Bonuses for Cost-Cutters and Fraud Preventers Act of 2026

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 428 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 428

 To amend title 5, United States Code, to enhance the authority under
which Federal agencies may pay cash awards to employees for making cost
              saving disclosures, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 15, 2025

 Mr. Fleischmann introduced the following bill; which was referred to
            the Committee on Oversight and Government Reform

_______________________________________________________________________

                                 A BILL

 To amend title 5, United States Code, to enhance the authority under
which Federal agencies may pay cash awards to employees for making cost
              saving disclosures, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bonuses for Cost-Cutters Act of
2025''.

SEC. 2. COST SAVINGS ENHANCEMENTS.

    (a) Definitions.--Section 4511 of title 5, United States Code, is
amended--
            (1) in the section heading, by striking ``Definition'' and
        inserting ``Definitions''; and
            (2) in subsection (a)--
                    (A) by striking the period at the end and inserting
                ``; and'';
                    (B) by striking ``this subchapter, the term'' and
                inserting the following: ``this subchapter--
            ``(1) the term''; and
                    (C) by adding at the end the following:
            ``(2) the term `wasteful expenses' means amounts made
        available for salaries and expenses accounts, operations and
        maintenance accounts, or other equivalent accounts--
                    ``(A) that are identified by an employee of the
                agency under section 4512(a) as wasteful; and
                    ``(B) that the Chief Financial Officer of the
                agency determines are not required for the purpose for
                which the amounts were made available.''.
    (b) Authority.--Section 4512 of title 5, United States Code, is
amended--
            (1) in subsection (a)--
                    (A) by inserting ``The head of an agency may pay a
                cash award to any employee of such agency whose
                identification of wasteful expenses to the Chief
                Financial Officer of the agency has resulted in cost
                savings for the agency.'' after the first sentence;
                    (B) in paragraph (1) by striking ``$10,000'' and
                inserting ``$20,000'';
                    (C) in paragraph (2)--
                            (i) by inserting ``Chief Financial
                        Officer,'' after ``Inspector General,'';
                            (ii) by striking ``employee designated
                        under subsection (b)'' and inserting
                        ``designated employee''; and
                            (iii) by inserting ``or identification''
                        after ``disclosure''; and
                    (D) in the matter following paragraph (2)--
                            (i) by inserting ``, Chief Financial
                        Officer,'' after ``Inspector General''; and
                            (ii) by inserting ``or identification''
                        after ``disclosure'';
            (2) in subsection (b) by striking ``awards permitted under
        this section'' and inserting ``awards for the disclosure of
        fraud, waste, or mismanagement under this section''; and
            (3) by adding at the end the following:
    ``(c)(1) If the Chief Financial Officer of the agency determines
that potential wasteful expenses identified by an employee meet the
requirements of section 4511(a)(2)(B), the head of the agency shall
notify the President for purposes of proposing the expenses for
rescission under title X of the Congressional Budget and Impoundment
Control Act of 1974 (2 U.S.C. 681 et seq.).
    ``(2) In the case of an agency for which there is no Chief
Financial Officer, the head of the agency shall designate an agency
employee who shall have the authority to make the determinations for
identification of wasteful expenses under this section.
    ``(d) The head of each agency shall make available, along with, and
in the same manner and form as, the provision of information required
under section 1116 of title 31, information on disclosures of wasteful
expenses under this section, including--
            ``(1) a description of each disclosure of possible wasteful
        expenses identified by an employee and determined by the agency
        to have merit; and
            ``(2) the number and amount of cash awards provided by the
        agency under subsection (a).
    ``(e) An individual may not receive a cash award under this
subchapter if the individual is--
            ``(1) an officer or employee of the Office of the Inspector
        General of an agency; or
            ``(2) ineligible for a cash award under section 4509.
    ``(f) The Director of the Office of Personnel Management shall--
            ``(1) ensure that the cash award program of each agency
        complies with this section; and
            ``(2) submit to Congress an annual certification indicating
        whether the cash award program of each agency complies with
        this section.
    ``(g) Not later than 3 years after the date of enactment of the
Bonuses for Cost-Cutters Act of 2025, and every 3 years thereafter for
6 years, the Comptroller General of the United States shall submit to
Congress a report on the operation of the cost savings and awards
program under this section, including any recommendations for
legislative changes.''.
    (c) Technical and Conforming Amendment.--The table of sections for
subchapter II of chapter 45 of title 5, United States Code, is amended
by striking the item relating to section 4511 and inserting the
following:

``4511. Definitions and general provisions.''.
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