How does the President and Congress approve or change the proposed federal pay increase?
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Executive summary
The federal pay-adjustment process begins with the President proposing or issuing an alternative pay plan and ends with implementation via an Executive Order and Office of Personnel Management (OPM) action; Congress can influence or override raises through appropriations or statute but does not directly sign the routine GS raise—President Biden finalized a 2.0% average 2025 raise via EO 14132 (1.7% across‑the‑board + ~0.3% locality) [1][2]. Sources show Congress can still affect pay through funding and legislation and that some components (like Federal Wage System changes) require additional agency or committee steps [3][4].
1. Presidential initiation and the “alternative pay plan” route
For statutory pay systems the President typically proposes a pay adjustment in the budget and may later issue an “alternative pay plan” or executive order to set the official across‑the‑board and locality adjustments. In 2025 the President’s executive order (E.O. 14132) authorized a 1.7% across‑the‑board GS increase and locality payments costing about 0.3% of payroll, producing an average 2.0% raise, and OPM then published the new pay schedules [1][2].
2. How OPM and payroll processors make it real
After the President signs an executive order, OPM posts pay tables and provides guidance so payroll centers and agencies can execute the change for the first full pay period in January; agencies’ HR and payroll systems (for example, the National Finance Center) then process personnel actions to apply the new rates [2][5]. The Federal Register notice and OPM guidance are the formal triggers for implementation [1].
3. Congress’s levers: funding, law and political pressure
Congress does not usually “sign” routine GS raises but it can alter outcomes by passing laws, inserting pay directives into appropriations, withholding funds, or refusing to enact budgets that incorporate administration proposals; reporting shows proposals begin in the administration’s budget but “Congress must provide final approval” in the sense of the appropriations and legislative process for some pay-related items [6][3]. In short: the President sets a plan and OPM implements it, but Congress can override or constrain that plan through legislation or appropriations.
4. Exceptions and extra steps for certain groups
Not all pay systems follow the same single-step path. Blue‑collar workers under the Federal Wage System (FWS) depend on DoD wage surveys and committee votes to align schedules, meaning OPM’s GS adjustment is only part of the process; DoD committees or agency procedures may delay or alter when and how those increases appear [4][7]. That explains reporting that tens of thousands of FWS employees were still waiting even after a 2025 GS increase was finalized [7].
5. Military raises and retirees are handled differently
Military pay raises and civilian GS/locality adjustments are separate processes. For example, the 4.5% military increase in FY2025 followed the NDAA process, while civilian pay was set by the President’s EO for GS systems; retiree COLAs are computed differently and may require other statutory calculations or congressional action in different venues [8][6].
6. Political dynamics and timing matter
The path from a White House proposal to an effective raise includes politics and timing: administrations propose in budgets, appropriations committees mark up bills, and Congress’s posture on spending can speed or stall related measures; reporting about 2025 shows Senate appropriations activity and note that final implementation often waits on the legislative calendar and agency steps before the first full pay period in January [3][2].
7. Areas of disagreement and reporting gaps
Sources agree the President’s EO and OPM notice finalized the 2025 GS increases [1][2]. Some outlets emphasize Congress’s ultimate role in appropriations and final approval language [6][3], while others describe the Presidential EO as the final step for civilian pay [8]. Available sources do not mention specifics about any internal White House deliberations or private negotiations with congressional appropriators beyond what’s cited here.
8. What federal workers should watch next
Workers seeking clarity should monitor OPM pay tables and agency payroll guidance for effective dates and special‑rate tables; they should also watch congressional appropriations and DoD wage‑committee activity if they’re FWS employees, since those are common sources of delay or change after an administration-level decision [1][4][7].
Limitations: this summary relies on the provided reporting and notices; it does not attempt to adjudicate any out‑of‑band political claims and avoids details not present in the supplied sources (not found in current reporting).