Obama signs bill granting 2 percent pay raise to feds

Moratorium extended on new public-private competitions for federal work

President Obama signed a $1.1 trillion omnibus funding package for fiscal 2010 in late December 2009 that includes a 2 percent raise for civilian federal employees and extends a moratorium on new public-private competitions for federal work.

Congress stuck with Obama’s recommendation for a 2 percent raise for civilian employees, but not with his plan to freeze locality pay at 2009 rates. Lawmakers instead allocated 1.5 percent of the raise toward base pay, and 0.5 percent toward locality pay.

The bill (H.R. 3288) also bans funding for government use of private tax collectors and requires non-DoD agencies to compile a list of contracts performed by private contractors.

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