Trump Nixes Locality, Schedule Pay Hikes for Civilian Workers

August 30, 2018Greg Sullivan
(Bloomberg) — 
President Trump has “determined that for 2019, both across-the-board pay increases and locality pay increases will be set at zero,” according to letter from the president to Congress.

  • “In light of our nation’s fiscal situation, Federal employee pay must be performance-based, and aligned strategically toward recruiting, retaining, and rewarding high-performing Federal employees and those with critical skill sets,” Trump says in letter
    • “These alternative pay plan decisions will not materially affect our ability to attract and retain a well‑qualified Federal workforce,” Trump writes; says federal employee pay must be performance-based and aligned toward recruiting, retaining, rewarding “high-performing” workers and those with “critical skill sets”
    • Letter says adjustments take effect in first pay period on or after Jan. 1, 2019
  • NOTE: Trump called for a pay freeze for federal workers in his FY19 budget proposal but also for a $1b workforce fund that would be used to recruit and retain high performers in critical fields across the government
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