EO-14368
Adjustments of Certain Rates of Pay
- Signed
- Dec 18, 2025
- Published
- Dec 23, 2025
Federal Register: 2025-23844
Source: Federal Register.
Sets Federal Employee and Military Pay Rates for 2026
Impact6/10
What it does
This order sets the pay rates for most federal civilian employees, military service members, Foreign Service officers, Veterans Health Administration staff, senior executives, administrative law judges, and members of Congress, the judiciary, and the Vice President, effective January 1, 2026. It supersedes the prior year's pay order (EO 14132, signed December 23, 2024). It also directs the Office of Personnel Management to assess whether to provide up to a 3.8% pay increase for certain federal law enforcement personnel.
Who benefits
Federal civilian employees on the General Schedule (roughly 1.5 million workers) who would receive a pay increase. Active-duty military members and cadets/midshipmen receiving updated monthly pay rates. Foreign Service officers stationed abroad. Veterans Health Administration clinical and support staff. Senior Executive Service members. Administrative law judges. Federal law enforcement personnel who may receive up to a 3.8% increase. Members of Congress, the Vice President, and federal judges receiving updated salaries.
Who is affected
Federal employees in high-cost metropolitan areas whose locality pay adjustments may not fully keep pace with local private-sector wages. Taxpayers who fund the federal payroll, which runs into the hundreds of billions of dollars annually. Private-sector employers in labor markets where federal pay rates influence local wage competition. Federal contractors whose labor costs may be indirectly affected by shifts in the federal wage baseline. Agencies operating under tight discretionary budgets that must absorb the increased payroll costs.
Supporters argue
Supporters argue that annual pay adjustments are a routine, congressionally authorized function that keeps federal compensation competitive with the private sector, helping the government attract and retain qualified workers across critical fields including defense, healthcare, and law enforcement. They contend the order faithfully implements statutory mandates under Title 5 and Title 37 of the U.S. Code, which explicitly delegate pay-setting authority to the president, and that maintaining competitive pay strengthens national security and the quality of public services.
Opponents argue
Opponents argue that the pay adjustment levels set by this order may be insufficient to close the gap between federal and private-sector compensation in high-cost areas, undermining recruitment and retention goals the order is meant to serve. They also contend that the discretionary authority granted to the Office of Personnel Management to determine law enforcement pay increases — up to 3.8% — lacks transparent criteria, potentially creating inequities across agencies and employee categories that Congress did not specifically authorize.
Constitutional basis
Executive orders rest on constitutional authority or statutory delegation. This summary describes the legal grounding cited or implied by the order.
Authority is grounded in Article II's vesting and Take Care clauses, combined with explicit statutory delegations: 5 U.S.C. §5303 (General Schedule adjustments), 5 U.S.C. §5304/5304a (locality-based comparability payments), 37 U.S.C. §1009 (uniformed services pay), and related provisions of Titles 5, 22, 28, 37, and 38 of the U.S. Code. Congress has delegated pay-setting authority to the president within defined statutory frameworks, making this a statutory execution order rather than a unilateral Article II action.