Story this AM from Yahoo! Here comes a small dose of austerity for the US now.
Last fiscal year, total 'Federal Salaries' were $176B, so a small +2% pay adjustment here would have resulted in about a $3.5B additional transfer to the non-govt sector. It looks like this will now not happen.
Even though 'every little bit of fiscal helps', this small foregone fiscal adjustment may not warrant any growth forecasts for next year to be adjusted downward significantly.