeze salaries is a continuation of the Trump administration's goals to trim the fat out of the federal government. Earlier in the term, Trump pulled back on some job protections and opportunities to expand the federal workforce.
The news of the alternative compensation plan proposal is not a surprise to policy hawks. The White House signaled that the salary freezes were imminent in its April budget request that covers the upcoming fiscal year.
The Federal Employees Pay Comparability Act (FEPCA) of 1990 gives the president the power to preempt an automatic salary increase by submitting an alternative pay plan by the end of August. This act was initially intended to ensure that government salaries remain competitive with similar jobs in the private sector.
However, the executive office can override the increases that are predetermined by a specific formula. Congress now has the power to override the proposed changes until December. At that point, the White House can choose to implement the alternate pay plan through the use of an executive order.
There is precedent for these types of salary holds. For instance, in April of 2025, the Office of Management and Budget (OMB) instructed federal agencies to prepare for a pay freeze on salaries for the next fiscal year. However, Trump reversed course in August and issued an alternative pay proposal to Congress that eventually resulted in a 1% pay increase.
The last time that a Trump team froze federal civilian employee salaries was in December 2018 during a partial government shutdown. The newly elected Democratic controlled Congress ended up reversing this decision a few months later, giving an average raise of 1.9% that was retroactive to the beginning of the year.
These holds are also not limited to the GOP. Former President Barack Obama issued a multiyear pause on salary increases from 2011 to 2013 due to federal budget deficit concerns.
For now, federal employees will be closely watching how Congress reacts to the alternative compensation plan. While the GOP currently controls both chambers of the House, the upcoming November midterm elections could swing the balance entirely. This could give Democrats the chance to reverse the decision as they did in 2019.
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