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President Obama Announces Pay Freeze for Federal Employees

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President Barack Obama has announced a two-year pay freeze for all civilian federal employees. He made the announcement from the White House on Monday.

The freeze would save the nation $2 billion in the remainder of the current fiscal year and $28 billion over the next five years, the president said. "All of us are called on to make some sacrifices, and I'm asking civil servants to do what they've always done -- play their part," Obama said. He also made it clear that the pay freeze would apply only to civilian government employees and not American servicemen and women.

Obama also outlined several other steps the nation has taken to reduce the nation's more than $1 trillion budget deficit, including pay freezes for senior staff. "The hard truth is that getting this deficit under control is going to require some broad sacrifice," the president said. "And that sacrifice must be shared by the employees of the federal government. After all, small businesses and families are tightening their belts. Their government should too."