Freeze on Discretionary Awards, Bonuses, and Similar Payments for Federal Political Appointees

President Obama froze discretionary cash awards, bonuses, quality step increases, and similar payments for all politically appointed federal employees from August 3, 2010 through September 30, 2011 (end of Fiscal Year 2011). The Office of Personnel Management was directed to issue implementation guidance in consultation with OMB, while a broader salary freeze for senior political appointees was proposed as requiring congressional legislation.

Federal Register Open PDF 75 FR 47433

Impact dates

Date TBD
OPM guidance to assist departments and agencies in implementing freeze policy
Sep 30, 2011
freeze on discretionary payments for political appointees ends

Key directives

suspend cash awards, quality step increases, bonuses, and similar discretionary payments to politically appointed federal employees
OPM to issue guidance in consultation with OMB
freeze effective immediately through end of FY2011

Who is ordered

Timeline

Immediate

freeze on discretionary awards, bonuses, and similar payments takes effect

Near term (90d)

OPM to issue guidance in consultation with OMB

Long term

freeze continues through end of FY2011 (September 30, 2011)
proposed salary freeze for senior political appointees pending congressional action

Risks & tensions

scope limited to political appointees only; career civil servants explicitly excluded
freeze duration tied to fiscal year calendar rather than permanent policy change
proposed legislative salary freeze faces uncertain congressional path
discretionary nature of 'similar payments' may create implementation ambiguity