Obama to Freeze Feds' Pay

Aims to cut deficit with 2-year move
By Newser Editors and Wire Services
Posted Nov 29, 2010 10:38 AM CST
President Barack Obama speaks about the recovery of the U.S. auto industry, Tuesday, Nov. 23, 2010, at Chrysler's Indiana Transmission Plant II in Kokomo, Ind.   (AP Photo/J. Scott Applewhite)

(Newser) – President Obama is set to announce a 2-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 today 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. The chairman of Obama's bipartisan deficit commission has proposed a 3-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.

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