Odds of a 2% federal pay raise and other workforce items from Senate spending bills (2024)

As Senate appropriators hammer out their version of fiscal 2025 government spending plans, several key areas affecting the federal workforce remain at play — one of which brings feds a step closer to a 2% federal pay raise next year.

The Senate Appropriations Committee advanced another four 2025 spending bills last week, with largely bipartisan support, bringing the total to 11 out of 12 spending bills that have so far advanced out of the committee.

For one, the committee unanimously advanced the Financial Services and General Government spending bill in a vote of 27-0. The legislation, if enacted, would appropriate about $27.9 billion to the covered agencies for 2025, a roughly 4.4% increase over enacted 2024 spending levels.

With the committee’s advancement of the bill, federal employees are another step closer to seeing a 2% federal pay raise in 2025. Appropriations committee members in the Senate, and previously in June in the House, have remained silent on the raise, indicating their likely alignment with the White House’s federal pay raise proposal from March.

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At the same time, federal unions and other employee organizations have pushed for a larger federal pay raise in 2025, calling for a 7.4% pay boost rather than the 2% plan from the Biden administration.

The 2025 federal pay raise, however, won’t be official until President Joe Biden issues an alternative pay plan and signs an executive order to enact next year’s pay bump. In most years, presidents sign the executive order enacting the annual pay boost in December.

And for fiscal 2025 appropriations, nothing is final until the Senate and House reach a government spending agreement, something that’s not likely to happen for months to come. Although Senate appropriators have reached largely bipartisan agreements for next year’s spending levels, Democratic committee members in the House have — unsurprisingly — come out in strong opposition to the spending cuts and policy riders that GOP members are considering.

While Senate lawmakers were silent on the federal pay raise, several other provisions in the appropriations committee’s report language reveal many of the Senate’s priorities for the federal workforce as the next fiscal year approaches.

A closer eye on locality pay

In report language accompanying the financial services and general government legislation, Senate appropriators said they are “strongly” urging the Office of Personnel Management to review and issue clarifying guidance on how locality pay works for federal employees with telework agreements.

Specifically, the lawmakers are asking OPM to look more closely at whether employees are being paid in the appropriate locality pay area for where they are geographically located, and whether that aligns with their official duty station.

A few other members of Congress have recently raised questions about how locality pay should work for teleworking employees. In the new report language, the Senate lawmakers are also calling on OPM to tell agencies to train employees on the details of locality pay, and conduct reviews to ensure the regulations are being appropriately followed.

If the provision on locality pay remains included in the final spending package for 2025, OPM would have 120 days to complete the committee’s requests once the legislation is enacted.

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Another attempt to reform federal hiring

Lawmakers are also urging OPM to continue looking at ways to improve and reform the federal hiring process, a topic that’s remained prevalent for years. In particular, Senate appropriators focused on the speed of the recruitment process, as well as barriers to federal employment.

“The committee is concerned with the length of time it takes the federal government to hire qualified employees,” the lawmakers wrote in report language accompanying the bill. “Rigid rules and long delays in the hiring and interview process discourage top candidates from applying for or accepting federal positions.”

The committee called on OPM to get input directly from the source: federal hiring managers themselves. OPM should collect information on the specific challenges hiring managers face, and what changes might be most beneficial to them, the committee said.

OPM, at the same time, is already looking to add more transparency on time-to-hire for agencies. As part of the President’s Management Agenda, OPM released a time-to-hire dashboard this month, detailing hiring trends over time, and how frequently candidates accept federal job offers. On average, agencies needed 101 days to hire a federal employee in 2023.

Along with time-to-hire concerns, appropriations committee members also focused on agency communications throughout the hiring process, and how much information job candidates receive about the status of their applications.

“The committee strongly encourages agencies to take appropriate measures, including consulting with OPM on how agencies can fully utilize the tools and technology available to them, to ensure the delivery of timely communications to applicants about their application status with notifications for each applicable stage of the hiring process,” the committee wrote.

Recruiting military spouses for federal jobs

The report language from Senate appropriators also pushed OPM to do more to encourage military spouses to join the federal government’s ranks.

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Agencies have a special hiring authority aiming to more easily and quickly onboard military spouses and other similar groups, as well as a strategic plan from OPM on how to recruit and retain military spouses. But despite the resources, lawmakers said agencies may not be using the recruitment options consistently enough.

“The committee is aware that eligibility determinations for the military spouse non-competitive hiring authority occur on a case-by-case basis at the discretion of each individual federal hiring authority,” the committee wrote. “As a result, military spouses may not have maximized applicable federal hiring authorities and exceptions available to them.”

Hiring military spouses has been a priority for agencies for several years. Currently, military spouses face a 21% unemployment rate, due in part to the challenges of finding work amid the transitory lifestyle that often comes with being part of a military family.

The committee is now asking OPM to act as somewhat of a mediator for the hiring authority by getting better information to military spouses on the topic, while also helping agencies better find and connect with the candidate pool.

Digging into federal telework, office space

The committee’s report language once again lays out requirements for data and other information on federal telework and return-to-office policies at agencies.

Senate appropriators are specifically looking for information in six key areas related to federal telework and office space. They’re asking the Office of Management and Budget for details on agencies’ return-to-office action plans, current employee telework levels, telework policies, agreements with unions on telework, staff productivity levels, office space costs and utilization rates, as well as any plans to reduce those costs.

