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Fortune
Fortune
Sasha Rogelberg

'Critical employees will begin to retire': Trump’s new pay plan will deny most federal roles a raise, and it has workers warning of a retention crunch

Donald Trump sits at his desk in the Oval Office. (Credit: Andrew Harnik—Getty Images)

President Donald Trump is taking action to ensure most federal workers do not see a pay increase next year and denying concerns about its impact on employee retention and agency productivity, despite warnings to the contrary.

Trump’s 2027 fiscal budget proposal did not mention pay increases for civilian federal employees, who include air traffic controllers, IRS tax auditors, and food safety inspectors. In a letter to House Speaker Mike Johnson last week, Trump confirmed that these employees would not see a pay increase for next year. Meanwhile, members of the military would see between a 5% to 7% pay increase, part of an effort to “rebuild our military’s readiness and capabilities.”

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