Obama, Hagel Taking Pay Cuts

The President and the Defense Secretary will each issue checks to the Treasury Department as a sign of solidarity with federal employees struggling with sequestration.

HagelDefense Secretary Chuck Hagel and Deputy Defense Secretary Ashton Carter will voluntarily take a 14 day pay reduction in response to the $40 billion in spending cuts facing the Department of Defense.

Pentagon spokesman George Little told reporters that Hagel will issue a check back to the Treasury as a sign of solidarity with other DoD employees subjected to a 14 day paycut.

“My understanding is that there is a legal way to actually write a check, if you will, back to the U.S. Treasury,” Little told reporters.

Hagel’s yearly salary of $199,700 will be shortened by $10,750.

The DoD will be cutting nearly 800,000 civilian employees’ pay, a decision by the Pentagon following the implementation of sequestration.

UPDATE: The New York Times reports that President Obama will return five percent of his annual salary to the Treasury Department.

The voluntary move would be retroactive to March 1 and apply through the rest of the calendar year, the official said. The White House came up with the 5 percent figure to approximate the level of automatic spending cuts to non-defense federal agencies that took effect that day.

– End Update –

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News updates from on and around Capitol Hill.

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