WASHINGTON, D.C. -- United States Senator Daniel K. Inouye announced today that the Senate Committee on Appropriations extended the Cost-of-Living Allowance (COLA) rates for Alaska, Hawaii, and the U.S. territories to the Year 2000. The COLA rates help an estimated 17,000 federal employees in the State of Hawaii. The provision is included in the Fiscal Year 1998 Appropriations Bill for the Department of Treasury, Postal Service, and General Government Appropriations Bill.

As a result of controversies and litigation surrounding the COLA program for federal employees in Alaska, Hawaii and U.S. territories outside the 48 contiguous States, the 1992 Treasury, Postal Service and General Government Appropriations Act directed the Office of Personnel Management (OPM) to conduct a study of the new methodology used to set COLAs, and while the study was underway, it barred any reduction of existing COLA rates.

In 1996, the Treasury, Postal Service and General Government Appropriations Act extended the deadlines both for the study and the expiration of the bar on COLA reductions to 1998. Because the study required more research and data, the Fiscal Year 1998 Appropriations Bill extends the deadlines to March 1, 2000.

The provision will now go to the full Senate for consideration. It will face a joint House-Senate Conference and final Senate vote before its transmittal to the White House.