WASHINGTON (Reuters) – Congress is poised to nearly halve the salary cap for U.S. government contractors after years of dramatic increases driven by skyrocketing executive pay.
A broad budget bill that won approval by the House of Representatives on Thursday would lower the cap to $487,000 a person, down from its current level of $952,000. The Senate is expected to pass the bill next week.
The measure would be a partial victory for the White House, which for years has sought to rein in contractor reimbursements that fund salary and other personnel costs. In May, the White House proposed limiting the reimbursement level to $400,000 a person – the amount Barack Obama earns as president.
At least 616 employees at contracting companies earned more than that last year, according to the Government Accountability Office. Continue reading “U.S. Congress poised to limit contractor pay: Is $487,000 a year enough?”