Congress, Federal Worker Pay | featured news

President Obama told congressional leaders Tuesday that he is extending a two-year pay freeze for federal employees until at least next spring because Congress has not agreed on a budget for the next fiscal year.

Federal pay rates would be frozen for the third straight year in 2013 under several plans that advanced in the House on Wednesday. A spending bill covering general government matters for the coming fiscal year approved by a House Appropriations subcommittee contains no additional money to pay for a raise, effectively rejecting President Obama’s request for a 0.5 percent increase in January.