Why is Defense Secretary Lloyd Austin's salary being reduced to $1? Annual earnings explored amid major development under GOP budget plan

U.S. Secretary of Defense Lloyd Austin's salary is being reduced to $1 after an amendment put forward by U.S. Representative Marjorie Taylor Greene was approved by the House on September 27, 2023. Marjorie also shared a post on X where she wrote:

"The horrific Afghanistan withdrawal. Our dwindling recruitment members. The firing of thousands of troops for refusing the Covid vaccine. Secretary of Defense Lloyd Austin has failed our military and failed America."

Marjorie concluded the post by writing that she is proud of her amendment, which has helped in his removal from the post.

The House Rules Committee stated that Marjorie used the Holman rules, where amendments can lead to a decrease in the salary of federal employees or remove them from their positions. The amendment stated:

"None of the funds made available by this Act may be used to pay Defense Secretary Lloyd James Austin III a salary that exceeds $1."

The Military Times reported that GOP lawmakers have approved various similar requests, leading to a salary cut for Defense Department positions.

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Lloyd Austin has earned a lot of wealth as a board member of different companies

According to Forbes, Lloyd Austin's net worth is estimated to be $7 million. He served as a U.S. Army general and reportedly earned a pension of $15,000 per month after his retirement in 2016.

He joined RTX Corporation as a board member and was employed by various companies like Guest Services Inc. and United Technologies Corporation. During his time at RTX Corporation, Austin's salary was around $643,000.

Lloyd also joined the board of the nonprofit organization Carnegie Corporation in 2017. Forbes states that his compensation was $39,000 at the time. He earns $328,000 as a Tenet Healthcare Corporation board member.

He was also a board member of Booz Allen Hamilton, and his salary was reported to be $200,000 at the time. He then joined the advisory committee of Fidelity Investments in 2020, earning a salary of $40,000. His salary increased to $221,000 as Defense Secretary in 2021.

Lloyd paid $2.6 million for a house he bought in Washington, D.C. The New York Times revealed in December 2020 that Lloyd was the owner of Raytheon stock holdings worth $500,000.

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Lloyd Austin receives support from fellow politicians

While Lloyd Austin's salary cut has been trending in the headlines, he has received support from a few politicians. Stars and Stripes revealed that U.S. Representative Betty McCollum praised Austin's work by saying that he offered help during the Ukraine and Russia conflict.

Betty said that there was no immediate requirement to slash Austin's salary and said:

"You may disagree with the administration's policies, as we all have done over our careers with different administrations. But Secretary Austin has done nothing to merit this amendment."

The Washington Times revealed that Marjorie Taylor Greene's amendment was approved through a voice vote, and there was no roll-call vote since it could have led to the cancellation of the request for a salary reduction.