Trump cancels pay raise federal workers were due in January
Sep 03 2018
President Donald Trump may have called for a pay raise freeze for civilian federal workers, but that does not necessarily mean it will happen.
At the same time, Trump planned during a Friday appearance in Charlotte, North Carolina, to direct the Labor and Treasury departments to issue regulations created to make it easier for small businesses to pool resources so they can offer retirement savings plans to their workers, administration officials told reporters. It is worth noting that the Senate spending plan did receive some opposition from the White House, as Trump has recommended freezing federal salary despite increasing pay by 1.4 percent previous year, according to Washington's Top News.
Those increases would come on top of a 2.1 percent across-the-board increase for most civilian employees.
Trump is not anxious about the effect of freezing federal pay on the government's ability to be successful in "recruiting, retaining and rewarding high-performing Federal employees and those with critical skill sets".
That measure, along with a new two-year federal budget and tax cuts heralded by Republicans, have led to accusations Trump is ignoring the federal deficit, despite promising he would address it as president.
"We must maintain efforts to put our nation on a fiscally sustainable course, and federal agency budgets can not sustain such increases", Trump said in the letter.
"Zero. This seems to be how much respect President Trump has for federal workers", he said in a statement.
The move drew a quick response from D.C. -area members and is nearly certain to draw howls from the Senate, which included a 1.9 percent pay raise in its Financial Services spending bill.
Federal workers rely on an old government formula to determine what their automatic pay raise will be each year. The tax plan alone is expected to increase the deficit by $1.4 trillion over 10 years, according to a government estimate.
The American Federation of Government Employees, a union for federal workers, is now calling on the House to pass a similar measure.
While Trump has yet to propose reducing spending on big-ticket items such as defense or entitlements, he is trying to trim the decicit by changing how federal employees are paid.
The president says that federal employee pay should be based on performance and should not involve fixed pay increases.
Instead of giving across-the-board increases, which he says don't address pay disparities or accomplish mission or retention goals, he wants to move to a merit-based system that rewards employees for their performance.
In the letter, Trump said the pay freeze "will not materially affect our ability to attract and retain a well-qualified federal workforce".
As noted in my Budget for Fiscal Year 2019, the cost of employing the Federal workforce is significant.
The adjustments described above shall take effect on the first day of the first applicable pay period beginning on or after January 1, 2019.