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Obama Proposes Two-Year Freeze on Federal Salaries

President Barack Obama on Monday proposed a two-year freeze in pay for civilian federal employees, which the White House says will save $60 billion over 10 years.

The pay freeze would cover 2011 and 2012, and it includes civilian but not military employees at the Department of Defense. It would save $2 billion in fiscal 2011 and $28 billion in the first five years.

“We need to turn our attention to addressing the massive deficits we inherited and the unsustainable fiscal course that we are on,” the White House said in a fact sheet released Monday morning. “This was a decision that was not made lightly. From the doctors and nurses who care for our veterans to the scientists searching for better treatments and cures, the men and women who care for our national parks, and the thousands who make sure that the Social Security check is in the mail and that students get their scholarships, federal workers serve their fellow Americans.”

The White House said more austerity is on the way.

“It is the first of many actions we will take in the upcoming budget to put our nation on sound fiscal footing — which will ask for some sacrifice from us all,” the White House said.

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