Adjustments of Certain Rates of Pay
12/18/2025
Action Summary
- Statutory Pay Systems Adjustments:
- General Schedule: Adjustments detailed in Schedule 1.
- Foreign Service Schedule: Adjustments detailed in Schedule 2.
- Veterans Health Administration: Adjustments detailed in Schedule 3.
- Senior Executive Service: Pay ranges updated as provided in Schedule 4.
- Executive, Legislative, and Judicial Salaries:
- Executive Schedule: Changes per Schedule 5.
- Vice President and Congress: Adjustments outlined in Schedule 6.
- Justices and Judges: Updates provided in Schedule 7.
- Uniformed Services and Other Personnel:
- Uniformed Services: Monthly basic pay set out in Schedule 8; effective January 1, 2026.
- Cadet or Midshipman Pay: Also defined under Schedule 8.
- Federal Law Enforcement Personnel: Possible additional increase up to 3.8% subject to Director’s assessment.
- Locality-Based Comparability Payments:
- Detailed in Schedule 9 with implementation and publication requirements.
- Administrative Law Judges: Pay adjustments specified in Schedule 10.
- Effective Dates and Supersession:
- Schedule 8 effective January 1, 2026; all other schedules effective on the first applicable pay period on/after January 1, 2026.
- Previous Executive Order 14132 (December 23, 2024) is superseded by this order.
- Authority and Issuance: Ordered and signed by President Donald J. Trump on December 18, 2025.
Risks & Considerations
- The adjustments of pay rates across various federal pay systems, including the General Schedule and the Senior Executive Service, may lead to increased competition for talent, affecting Vanderbilt University’s ability to attract and retain top-tier faculty and staff. Compensation packages may need to be reassessed to remain competitive.
- The focus on locality-based comparability payments could present challenges in regions where living costs are higher, requiring institutions like Vanderbilt to consider similar adjustments to ensure staff satisfaction and retention.
- Changes in pay rates for federal law enforcement and uniformed services personnel could impact the recruitment landscape for students in related fields, potentially affecting enrollment numbers and the strategic focus of certain programs.
- The adjustments may necessitate a review of partnerships and contracts with federal agencies, particularly those relating to research funding and collaborative projects, to ensure compliance with the new pay structures and maintain strong governmental relationships.
Impacted Programs
- Vanderbilt’s Human Resources Department may need to conduct a comprehensive market analysis to align compensation strategies with the new federal pay adjustments.
- The Owen Graduate School of Management could see increased interest in programs related to human capital management, as organizations seek to navigate changes in compensation structures.
- The School of Engineering may need to adapt its curricula to address shifts in defense and security-related research due to changes in pay for uniformed services, potentially impacting research funding and focus.
- The Law School might experience a shift in interest towards administrative law due to the adjustments in pay for administrative law judges, possibly affecting course offerings and career services strategies.
Financial Impact
- The new pay adjustments could lead to increased operating costs for Vanderbilt University as it strives to offer competitive salaries, requiring potential reallocations in the budget.
- There may be opportunities to secure federal funding for research that aligns with the priorities of agencies affected by the pay changes, enhancing the university’s research portfolio and financial inflow.
- Increased pay for specific federal roles could influence student career choices, potentially affecting tuition revenue streams from programs that are less aligned with these new incentives.
- The need to adjust salary structures may lead to changes in financial aid offerings to remain attractive to prospective faculty and staff candidates, impacting overall financial planning.
Relevance Score: 3 (The order presents moderate risks primarily involving compliance and competitiveness in hiring and retention.)
Key Actions
- Human Resources Department should review the adjustments in statutory pay systems and analyze any necessary updates to salary structures and budgeting for staff, particularly those employed in federally funded positions. Understanding these changes will be essential to maintain competitive compensation packages.
- The Office of Federal Relations should monitor the implications of pay adjustments for federal civilian law enforcement personnel to assess how these might affect partnerships or collaborations with federal agencies.
- Financial Planning and Analysis should evaluate the impact of the locality-based comparability payments on operational costs, especially for staff in high-cost areas. This may affect financial forecasting and resource allocation.
Opportunities
- Vanderbilt could leverage the pay adjustments as an opportunity to attract top talent from federal sectors by aligning its compensation strategies with federal standards.
- By closely examining the new pay schedules, Vanderbilt’s Policy Institutes can engage in research on the broader economic impacts of these changes, potentially influencing public policy development and discourse.
Relevance Score: 3 (Some adjustments are needed to processes or procedures regarding compensation and economic analysis.)
Timeline for Implementation
- Schedule 8: Effective January 1, 2026.
- Other Schedules: Effective on the first day of the first applicable pay period beginning on or after January 1, 2026.
The shortest timeline from the issuance of this order (December 18, 2025) to the effective date (January 1, 2026) is calculated to be less than 30 days.
Relevance Score: 5
Impacted Government Organizations
- Office of Personnel Management (OPM): Charged with managing and implementing the adjustments to pay schedules, including oversight of the General Schedule, Senior Executive Service, and certain law enforcement pay increases.
- Department of Veterans Affairs (Veterans Health Administration): Specifically impacted through Schedule 3 for statutory pay adjustments applicable to its employees.
- Department of State: Affected via the Foreign Service Schedule (Schedule 2) which governs the pay rates of its Foreign Service personnel.
- Executive Branch Offices: This includes positions under the Executive Schedule (Schedule 5) as well as the office of the Vice President whose pay is adjusted by this order.
- United States Congress: Impacted by pay adjustments specified under Schedule 6 for legislative salaries.
- Federal Judiciary: The order affects the salaries of justices and judges through adjustments detailed in Schedule 7.
- Uniformed Services: Pay adjustments for members of the uniformed services are covered under Schedule 8, affecting military personnel across the government.
- Administrative Law Judges: Their pay, as detailed in Schedule 10, is adjusted under this executive action, impacting ALJs across various federal agencies.
Relevance Score: 3 (Between 6-10 distinct government organizations or sectors are impacted by this pay adjustment order.)
Responsible Officials
- Director of the Office of Personnel Management – Tasked with assessing potential increases for Federal civilian law enforcement personnel and implementing locality-based comparability payments, including coordinating with agencies and publishing the required notice in the Federal Register.
Relevance Score: 4 (The directive impacts the head of an agency responsible for significant policy and administrative actions.)