Notably, the plethora of requests from the committee are virtually identical to a provision included in the 2024 spending package, which was enacted in March. Despite the 90-day deadline from the 2024 spending legislation, OMB has not yet publicly released its report on telework and office space to Congress.

Many questions from Congress on federal telework arose after OMB issued an April 2023 memo asking agencies to scale back on telework, and instead increase “meaningful” in-person presence. At the same time, there has been a push to reduce the federal footprint and mitigate the costs of underutilized office space.

If the spending bill is ultimately enacted including the telework provision, OMB would once again face a 90-day deadline to send the information to Congress.

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Odds of a 2% federal pay raise and other workforce items from Senate spending bills (2024)

FAQs

What is the proposed GS pay increase for 2025? ›

Adjustment to Base

This includes an assumed federal adjustment effective January 2025 of 2.0 percent and annualizing the January 2024 adjustment of 5.2 percent. $0.169 million Salary and Expenses.

What is the federal raise for 2024? ›

The Biden Administration has worked to reverse these trends, providing federal employees a 4.6 percent pay raise in 2023 and a 5.2 percent raise in 2024. Nonetheless, federal employee pay increases have failed to keep pace with rising labor and living costs.

What is the pay raise for the NDAA 2025? ›

Compensation: The bill fully funds the 4.5% pay raise for servicemembers requested in the President's budget request.

How do pay increases work in the federal government? ›

Each grade has 10 step rates (steps 1-10) that are each worth approximately 3 percent of the employee's salary. Within-grade step increases are based on an acceptable level of performance and longevity (waiting periods of 1 year at steps 1-3, 2 years at steps 4-6, and 3 years at steps 7-9).

Will military retirees get a raise in 2025? ›

Yes, But It Will Be Lower Than Expected. Yes, the latest 2025 COLA increase estimate is a 2.6%, which will be applied to VA disability compensation rates effective December 1, 2024, payable beginning January 1, 2025.

What is the pay raise for the Army in 2025? ›

Both would give additional 15% pay raises to service members in the E-1 through E-3 pay grades amid concerns that the military services — the. For those junior members, the 2025 raise would total 19.5%, easily the biggest military pay raise since 1949, according to historical figures detailed in DoD budget documents.

What is the projected federal cola for 2024? ›

What is the amount of the cost-of-living adjustment? For the year 2024, annuitants who retired under CSRS will receive 3.2 percent increase and those who retired under FERS will receive a 2.2 percent increase.

What will the cost-of-living increase be for 2024? ›

Since 1975, the Social Security Administration (SSA) has made an annual cost-of-living adjustment to account for changes in inflation. The COLA in 2024 was 3.2%.

What will the federal minimum wage be in 2024? ›

Federal Minimum Wage Information
State20142024
California$9.00$16.00
Colorado$8.00$14.42
Connecticut$8.70$15.69
Delaware$7.75$13.25
30 more rows

How big will the 2024 military pay raise be? ›

This year's military pay raise will be 5.2 percent, making it one of the biggest annual pay raises in the last 40 years. Military retirees and disabled veterans will also see a cost-of-living increase of 3.2 percent in their monthly checks.

What is the dod appropriations bill 2025? ›

This bill provides FY2025 appropriations to the Department of Defense (DOD) for military activities. (The bill excludes military construction, military family housing, civil works projects of the Army Corps of Engineers, and nuclear warheads, which are all included in other appropriations bills.)

What is the proposed pay increase for the dod? ›

The Senate committee's version of the 2025 NDAA, advanced last week, supported a 2% federal pay raise for civilian feds and a 4.5% raise for military members.

Is GS-13 a high position? ›

The GS-1 through GS-7 range generally marks entry-level positions, while mid-level positions are in the GS-8 to GS-12 range and top-level positions (senior managers, high-level technical specialists, or physicians) are in the GS-13 to GS-15 range.

Will federal employees get a pay raise in 2024? ›

That figure came in well below Biden's previous pay raise plans—in 2024, federal workers saw an average 5.2% increase; in 2023, the increase was 4.6%; and in 2022, 2.2%.

What is the GS 2 step rule? ›

The two-step promotion rule states that a GS employee promoted to a position in a higher grade is entitled to basic pay at the lowest rate of the higher grade that exceeds his or her existing rate of basic pay by not less than two step increases of the grade from which promoted.

What are the new locality pay areas for OPM 2024? ›

2024 Locality Pay Area Definitions

The four new locality pay areas established by the final regulations are Fresno-Madera-Hanford, CA; Reno-Fernley, NV; Rochester-Batavia-Seneca Falls, NY; and Spokane-Spokane Valley-Coeur d'Alene, WA-ID.

Which GS step increases by year? ›

As a GS employee, you have to wait one year to increase to a step 2, 3, or 4. You must wait two years before increasing to step 5, 6, or 7. Lastly, you must wait three years before increasing to step 8, 9, or 10. This means that if you join TTS at step 1, you'll proceed to step 2 the following year.

What is the pay raise for the defense bill? ›

There's no greater responsibility than supporting our servicemembers and their families, which is why the bill includes a 4.5% pay raise for all military personnel, plus $2.5 billion towards an additional 15% pay raise for junior enlisted servicemembers.

What is the Federal Employee pay Comparability Act? ›

FEPCA was enacted to provide guidelines to achieve pay comparability between Federal and non-Federal jobs. FEPCA was enacted as Section 529 of the Treasury, Postal Service and General Government Appropriations Act, 1991 (Public Law 101-509, signed into law on 5 November 1990).

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