Nov 29, 2010

President Obama will announce a two-year freeze in the wages of federal employees Monday, with the intention of saving $60 billion over the next 10 years.
Obama was scheduled to announce the proposal later Monday.

According to an administration statement, the two-year pay freeze will save $2 billion for the remainder of fiscal year 2011, $28 billion over the next five years, and more than $60 billion over the next decade.

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

"This freeze is not to punish federal workers or to disrespect the work that they do," the White House said in a statement. "It is the first of many actions we will take in the upcoming budget to put our nation on sound fiscal footing -- which will ask for some sacrifice from us all."

Republicans have argued in favor of a freeze in recent weeks, and the co-chairmen of Obama's bipartisan deficit commission made a similar recommendation earlier this month.


  1. It seems that gov't workers are just the whipping boys/girls of the deficit hawks?

    And Peterike -- our regulatory agencies are all ready cut to the bone-- but maybe your game is population control through the deaths that come from unregulated food, toys, factories, drugs and the like.

  2. State and county employees have been under a pay freeze for three years. We have hiring freezes and we can barely get copier paper. I've personally been furloughed at least a day a month for the last 15 months. In May and June we had to endure 2 days. The feds have been hiring and giving bonus through all of this because I have friends who are federal employees. I don't begruge anyone a pay increase, really I don't, but I think it's appropriate.

    As for where else we could cut spending to avoid this, I can't say, my agency won't look at other cuts. Government always goes for staff first. IT's the govment way.