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National Briefing

Washington, D.c.

Federal workers' raises drop to 2%

September 01, 2009|Times Wire Reports

President Obama notified Congress that he would reduce pay increases for federal workers from 2.4% to 2%. Using powers employed by his two most recent predecessors, the president cited the national unemployment rate and the expensive federal payroll.

In a letter to House Speaker Nancy Pelosi (D-San Francisco) and Vice President Joe Biden, who serves as president of the Senate, Obama said he was acting because the 2.4% increase mandated by statute would cost $22.6 billion in 2010. He said he had budgeted for a 2% across-the-board increase at a cost of $19.9 billion.

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