Federal employees will see a 1% across-the-board pay raise starting January 11, 2026, under President Donald Trump’s Alternative Pay Plan for 2026. While this modest increase reflects a restrained fiscal approach amid tightening federal budgets, the administration carved out an additional 2.8% special raise for law enforcement personnel, citing national security and recruitment challenges.
The Office of Personnel Management (OPM) confirmed that new pay tables will be released before the end of 2025, and that the adjustment will apply to base pay, affecting retirement, overtime, and other pay-related benefits.
However, unlike in previous years, locality pay rates will remain frozen at 2025 levels, meaning that employees in high-cost metropolitan areas will not see the usual regional adjustment this cycle.
OPM COLA Increase 2026: Overview
| Category | Details (2026) |
|---|---|
| Plan Type | Alternative Pay Plan (Presidential directive) |
| General Pay Raise | 1% across-the-board |
| Locality Pay | Frozen at 2025 levels |
| Law Enforcement Adjustment | +2.8% additional raise via special rate |
| Effective Date | January 11, 2026 |
| Administered By | U.S. Office of Personnel Management (OPM) |
| Salary Cap | Executive Schedule Level IV — approx. $197,200/year |
| Agencies Impacted | All federal agencies; special increases for law enforcement roles |
What the Alternative Pay Plan Means?
Each year, the president has authority to set an Alternative Pay Plan (APP) if standard pay adjustments under the Federal Employees Pay Comparability Act (FEPCA) are deemed unaffordable or unnecessary for national interest.
In this case, the 2026 plan reflects fiscal caution while targeting critical security roles for additional compensation.
“The President considers these agents to be critical to protecting citizens and keeping the country safe,” OPM said in its accompanying statement. “Without additional incentives, the government risks losing specialized personnel in key operational areas.”
Special Pay Rates for Law Enforcement
Law enforcement officers will see the biggest boost from this year’s plan. The 2.8% special rate will be administered through Title 5 U.S. Code provisions allowing OPM to address recruitment and retention challenges in difficult or high-demand occupations.
These special salary rates apply to:
- Customs and Border Protection (CBP), including Border Patrol agents and Air and Marine Interdiction Officers
- Immigration and Customs Enforcement (ICE) special agents and deportation inspectors
- Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents
- U.S. Marshals Service, Secret Service, and Federal Bureau of Prisons (BOP) correctional officers
- Federal Protective Service and National Park Service law enforcement rangers assigned to the U.S. Park Police
“We need to strengthen recruitment pipelines in agencies that serve as the nation’s first line of defense,” said Rachel Edmonds, a compensation policy expert and former DHS advisor. “The 2.8% add-on recognizes that mission-critical roles have seen higher turnover than the rest of the federal workforce.”
Implementation and Timeline
The OPM confirmed that all new pay tables reflecting the 2026 increases will be published before the end of 2025, with the raises officially effective January 11, 2026.
| Key Date | Action |
|---|---|
| October 2025 | OPM finalizes pay tables for 2026 |
| December 2025 | Publication of official 2026 pay schedules |
| January 11, 2026 | New base and special rates take effect |
| February 2026 | First paychecks reflecting new rates issued |
This implementation ensures uniform adoption across all agencies and proper integration into retirement and benefits calculations.
Locality Pay Frozen at 2025 Levels
One of the most notable aspects of the 2026 plan is the freeze on locality pay adjustments. Typically, locality pay accounts for cost-of-living differences across regions, giving higher compensation to employees in cities like Washington D.C., San Francisco, or New York.
By freezing these rates, the administration effectively caps regional pay disparities at 2025 levels, impacting roughly 1.3 million federal employees in locality-based areas.
“The freeze may feel like a pay cut in real terms, especially in high-cost regions,” noted Mark Jacobsen, a senior economist with the Federal Managers Association. “But the administration is balancing inflation control with long-term fiscal restraint.”
Fiscal Rationale and Policy Goals
According to White House budget documents, the decision to limit broad pay growth stems from a need to contain federal wage spending while redirecting resources toward defense and security initiatives.
Officials argue that the law enforcement adjustment ensures the federal government can retain experienced officers in key security positions, such as immigration enforcement, border control, and critical infrastructure protection.
The administration’s broader goal, as stated in the Alternative Pay Plan memorandum, is to maintain operational readiness while avoiding inflationary wage pressures within the federal payroll system.
Impact on Federal Employees
The new pay plan has mixed implications for different parts of the federal workforce:
- Rank-and-file employees will see a 1% raise, barely keeping pace with inflation, which is projected around 2.3% in early 2026.
- Law enforcement agents in designated roles will gain a total raise of approximately 3.8%, improving retention incentives.
- High-cost region employees will see stagnation due to the locality pay freeze, potentially affecting morale and purchasing power.
- Senior Executives and GS-15 employees near the salary cap ($197,200) may not receive the full increase because of pay ceiling limitations.
How the COLA Interacts with Benefits?
Although the general pay raise is modest, it still influences key benefit calculations:
- Federal Employees Retirement System (FERS): Higher base pay means slightly higher future pension benefits when it comes to Federal Employees Retirement System.
- Thrift Savings Plan (TSP): Matching contributions rise with gross salary increases.
- Overtime and Differential Pay: Adjustments to base pay automatically flow through to these categories.
- Retirement Contribution Deductions: Employee contributions to FERS and Social Security will rise proportionally with new earnings.
Preparing for the 2026 Adjustment
Federal employees can prepare for the upcoming raise by:
- Reviewing updated pay tables once published on OPM.gov.
- Checking annual leave and overtime calculations under new rates.
- Confirming retirement contribution changes with agency HR.
- Planning for minor adjustments in tax withholding due to higher gross pay.
Expert Outlook: Fair but Limited
The 2026 raise has drawn mixed reactions from employee groups and labor unions.
“Any raise is welcome, but 1% doesn’t reflect the workload or inflation federal employees face,” said Jessica Lee, President of the National Treasury Employees Union (NTEU). “We will continue pushing for parity with private-sector wage growth.”
However, policy analysts note that the law enforcement bonus could set a precedent for targeted compensation reforms, focusing on recruitment bottlenecks rather than blanket raises.
“This plan shows a shift toward performance-driven compensation within the public sector,” said Dr. Leon Stewart, a public administration expert at Georgetown University. “It rewards essential workers in high-risk areas while maintaining fiscal control.”
FAQs
When does the 2026 federal pay raise take effect?
The new OPM pay tables become effective January 11, 2026.
What is the base pay raise for federal employees?
A 1% across-the-board increase will apply to all federal workers.
Will locality pay increase?
No. Locality pay is frozen at 2025 levels under the Alternative Pay Plan
Who qualifies for the additional 2.8% raise?
Law enforcement personnel in agencies such as CBP, ICE, FBI, DEA, and U.S. Marshals will receive this special pay rate.
Does the raise affect retirement and overtime pay?
Yes. The increase affects base salary, which impacts retirement calculations, overtime, and benefits.
What is the salary cap for 2026?
The maximum annual salary under Executive Schedule Level IV remains around $197,200
.