Update to Fiscal Year 2026 Prevailing Rate Pay Adjustments

CPM 2026-05 February 23, 2026 Memorandum for Chief Human Capital Officers From: Veronica E. Hinton Associate Director, Workforce Policy and Innovation Subject: Update to Fiscal Year 2026 Prevailing Rate Pay Adjustments On December 18, 2025, Compensation Policy Memorandum (CPM) 2025-20 notified agencies that the Further Consolidated Appropriations Act, 2024, contained provisions affecting the determination of pay adjustments for certain prevailing rate (wage) employees. Division A of the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 (Public Law 119-37, November 12, 2025), extended the provisions of the FY 2024 Act through January 30, 2026. This new memorandum is to notify you that Division E of the Consolidated Appropriations Act, 2026 (the new FY 2026 Act) supersedes the previous FY 2026 Act. The new FY 2026 Act continues the pay limitation provisions of section 737(a) and the floor pay adjustments required by section 737(b) with no changes. New wage schedules will reference to this new memorandum. For further information, please contact OPM’s Pay Systems group at (202) 606-2858 or by email at paypolicy@opm.gov. cc: Deputy Chief Human Capital Officers Human Resources Directors