Citing deficit, Obama to freeze federal worker pay

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President Barack Obama will announce a two-year pay freeze for federal employees that the White House says is necessary to put the country on sound fiscal footing.

The White House said Monday that the freeze would apply to all civilian federal employees, including those working at the Department of Defense, but would not affect military personnel. The freeze will save $2 billion during fiscal year 2011, according to the White House.

Obama is expected to announce the pay freeze at the White House later Monday.

The chairman of Obama’s bipartisan deficit commission has proposed a three-year freeze in pay for most federal employees as part of its plan to reduce the nation’s growing deficit. The commission’s final report is due to be released later this week.

Shortly after taking office in January 2009, Obama froze salaries of top White House. He extended that freeze to political appointees across the government in last year’s budget, and also eliminated bonuses for political appointees.

One Response to Citing deficit, Obama to freeze federal worker pay

  1. You have to cut somewhere and you have to start somewhere, if it saves only $2 Billion, so be it, but lets not belittle any savings small or large because that’s the kind of attitude that helped get the Federal Government into this mess in the first place. Every Billion matters and if they cut enough of those Billions, they add up.

    November 29, 2010 at 7:15 pm