Federal Pay Freeze Planned
(Wall Street Journal) — President Barack Obama on Monday proposed a two-year salary freeze for all federal civilian employees, signaling an apparent willingness to reach toward Republicans ahead of negotiations on deficit-cutting that are likely to dominate Washington next year. The freeze, which would require congressional approval, would affect about two million workers in 2011 and 2012 and save just $5 billion, a tiny fraction of the current $1.3 trillion annual budget deficit. The GOP has called for much bigger reductions in federal spending and has specifically targeted the federal work force.
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