Obama Seeks Pay Freeze for Federal Workers

Updated at 12:36 p.m. on November 29.

President Obama announced today that he's proposing a two-year pay freeze to civilian military and federal employees to help reduce the federal deficit and ensure America remains competitive in the years to come.

"I did not reach this decision easily," Obama said during a press conference in the Eisenhower Executive Office Building. "This is not just a line item on a federal ledger. These are people's lives."

He noted, as did other officials, that he has already taken steps to reduce unnecessary spending, including proposing a three-year freeze on all non-security discretionary spending.

The pay freeze would save $5 billion during the next two years, and $28 billion during the next five years. The White House also projects that the freeze will save more than $60 billion during the next 10 years. Congress would have to approve the pay freeze.

"This is about finding ways to deal with the deficit and cut spending," said Office of Management and Budget Deputy Director for Management Jeffrey Zients in a conference call with reporters ahead of Obama's announcement.

The freeze will apply to all civilian federal employees, including those in various alternative pay plans and those working at the Department of Defense--but not military personnel, according to the White House.

The announcement of the pay freeze may be an attempt to signal to Republicans that Obama is serious about cutting spending. The GOP have long advocated for that type of spending control with no success, and it was a campaign promise made by many incoming legislators.

Presumptive House Oversight and Government Reform Chairman Darrell Issa, R-Calif., said the pay freeze is "necessary and quite frankly, long overdue." He also noted that the GOP has been pushing for such cuts, as outlined in its "Pledge to America."

The size of federal salaries stirred debate earlier this fall when USA Today reported that the percentage of federal employees making $100,000 or more jumped from 14 percent to 19 percent during the first 18 months of the recession, including a jump in Defense Department civilian employees from 1,868 to 10,100 making more than $150,000. According to the Office of Personnel Management, that represented a 6.6 percent increase in federal salaries during the recession, compared to only 3.9 percent in the private sector.

When reporters raised the issue of increasing federal salaries, Zients denied that the pay freeze was linked to the reports, insisting that the decision was only made "in the context of the difficult deficit situation."

The president had proposed a 1.4 percent pay hike for civilian and military employees in his fiscal 2011 budget. The Senate Appropriations Committee in July approved legislation that met Obama's request for the civilian raise, but House appropriators have been silent on the issue.

Zients noted that the proposed freeze does not mean that federal workers will remain locked in their government pay-scale levels for the next two years. They will still be eligible to receive a pay increase if they are promoted to a higher GS level.

Presented by

Aamer Madhani and Rebecca Kaplan

Aamer Madhani is a White House correspondent for National Journal.

Rebecca Kaplan covers the White House as a staff reporter for National Journal.

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well. Bestselling author Mark Bittman teaches James Hamblin the recipe that everyone is Googling.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well.

Video

Before Tinder, a Tree

Looking for your soulmate? Write a letter to the "Bridegroom's Oak" in Germany.

Video

The Health Benefits of Going Outside

People spend too much time indoors. One solution: ecotherapy.

Video

Where High Tech Meets the 1950s

Why did Green Bank, West Virginia, ban wireless signals? For science.

Video

Yes, Quidditch Is Real

How J.K. Rowling's magical sport spread from Hogwarts to college campuses

Video

Would You Live in a Treehouse?

A treehouse can be an ideal office space, vacation rental, and way of reconnecting with your youth.

More in Politics

Just In