Economy

Trump to Federal Employees: No Pay Raises for You!

Trump to Federal Employees: No Pay Raises for You!”

President Donald Trump informed Congress on Thursday that he is canceling pay raises due in January for most civilian federal employees, citing budget constraints.

"We must maintain efforts to put our Nation on a fiscally sustainable course, and Federal agency budgets can not sustain such increases", Trump wrote before announcing that for 2019, "both across-the-board pay increases and locality pay increases will be set at zero".

Tony Reardon, president of NTEU, added, "t$3 he call for a pay freeze for federal employees is especially painful given inflation and with economists predicting that private sector professional salaries will grow by an average of 3 percent this year". The House version of the bill did not include such an increase, and sought reductions to spending on federal pension plans. The president's tax and spending reforms are slated to add more than $1 trillion to the deficit over ten years, according to government figures.

Rep. Gerry Connolly, D-Va., who represents many federal workers, blamed what he said was Trump's mismanagement of federal government.

Federal workers rely on an old government formula to determine what their automatic pay raise will be each year.

Trump put the cost of the raises associated with high-cost areas at $25 billion.

Donald Trump has canceled a planned pay raise for federal workers, CNN reports.

Sen. Patrick Leahy (D-Vt.) pointed out the Senate passed this pay raise by a 96 to 2 margin, and noted the Senate "has a long history of supporting the federal work force by providing competitive pay, which attracts and retains talented women and men to" federal service. The national debt - the accumulation of those budget deficits - has increased almost $1.6 trillion over the past year, to $21.4 trillion.

The president also pointed to the need to make federal pay "performance-based, and aligned strategically toward recruiting, retaining, and rewarding high-performing Federal employees and those with critical skill sets". Trump signed executive orders in May that made it easier to fire federal employees and placed limits on public-sector unions.

A federal judge overturned numerous provisions last week, and the administration says it will comply with the order.

Trump's call for a federal pay freeze was included in his budget proposal for 2019, the Office of Management and Budget said.

Reaction on Thursday from Democrats was swift, particularly those from states adjacent to Washington, where large numbers of federal workers reside.

"Zero. This seems to be how much respect President Trump has for federal workers", he said in a statement.

The Trump administration proposed $143.5 billion in cuts to federal employee compensation in May, including substantial decreases in retirement funding. "Instead, the President ballooned the deficit by trillions of dollars with a tax giveaway primarily benefitting [sic] big business and the wealthiest Americans".

Why it does matter: This becomes the latest in a string of battles between Trump and federal employees.



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