President Trump on Thursday announced that he would cancel a scheduled 2.1 percent across-the-board pay increase for federal workers, as well as locality pay increases.

“In light of our Nation’s fiscal situation, Federal employee pay must be performance-based, and aligned strategically toward recruiting, retaining, and rewarding high-performing Federal employees and those with critical skill sets,” Trump wrote in a letter to the Speaker of the House and the President of the Senate.

The proposal would affect most of the 2.1 million federal employees around the nation, about 1.7 million of which live in areas outside of the Washington, D.C. metro area.

Members of the military, on the other hand, are on schedule to receive a 2.6 percent pay increase.