President Bush signed an executive order Friday that directs federal contractors to offer new contracts that pay a higher wage to workers making less than $50,000 a year.
The order directs the Office of Personnel Management to develop a plan to help workers make more than $250,000 and a $1 million salary by 2020.
The measure comes as the economy is on the brink of a recession that has led to a massive reduction in government contracts, with the government contracting office slashing more than half its workforce over the past decade.
The White House has said that the order will help the country recover from the economic crisis that has devastated many parts of the economy.
The new order also gives Bush a boost in his re-election campaign.
It includes an $8.2 billion stimulus package that will give money to small businesses.
Bush said in a statement Friday that he’s making the move “to help American workers get ahead and stay ahead.”
The order also directs the Treasury Department to expand its efforts to help the unemployed and those who have been laid off by the federal government.
It also calls on the Labor Department to help businesses recruit workers for retraining programs.