US President Barack Obama is freezing the salaries of senior White House officials and other top political appointees to save $4m (€2.8m) in the next financial year.
It is understood he will announce the move in his State of the Union address tonight, said an Obama official. It will expand on the pay freeze he ordered last year.
That freeze affected White House staff earning more than $100,000 (€72,000) a year.
It will be expanded to include political appointees working across the executive branch and in all agencies. The total number of people affected will be 1,200.
For the second year in a row, Obama will also eliminate bonuses for political staff across the executive branch, which will affect 3,000 people,.
"Across the country, families and companies are making tough choices and the president is asking political appointees to be part of a government that is more careful and responsible with taxpayers' dollars," the official said. "These are difficult times."
Obama, who is under public pressure to rein in the record US deficit and government spending, is also expected to announce a three-year freeze on spending on some domestic programs, saving $250bn (€177bn) by 2020, officials said.