Which metropolitan statistical areas saw the largest proposed locality increase for 2026 and why?
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Executive summary
The Federal Salary Council and related OPM recommendations for 2026 identify a small set of metropolitan and combined statistical areas as having the largest proposed locality reclassifications — including Walla Walla, WA CSA; Syracuse–Auburn, NY CSA; Waco, TX MSA; Watertown–Fort Drum, NY MSA; and Wichita–Winfield, KS CSA — driven by Bureau of Labor Statistics (BLS) wage-survey data and three years of validated local data that show pay disparities versus nonfederal comparators [1] [2]. The broader political context is a presidential Alternative Pay Plan that froze locality rates for 2026 while proposing a 1% across‑the‑board GS base increase (and special 3.8% increases for some law‑enforcement officers), which complicates how any proposed locality-area changes would affect take‑home pay [3] [4].
1. Small number of metros lead the pack — which places and what was proposed
OPM materials and the Federal Salary Council working papers single out several specific Core Based Statistical Areas (CBSAs) as the primary changes under consideration: Walla Walla, WA CSA and the Syracuse–Auburn, NY CSA were cited as new locality pay areas in the Council’s recommendation document, while a separate working-group report names Waco, TX MSA; Watertown–Fort Drum, NY MSA; and the Wichita–Winfield, KS CSA for designation or reclassification based on recent BLS survey data [1] [2].
2. Why these metros? Three years of BLS data and measured pay gaps
The working group explicitly tied its recommendations to BLS survey methodology and the availability of a full three-year data series for those areas. That multi‑year BLS data allowed the Council to quantify consistent private‑sector pay differentials and displacement from the “Rest of U.S.” baseline — the core criterion the locality program uses to justify creating separate locality pay areas [1] [2].
3. The mechanics: what a new locality designation changes
Creating a new locality pay area or moving counties into an existing locality increases the comparability payment for federal employees “in addition to” any GS base-rate increase; the Council’s documents stress that proposed locality increases are expressed as comparability percentages derived from BLS salary surveys [1]. The working group estimated that a handful of these changes would affect only a few thousand GS employees (for example, about 4,368 employees for two of the areas discussed), underscoring that the largest numerical locality changes in 2026 are geographically concentrated rather than nationwide [2].
4. Political overlay: a locality freeze complicates impact
Even where the Council and OPM recommend new or expanded localities, the President’s Alternative Pay Plan for 2026 directed a 1% base increase and froze locality rates at 2025 levels for most employees; OPM and other federal reporting note that locality increases were not recommended in the President’s submission to Congress for 2026 [3] [5] [4]. That freeze means approved locality-area reclassifications may not translate into higher pay in January 2026 unless later action by the Pay Agent, the president, or Congress changes the freeze [3] [4].
5. Competing viewpoints and what’s at stake
Advocates for expanding locality areas argue that targeted reclassifications correct persistent pay disparities and improve federal recruiting and retention in mid‑sized metros (the Council’s recommendations rely on BLS comparators to make this case) [1] [2]. Opponents or cautious observers point to the cost implications — historically, large automatic locality increases have triggered presidential alternative plans — and to the political reality that an executive freeze or congressional action can override technical recommendations [6] [7].
6. Limitations in available reporting
Available sources enumerate the specific metro/CSA candidates and the data‑basis (three years of BLS data) but do not provide final enacted locality percentage increases for each MSA in 2026, nor do they show how the Pay Agent ultimately resolved every recommendation; the president’s Alternative Pay Plan and OPM notices indicate a freeze that would blunt immediate effects [1] [3] [2]. If you need precise dollar impacts for specific GS grades or steps in each MSA, current reporting does not include finalized locality-rate tables reflecting both Council recommendations and the administration’s freeze (not found in current reporting).
7. Bottom line — technical fix meets political brake
Technically, the largest proposed locality-area increases in 2026 are concentrated in a handful of smaller metros and CSAs identified by the Federal Salary Council and its working group — designations supported by multi‑year BLS survey evidence [1] [2]. Politically, the administration’s decision to freeze locality pay for 2026 and to prioritize a modest 1% base raise (with targeted LEO boosts) means those locality redesignations may not produce higher pay immediately without further administrative or congressional action [3] [4].