Statement on Senate Action Disapproving Deferral of a Federal Pay Increase.

WHILE disappointed in today's Senate vote, I am in agreement with the Congress that Federal employees deserve this pay increase. It was painful for me to ask the Congress to defer this raise for 3 months. I know I had asked the Congress to do a difficult thing. But there was a compelling reason. I refer to the inflationary momentum which I regard as domestic public enemy number one. That is why I had requested the Congress and the Federal employees to cooperate.

Now that the Congress has acted, I will proceed to reach a decision as quickly as possible, within the prescribed discretionary limits, on the precise amount of the raise.

The need to reduce Federal spending continues. I sincerely hope that the Congress will join with me in this effort.