THE OVAL ON TWITTER THE OVAL ON TWITTER WASHINGTON (AP)  President Obama notified Congress on Monday he is reducing pay increases for federal workers from 2.4% to 2%. Using powers employed by his two most recent predecessors, the president cited the national unemployment rate and the budget busting federal payroll. Obama also said that he would decide by Nov. 30 on the need to take action on "locality pay," wages over and above the base federal rates that are determined according to geographic living costs and comparable private-sector pay. The locality pay set to take effect on Jan. 1, 2010, would have added an average of 16.5% to the wages of federal workers, meaning that the pay increase as outlined by statute would have totaled 18.9% throughout the federal system. In a letter to House Speaker Nancy Pelosi and Vice President Joe Biden, who serves as president of the Senate, Obama said he was taking action because the 2.4% increase mandated by statute would cost $22.6 billion in 2010. He said he had budgeted only for a 2% across-the-board increase at a cost of $19.9 billion. Obama said he was invoking powers to put in place his own pay plan in times of a national emergency or serious economic conditions affecting the nation. Former President George W. Bush used the authority previously, as did President Bill Clinton before him. "With unemployment at 9.5% in June to cite just one economic indicator, few would disagree that our country is facing serious economic conditions affecting the general welfare," Obama's letter said. Obama said he did not believe his order would affect the government's ability to attract or keep employees. "To the contrary," his letter said, "since any pay raise above the amount proposed in this alternative plan would likely be unfunded, agencies would have to absorb the additional cost and could have to reduce hiring to pay the higher rates." Bush used similar language and arguments when he intervened in federal salaries in November 2007. Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Guidelines: You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. Use the "Report Abuse" button to make a difference. Read more