I wondered when this would make news.

The fact is, the President is limited in what he can do. Now, there was a proposal for a 1.4% increase in pay for the various government grades. Because it hadn't yet passed, it was comparatively easy to eliminate that line from the funding proposal that was working it's way through Congress. The 'step increases' are another matter and would likely require legislation that would be a lot tougher to create and pass - especially with so little time before 1/1/11.

Full disclosure: I'm hit with the salary freeze and I'm not scheduled for a step increase for a few years. Also, I took a *cut* in pay to take this job which has comparable benefits as when I was employed in the private sector but *does* offer more time off. I have no problem with the freeze given the country's circumstances.