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President extends federal pay freeze

President extends federal pay freeze

Posted: Wednesday, August 22, 2012 8:00 pm

WASHINGTON (AP) — President Obama told congressional leaders Tuesday that he is extending a two-year pay freeze for federal employees until at least next spring.
The freeze will stay in effect during a short-term deal to fund the government through April. The presidential campaign made it difficult to reach a more long-range agreement before the start of fiscal 2013 on Oct. 1.
Obama, in a letter to the congressional leadership, said that government “must maintain efforts to keep our nation on a sustainable fiscal course.” The administration estimates the two-year pay freeze will save more than $60 billion.
Obama has proposed an across-the-board 0.5 percent pay raise, but said the increase should not take effect until Congress passes a budget. The proposal would effectively delay the pay increase for three months. Congress would have to enact the pay-raise proposal. Congress reached a short-term deal before its August recess to fund the government for six months. 
Published in The Messenger 8.22.12

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