Obama Extends Pay Freeze For Federal Workers

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Congress hasn't agreed on a budget for the next fiscal year. So President Obama is extending a two-year pay freeze for federal workers. That means no raises for federal employees at least until next spring. That's when a short-term budget deal runs out.

DAVID GREENE, HOST:

NPR's business news starts with frozen pay.

Congress has not agreed on a budget for the next fiscal year. So President Obama is extending a two-year pay freeze for federal workers. That means no raises for federal employees at least until next spring. That's when a short-term budget deal runs out.

STEVE INSKEEP, HOST:

The president sent a letter to House and Senate leaders, writing that the government needs to keep the country on a sustainable fiscal course. He also mentioned again, his support for a raise of one-half percent across the board for federal workers once a long-term budget is passed.

Now, union leaders for government employees say the pay freeze is unwarranted, although federal workers are still able to get raises based on performance or if they are promoted.

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