Obama: 2010 Pay Raise 2 Percent

President Obama on Monday reiterated that he will limit the across-the board pay increase for federal employees to 2 percent in 2010.

Obama originally issued the 2 percent recommendation in August. Under federal law, the president has until the end of November to propose an alternative to pay levels set under procedures laid out in the 1990 Federal Employees Pay Comparability Act. Under that law, employees would be due a 2.4 percent base pay raise in 2010, plus locality pay increases averaging 16.5 percent. That total pay increase would cost about $22.6 billion in fiscal 2010 alone, Obama wrote.

The president has cited a national emergency since Sept. 11, 2001, as well as the sluggish economy and high unemployment as his basis for overriding FEPCA and proposing the lower-than-average 2 percent figure.

"As I said in August, I do not believe this decision will materially affect our ability to continue to attract and retain a quality federal workforce," Obama wrote in a letter to House Speaker Nancy Pelosi and Vice President Joe Biden. "Since any pay raise above the amount proposed in this alternative plan would likely be unfunded, agencies would have to absorb the additional cost and could have to reduce hiring to pay the higher rates."

The 2 percent figure has angered some lawmakers and federal employee groups, many of which have pushed for pay parity between civilian workers and military service members. Members of the military are slated to receive a 3.4 percent raise. Congress could still override the president's plan, however. The Senate's version of the fiscal 2010 financial services appropriations bill includes a 2.9 percent civilian raise for 2010, while the House bill follows Obama's request for a 2 percent raise. The House passed its version of the financial services bill in July, but the full Senate has yet to vote on the measure.