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Obama Orders Federal Pay Freeze

Posted on December 14, 2010

WASHINGTON, DC -- President Barack Obama has proposed a pay freeze in civilian pay for federal employees for the next two years, 2011 and 2012.

This 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 10 years. It 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.

Federal workers had been expecting a 1.4% cost-of-living increase for 2011 but this will not happen due to the freeze.

"This was a decision that was not made lightly," said the White House in a press statement. "From the doctors and nurses who care for our veterans to the scientists searching for better treatments and cures, the men and women who care for our national parks, and the thousands who make sure that the Social Security check is in the mail and that students get their scholarships, federal workers serve their fellow Americans. They do so often with great sacrifice and motivated by a patriotic love for their country. This freeze is not to punish federal workers or to disrespect the work that they do. 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."

This move also is another step in what the Administration has done as part of its Accountable Government Initiative to cut costs, save taxpayer dollars and do more with less in the federal government:

- Upon taking office, the President froze salaries for all senior White House officials; in last year's budget, he proposed to extend this freeze to other top political appointees; and he eliminated bonuses for all political appointees.

- The President directed agencies to dispose of excess real estate to save $8 billion over the next two years.

- The President set an aggressive goal of reducing improper payments by $50 billion by the end of 2012.

- In each of his budgets, the President put forward approximately $20 billion in terminations and reductions, encompassing more than 120 programs all of which have strong supporters.

- The President put forward more than $1 trillion in deficit reduction in his 2011 budget, including a three-year freeze in non-security spending.