President Trump on Thursday scrapped the 2.1% increase for Federal government employees set for January – stating in a letter addressed to Speaker of the House Paul Ryan, “I have determined that for 2019, both across the board pay increases and locality pay increases will be set at zero.”
He also stated that this would “put our Nation on a fiscally sustainable course.”
The raise freeze, which must also be approved by Congress, would save more than $25 billion.
It doesn’t’ apply to troops, who will receive a 2.6% raise next year.
This move comes as Trump tries to make good on a promise that he would reduce the federal deficit and balance the nation’s budget.
Congress could still authorize a raise despite Trump’s letter. Lawmakers have yet to reach an agreement, and have until the end of the year to do so.