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  • U.S. President Donald Trump said on Feb. 11 that the country is going through the best economy in its history.

    U.S. President Donald Trump said on Feb. 11 that the country is going through the best economy in its history. | Photo: Reuters

Published 12 February 2020

The adjustment to the scheduled pay raise will take effect in January 2021 unless Congress passes a spending bill that includes a federal pay raise.

United States President Donald Trump slashed Monday a scheduled pay raise for millions of federal workers from 2.5 to one percent citing a "national emergency or serious economic conditions," despite on Feb. 11 tweeting that the country has the best economy in history.

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Trump Proposes Cuts in Social Safety Net, Foreign Aid For 2021 Budget

"I have determined that for 2021 the across-the-board base pay increase will be limited to one percent," Trump said in a message to Congress on Monday. "This alternative pay plan decision will not materially affect our ability to attract and retain a well‑qualified federal workforce."

The adjustment to the scheduled pay raise will take effect in January 2021 unless Congress passes a spending bill that includes a federal pay raise.

The announcement raised concerns from public servants and critics from those who saw the move and the reiterated claims of a booming U.S. economy, as contradictory claims. 

"Trump claimed we had the 'Best USA Economy in History' and cited 'serious economic conditions affecting the general welfare' to justify limiting pay increases for federal workers," Democratic Congressman Steve Cohen tweeted.

This comes as the U.S. president proposed major spending cuts for the 2021 fiscal budget, which begins on Oct. 21.; cutting billions of dollars in U.S. social safety net and foreign aid.

According to an administration official, Trump will seek to make a 21 percent cut in foreign aid in the proposal, reducing the budget to US$44.1 billion in the upcoming fiscal year compared with $55.7 billion enacted in the fiscal year 2020.

The White House proposes to slash spending by US$4.4 trillion over 10 years. That includes US$130 billion from changes to Medicare prescription-drug pricing, US$292 billion from cuts in safety-net programs - such as work requirements for Medicaid and food stamps - and US$70 billion from tightening eligibility rules for federal disability benefits.

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