Groups Urge Congress to Lower Cap on Contractor Pay

November 13, 2012

Federal employee unions and other groups on Tuesday called on lawmakers to lower the current compensation cap on non-Defense Department contractors to $400,000.

The letter to the leadership of the House and Senate Financial Services committees urged lawmakers to change the maximum allowable limit on reimbursable contractor pay from $763,029 to $400,000. The Senate’s fiscal 2013 financial services appropriations bill contains a provision lowering the cap to the president’s current annual salary, which is $400,000.

“Due to concerns about both fiscal responsibility and fairness, we believe it is important to reduce the compensation priced and/or reimbursed under U.S. government prime and subcontracts to federal contractor employees,” the letter stated. The coalition that sent the letter included officials from the American Federation of Government Employees, National Treasury Employees Union, Economic Policy Institute, Project on Government Oversight and OMB Watch.

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