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Obama seeks to cut payments to federal contractors
Thursday - 5/30/2013, 6:08pm EDT
WASHINGTON (AP) -- The Obama administration says it can save hundreds of millions of dollars a year by cutting payments to some federal contractors, but it needs backing from a Congress that has ignored the president's prior calls to change the reimbursement formula.
White House budget officials said Thursday they will soon send lawmakers a proposal to tie the reimbursement cap to the president's salary.
Under the plan, the cap would increase any time the president gets a pay raise and by a corresponding amount.
The cap is currently set by law and adjusted annually. Officials say it has increased by more than 300 percent since it started at $250,000 in the mid-1990s.
The cap was $763,000 in fiscal year 2011. It is set to top $950,000 for the current fiscal year.
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