S. 3626: Federal Correctional Officer Paycheck Protection Act of 2026

The Federal Correctional Officer Paycheck Protection Act of 2026 aims to improve recruitment and retention of federal correctional officers by amending the pay structure under federal law. Key provisions of the bill include:

1. Special Pay Rates

The bill establishes a new section in the U.S. Code that creates special base rates of pay for federal correctional officers, which will be higher than the standard General Schedule base rate. This new pay rate will replace the existing pay structure for eligible officers.

2. Definition of Federal Correctional Officers

The bill clearly defines what constitutes a federal correctional officer. It includes officers who work for the Bureau of Prisons, focusing on those who have primary responsibilities involving the custody and control of inmates or those who have direct contact with inmates in custodial settings.

3. Calculation of Special Pay Rates

For a federal correctional officer, the special base pay will be calculated as 35% above the applicable General Schedule base rate or Law Enforcement Officer (LEO) special base rate. However, this calculated special rate cannot exceed a certain level that correlates to the level V Basic Pay for executive positions.

4. Wage Increases for Certain Employees

The Attorney General is required to increase the wages of certain employees who meet specified criteria, aiming to provide them with a 35% wage increase while ensuring that their compensation does not exceed a specified executive pay level.

5. Review and Sunset Provision

The bill includes a sunset provision, whereby the increased pay rates would expire after five years unless a review shows that significant progress has been made in retaining officers and reducing reliance on non-custodial staff. The review will be conducted by the Inspector General of the Department of Justice, who must report to Congress on various outcomes related to the Bureau of Prisons' use of staff and their working conditions.

6. Potential Revisions and Extensions

If the review indicates progress in reducing non-custodial staffing and excessive overtime, the provisions of the bill could be extended beyond the five-year sunset period.

Relevant Companies

• ACCO Brands Corporation (ACCO) - As a provider of office products and supplies, ACCO could be impacted by changes in spending on office supplies due to potential budget reallocations within the Bureau of Prisons as a result of this bill.
• California Resources Corporation (CRC) - A potential contractor for jail and prison facilities; changes in operations and financial planning could occur if staffing increase suggests greater operational demand in correctional facilities.