Federal Pay Freeze

Monday, November 29, 2010 - 4:36pm

President Obama caps federal pay in response to ballooning deficit.

President Obama has proposed a two year pay freeze for millions of federal workers.

The president was under pressure by his deficit commission to make the move.

U.S. military forces are exempt, but pay would be frozen for bureaucrats in Washington D.C.,
federal prosecutors, doctors at the National Institutes of Health and the Centers for Disease Control among others.

President Obama says the plan will save $2 billion next year and $5 billion the year after.

The 2.7 million workers to be affected found out Monday.

House Republicans are supportive of the Obama plan.

"This is exactly the kind of savings measure we have to make in order to begin to restore some fiscal sanity in America, said GOP Whip Eric Cantor.

"Necessary," said Republican Darrell Issa, "and quite frankly, long overdue."

Congress must now approve the pay freeze.

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