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.
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.