Federal Workers Face ‘Unprecedented Assault’ in U.S. Budget War

Congress is considering ways to cut U.S. federal workers’ pay, benefits and possibly their jobs even as a record number are borrowing against pensions.

Concern over the situation almost derailed a deal to extend the payroll tax cut this week as several lawmakers objected to a provision that would have required federal workers to contribute more to their pensions. In the end, negotiators agreed to target newly hired federal workers.