Citing Deficit, Obama Freezing Federal Worker Pay - Spokane, North Idaho News & Weather KHQ.com

Federal Pay Freeze

Citing Deficit, Obama Freezing Federal Worker Pay

WASHINGTON (AP) - President Barack Obama has announced a two-year pay freeze for federal employees, saying the step is necessary to help bring the federal deficit under control.

The freeze would apply to all civilian federal employees but would exclude military personnel.

Obama says the sacrifices of limiting government spending must be shared by government workers.

The White House says the freeze would save $5 billion over two years. By delaying wage increases, the freeze would save $28 billion over the next five years, the White House says.

The chairmen of Obama's bipartisan deficit commission 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.
      
      (Copyright 2010 by The Associated Press.  All Rights Reserved.)
   

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