6. APPROPRIATIONS:

Senate panel sides with House counterpart and sets no raise for federal workers

Published:

The House and the Senate seem to be in agreement: no raises next year for federal employees, at least not with Congress' overt blessing.

The Senate Appropriations Committee approved the financial services and general government spending bill yesterday without any funds specifically set aside for a federal employee pay raise. The House's spending bill -- which passed the Appropriations financial services subcommittee last week -- also doesn't include any raise.

President Obama proposed a 0.5 percent raise in fiscal 2013, after a two-year federal pay freeze that began in 2010. Such raises are usually funded through the financial services bill; without a line item or report language, it's unclear how Obama would fund a raise.

Democrats have argued that Obama's proposed raise is minimal and far less than the usual annual cost-of-living adjustment. But Republicans have waged a constant campaign to cut government pay and benefits, which they say are too generous in the current economic environment.

It appears a small pay raise wasn't worth the fight, at least not yet.

At yesterday's markup, no Democrats offered an amendment to fund the raise. But the issue could come up again, either on the floor, in a stand-alone bill or in an eventual omnibus.