Government Executive reports the legislation also calls for a 15 percent cut to the size of both federal employee and contractor workforces.
A 75 percent cut in the federal government’s travel budget is also included in the legislation.
“If the recent debate over the debt ceiling has shown anything, it’s that we need to make sure the federal government is forced to live within its means, just as small businesses and working families across the country are,” Hatch said in a statement.
The Bowles-Simpson fiscal commission recommended in December that federal pay be frozen across all agencies for two years, including in the Defense Department and the federal workforce be reduced by 10 percent. The reductions would be achieved by hiring two workers for every three who leave their jobs.
The Senate is currently in recess and is not scheduled to re-convene until after Labor Day.