President Donald Trump told Congress on Thursday that he is canceling a planned pay raise for many civilian federal workers that was supposed to go into effect in January, according to multiple reports.

In a letter addressed to the House and Senate, the president cited budgetary constraints as the reason behind his decision, Cox Media Group's Jamie Dupee reported.

“In light of our Nation’s fiscal situation, Federal employee pay must be performance-based, and aligned strategically toward recruiting, retaining, and rewarding high-performing Federal employees and those with critical skill sets,” the president wrote.

The president said locality pay increases, earmarked for federal workers who live in areas with a high cost of living, would cost $25 billion, The Associated Press reported. That figure did not include the 2.1 percent across-the-board increase most civilian federal workers expected to see next year.

“We must maintain efforts to put our Nation on a fiscally sustainable course,” Trump wrote. “I view the increases that would otherwise take effect as inappropriate.”

He said that for 2019 "both across-the-board pay increases and locality pay increases will be set at zero," The Associated Press reported.

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Demonstrators protest President Donald Trump and Elon Musk on Presidents Day in front of the Capitol in Atlanta on Monday, February 17, 2025, as part of nationwide demonstrations organized by the 50501 movement. (Arvin Temkar / AJC)

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