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.