Crawford, Tex. ? Citing a state of national emergency brought on by last year’s terrorist attacks, President Bush on Friday slashed the pay raises most civilian federal workers were to receive starting in January.

Under a law passed in 1990, federal employees covered by the government’s general schedule pay system would receive a two-part pay increase with the new year: a 3.1 percent across-the-board increase plus a pay hike based on private-sector wage changes in the areas where they work.

This law outlining federal pay kicks in because Congress has not passed the appropriations legislation directing a specific increase, said Amy Call, a spokeswoman for the White House’s Office of Management and Budget.

In a letter sent Friday to congressional leaders, Bush announced he was using his authority to change workers’ pay structure in times of national emergency or “serious economic conditions” and limiting raises to the 3.1 percent across-the-board boost. Military personnel will receive a 4.1 percent increase.

That means that the additional so-called locality-based payments would remain at current levels because “our national situation precludes granting larger pay increases : at this time,” Bush said.

The White House couldn’t say exactly how many federal employees the change would affect but said it would be almost all.

Bush’s pay decision is yet another blow to federal workers, many of whom are facing big changes in job descriptions under the Bush administration.

Earlier this month, the administration announced it wants to let private companies compete for up to half of the 1.8 million federal jobs.

Also, in the new Homeland Security Department, Bush won the broad powers he sought to hire, fire and move workers in the 22 agencies that will be merged.