Executive Order Adjusts Federal Pay Rates Across Multiple Systems
Impact Score: 3.6
Timeline: Effective January 1, 2026, with most pay adjustments applying from the first applicable pay period on or after this date.
Summary: On December 18, 2025, President Donald J. Trump signed an executive order revising pay rates for various federal pay systems, including the General Schedule, Foreign Service, Veterans Health Administration, Senior Executive Service, and pay for uniformed services and law enforcement personnel. The order also updates salaries for executive, legislative, and judicial offices and administrative law judges. Adjustments emphasize locality-based comparability payments and involve significant implications for recruitment, retention, and compensation strategies, particularly for organizations like Vanderbilt University.
Key Actions: Human Resources should review and update salary structures to maintain competitiveness; the Office of Federal Relations must monitor impacts on federal partnerships; and Financial Planning should assess costs linked to locality payments. Additionally, Vanderbilt can leverage these changes to attract talent and explore research on economic impacts.
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