The Executive Schedule

The Federal Executive Salary Act of 1964 created the Executive Schedule, a set of five pay levels for the top officials of the executive branch, written into Title 5 of the U.S. Code. Level I covers Cabinet secretaries and a few others of Cabinet rank, such as the Director of the Office of Management and Budget and the Director of National Intelligence. Level II covers deputy secretaries and heads of major agencies, Level III under secretaries, Level IV assistant secretaries, general counsels, and inspectors general, and Level V the heads of smaller agencies and boards. Most of these positions are filled by presidential appointees confirmed by the Senate.

The levels rise each January by the same percentage as the base raise for General Schedule employees unless Congress or the President blocks the increase, and the 2026 raise was 1 percent. For 2026 Level II was set at 228,000 dollars, Level III at 209,600 dollars, and Level IV at 197,200 dollars, with Level I at about 253,000 dollars. Congress has at times frozen what senior political appointees are actually paid below those rates. The schedule also acts as a ceiling for the rest of the government: General Schedule pay may not exceed Level IV, and Senior Executive Service pay is capped at Level II or III.

Because so many salaries are tied to the schedule, freezes and small raises compress pay at the top of the career workforce, where thousands of senior employees earn the same capped salary regardless of responsibility. Agencies say compression makes it harder to recruit and keep experienced managers and specialists, especially compared with private-sector pay. Others say public officials should not expect private-sector salaries and that freezes on political appointees' pay are a sensible symbol of restraint.