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Bonuses for Cost-Cutters Act of 2025

USA119th CongressS-2732| Senate 
| Updated: 9/8/2025
Rand Paul

Rand Paul

Republican Senator

Kentucky

Homeland Security and Governmental Affairs Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
The "Bonuses for Cost-Cutters Act of 2025" aims to strengthen employee cost savings suggestion programs within the Federal Government. It introduces a new category of savings, allowing federal employees to identify "surplus salaries and expenses funds," which are amounts determined to be unnecessary and not required for an agency's core purpose after verification by an Inspector General and Chief Financial Officer. This expands the existing framework for disclosures of fraud, waste, or mismanagement. Upon verification, agencies are required to transfer these surplus funds to the general fund of the Treasury for deficit reduction or debt reduction . To incentivize these identifications, agencies may retain up to 10 percent of the transferred funds. This retained portion is primarily intended to provide cash awards to the employees who identified the savings, with any remaining balance available for agency use. The bill establishes robust oversight and reporting mechanisms, requiring agencies to submit annual reports to the Treasury Secretary detailing total savings achieved and awards paid, which must also be included in their budget requests. The Treasury Secretary will then provide an annual consolidated report to Congress and the Government Accountability Office. Additionally, the Office of Personnel Management is responsible for ensuring agency compliance with the cash award program, and the Comptroller General will periodically report on the program's overall operation. It is important to note that certain high-level federal officers, including agency heads and those at Executive Schedule Level I, are explicitly prohibited from receiving these cash awards. The specific enhancements related to the identification of surplus funds, the associated award system, and the new reporting requirements are subject to a sunset clause , expiring six years after the Act's enactment.
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Timeline

Bill from Previous Congress

S 116-2618
Bonuses for Cost-Cutters Act of 2019

Bill from Previous Congress

S 118-812
Bonuses for Cost-Cutters Act of 2023
Sep 8, 2025
Introduced in Senate
Sep 8, 2025
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Mar 18, 2026

Latest Companion Bill Action

HR 119-428
Committee Consideration and Mark-up Session Held
  • Bill from Previous Congress

    S 116-2618
    Bonuses for Cost-Cutters Act of 2019


  • Bill from Previous Congress

    S 118-812
    Bonuses for Cost-Cutters Act of 2023


  • September 8, 2025
    Introduced in Senate


  • September 8, 2025
    Read twice and referred to the Committee on Homeland Security and Governmental Affairs.


  • March 18, 2026

    Latest Companion Bill Action

    HR 119-428
    Committee Consideration and Mark-up Session Held

Government Operations and Politics

Bonuses for Cost-Cutters Act of 2025

USA119th CongressS-2732| Senate 
| Updated: 9/8/2025
The "Bonuses for Cost-Cutters Act of 2025" aims to strengthen employee cost savings suggestion programs within the Federal Government. It introduces a new category of savings, allowing federal employees to identify "surplus salaries and expenses funds," which are amounts determined to be unnecessary and not required for an agency's core purpose after verification by an Inspector General and Chief Financial Officer. This expands the existing framework for disclosures of fraud, waste, or mismanagement. Upon verification, agencies are required to transfer these surplus funds to the general fund of the Treasury for deficit reduction or debt reduction . To incentivize these identifications, agencies may retain up to 10 percent of the transferred funds. This retained portion is primarily intended to provide cash awards to the employees who identified the savings, with any remaining balance available for agency use. The bill establishes robust oversight and reporting mechanisms, requiring agencies to submit annual reports to the Treasury Secretary detailing total savings achieved and awards paid, which must also be included in their budget requests. The Treasury Secretary will then provide an annual consolidated report to Congress and the Government Accountability Office. Additionally, the Office of Personnel Management is responsible for ensuring agency compliance with the cash award program, and the Comptroller General will periodically report on the program's overall operation. It is important to note that certain high-level federal officers, including agency heads and those at Executive Schedule Level I, are explicitly prohibited from receiving these cash awards. The specific enhancements related to the identification of surplus funds, the associated award system, and the new reporting requirements are subject to a sunset clause , expiring six years after the Act's enactment.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline

Bill from Previous Congress

S 116-2618
Bonuses for Cost-Cutters Act of 2019

Bill from Previous Congress

S 118-812
Bonuses for Cost-Cutters Act of 2023
Sep 8, 2025
Introduced in Senate
Sep 8, 2025
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Mar 18, 2026

Latest Companion Bill Action

HR 119-428
Committee Consideration and Mark-up Session Held
  • Bill from Previous Congress

    S 116-2618
    Bonuses for Cost-Cutters Act of 2019


  • Bill from Previous Congress

    S 118-812
    Bonuses for Cost-Cutters Act of 2023


  • September 8, 2025
    Introduced in Senate


  • September 8, 2025
    Read twice and referred to the Committee on Homeland Security and Governmental Affairs.


  • March 18, 2026

    Latest Companion Bill Action

    HR 119-428
    Committee Consideration and Mark-up Session Held
Rand Paul

Rand Paul

Republican Senator

Kentucky

Homeland Security and Governmental Affairs Committee

Government Operations and Politics

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted