(Washington, D.C.) – The Council for Citizens Against Government Waste (CCAGW) today chided the House of Representatives for passing the fiscal 2005 Transportation/Treasury Appropriations Act, H.R. 5025, that includes rule permitting a pay raise for members of Congress and would prevent regulations allowing thousands of federal jobs to be transferred to the private sector from taking effect.

“It is ironic, but not surprising, that members of Congress are rewarding themselves with a pay increase in the same piece of legislation in which they are placing a greater burden on taxpayers,” CCAGW President Tom Schatz said.  “Congress has once again failed to pass the appropriations bills on time, set a record budget deficit, and approved the largest entitlement expansion in history through the Medicare bill.  Such failure would not be tolerated in the private sector.  However, one of the many perks of being a member of Congress is that it is the only job in which you can apparently get away with giving yourself a pay raise during a time of increasing red ink.”

In 1989, Congress made the annual cost of living allowance (COLA) automatic unless it was specifically voted down.  This year’s COLA was 2.5 percent, which amounts to an increase of nearly $4,000 from a member’s current salary of $158,000.  It marks the sixth straight year members of Congress have accepted their pay raise.  Last week, Rep. Jim Matheson (D-Utah) did make a procedural attempt to prevent the COLA but was turned down by a vote of 235-170.

“Members of Congress must think that money grows on trees,” Schatz continued.  “With a $422 billion deficit clearly they are not doing their job.  While they may have the power to give themselves a raise, Americans are in position to fire them come this November.”

H.R. 5025 also contained an amendment sponsored by Rep. Chris Van Hollen (D-Md.) that would prohibit the Office of Management and Budget from enforcing regulations approved in 2003 allowing the private sector to compete with federal employees for some of the jobs currently done by federal employees.  The amendment passed 210-187.  Before the bill is sent to the President, it must first be approved by the Senate and any differences reconciled in a conference committee.

“Any time competition is increased it improves efficiency and quality, while lowering costs.  Taxpayers can only benefit from having the government open more of its jobs to competition,” Schatz concluded.  “Hopefully, the Senate will not include either the pay raise or the anti-competitive language in its version of the bill.”   

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.