President Obama agreed to return 5 percent of his salary, roughly $20,000, in solidarity with nearly 500 employees of the Office of Management and Budget who were given furlough notices cutting salaries collectively by roughly $7 million Monday. The salary reductions are part of the much broader sequestration cuts totaling $1.2 trillion over the next 10 years, aimed at reducing the national deficit of more than $16 trillion.
Most acknowledge the president’s act was merely symbolic, having only a miniscule impact on the federal budget. President Obama receives an annual salary of $400,000 and will have to voluntarily give back money to the Treasury since his salary is set by law.
“The President has decided that to share in the sacrifice being made by public servants across the federal government that are affected by the sequester, he will contribute a portion of his salary back to the Treasury,” White House spokesman Jay Carney said in a statement. “He instructed his staff he wanted to do this when the sequester took effect.”
The President was criticized recently for extravagant spending, including the $100,000 cost of security for his daughters to go on spring break during the Sequester. In a far less publicized event, Senator Lindsey Graham (R-S.C.) authored an amendment last month establishing a fund to which members Congress could choose to donate 20 percent of their pay.
On Tuesday, Defense Secretary Chuck Hagel announced he would also give up the portion of his salary that would have been cut if he had been subject to the same work furlough as thousands of department personnel under the mandatory federal budget cuts.
Hagel, who earns $199,700 annually, will write a check to the Treasury for up to 14 days of salary in a similar act of solidarity with federal workers.
Many critics are calling for the Obama administration to do more than merely returning token sums to the U.S. Treasury, since the furloughs are already affecting thousands of employees who have received pay cuts or pink slips.
This has already translated into a broad loss of services including federal courts closing on Fridays. Many public broadcasting transmitters have been shut down and Head Start programs have closed or reduced enrollment.
“Why is it so hard to make sure that Head Start functions, that kids have access to decent medical care? Why are these things so controversial and difficult to get through? Why does Congress literally have to hold itself hostage in order to maintain these services?” said Zach Carter, a senior political economy reporter for the Huffington Post.
Many of the cuts to critical social programs and public sector employees could have been avoided if Congress reached a deal to avoid the automatic sequestration cuts. President Obama failed to broker a bipartisan agreement during a meeting with key Republican leaders in early February.