On March 11, President Biden announced his budget request for Fiscal Year 2025. He is calling for a 2.0 percent pay raise for the federal workforce in 2025. The budget request outlines updates and initiatives from the President’s Management Agenda (PMA) aimed at recruitment and retention, making the federal workforce a model employer, and learning from the Covid-19 pandemic.

Federal Managers Association (FMA) National President Craig Carter issued a press release on the day the budget request was announced, welcoming Biden’s priorities. Carter expressed full support for the 4.5 percent raise proposed for the uniformed military in 2025. He also urged President Biden and Congress to provide an equal raise for federal employees, rather than the proposed 2.0 percent.

“For very good reasons, pay parity has a longstanding tradition and should be honored in 2025, Carter wrote. “While feds received a bigger boost in 2024, federal pay continues to lag far behind inflation, and retention of feds remains a severe risk. The Federal Salary Council reported in November 2023 that federal workers earned more than 27 percent less than private sector counterparts, a growing disparity that will only force more of the best and brightest out of federal service. In January, FMA endorsed the Federal Adjustment of Income Rates (FAIR) Act (H.R. 7127 / S. 3688), which would provide for a 7.4 percent pay raise in 2025. We will continue to advocate for the FAIR Act this year,” Carter said.

Carter also commented on the continuing focus on the federal pay ceiling cap and pay compression, as outlined in the budget request. “This issue plays a serious role in recruitment and retention to the federal workforce. If an employee is offered a promotion at a higher level, with more responsibilities, but no corresponding salary increase, will they take on the new role? Many employees who are now capped are tempted to leave the government for the private sector where there is no pay cap. We look forward to working with the administration on the targeted pay flexibilities noted in the budget request.”

Additionally, Carter celebrated the goals and priorities of the President’s Management Agenda, “including elements strengthening hiring systems, the recruitment pipeline to the workforce, empowering managers, and critical civil service protections.” He expressed FMA’s continuing work with the Office of Personnel Management, the Office of Management and Budget, and others to shape those efforts.

“We recognize the release of the President’s budget proposal is one part of the process and we look forward to taking a closer look at the President’s proposals and priorities in the days and weeks to come,” Carter wrote. “We also anticipate what is to come from the House of Representatives and the U.S. Senate. FMA pledges to work with the Biden Administration and both chambers of Congress as they work on FY25 appropriations,” he concluded.