President Proposes Pay Freeze for Federal Workers

Congress must approve two year plan

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    NEWSLETTERS

    The president proposed a freeze on federal salaries for two years to save money.

    Federal workers would get no raise for two years under a plan proposed today by President Barack Obama.

    The president wants to freeze the salaries of all 2 million civilian federal employees. The military would not be affected.

    "The hard truth is that getting this deficit under control is going to require some broad sacrifice, and that sacrifice must be shared by the employees of the federal government," Obama said.

    The freeze would save more than $5 billion over two years, $28 billion over five years and more than $60 billion over 10 years.

    Federal pay is determined by Congress, and lawmakers must approve the president's proposal.

    House Republican Whip Eric Cantor, of Virginia, said this is exactly the kind of savings measure we have to make to restore fiscal sanity in the country. 

    But John Gage, president of the 600,000-member American Federation of Government Employees, called the decision "a slap at working people."

    Congress is not covered by Obama's order, but lawmakers voted last April to freeze their pay, with the House and Senate opting to forgo an automatic $1,600 annual cost-of-living increase.