Obama orders freeze on appointee bonuses

President Obama on Tuesday issued an order suspending bonuses and cash awards for political appointees through the end of fiscal 2011.

"At a time when so many American families are struggling to make ends meet, I am committed to making sure the federal government is spending the taxpayers' money wisely and carefully, and cutting costs wherever possible," Obama wrote in a memo to the heads of departments and agencies.

Obama's order covers "cash awards, quality step increases, bonuses and similar discretionary payments or salary adjustments" to appointees. It does not cover career federal employees.

The president also noted that he proposed a freeze on political appointee salaries next year in his fiscal 2011 budget proposal. That move, unlike the freeze on bonuses, would require congressional approval.

The Senate Appropriations Committee recently backed a 1.4 percent average pay increase for federal employees next year. But the move came amidst repeated efforts to freeze pay for career civil servants next year.

"I appreciate the hard work of our federal workforce, and understand how important these payments can be to many workers and their families," Obama wrote in his memo Tuesday. "Yet like households and businesses across the country, we need to make tough choices about how to spend our funds."