H.R. 428: Bonuses for Cost-Cutters Act of 2025

The "Bonuses for Cost-Cutters Act of 2025" seeks to amend the United States Code regarding the way federal agencies can reward employees for identifying and disclosing wasteful expenses that lead to cost savings. Below are the key components of the bill:

Definitions

The bill modifies the existing definitions in Section 4511 of Title 5, United States Code, to clarifying that:

• Wasteful expenses: These refer to funds allocated to salaries and expenses, operations and maintenance, or similar categories that an agency employee identifies as unnecessary. Additionally, such expenses must be confirmed as not needed by the agency's Chief Financial Officer.

Authority to Award Cash

The bill introduces changes to Section 4512 of Title 5, allowing new authority for federal agencies to pay cash awards to employees. Key changes include:

• The head of an agency can now pay cash awards to employees who help identify wasteful expenses resulting in cost savings.
• The maximum cash award an employee can receive for such contributions is increased from $10,000 to $20,000.
• Both the Inspector General and Chief Financial Officer of the agency must be involved in the process of identifying and verifying these disclosures.

Reporting and Accountability

The bill requires that:

• If an employee identifies potential wasteful expenses, the Chief Financial Officer must notify the President for consideration of rescinding these identified expenses.
• Agencies without a Chief Financial Officer must designate someone to manage this identification process.
• Heads of agencies must regularly report on the disclosures of wasteful expenses and the number and value of cash awards given under this bill.

Eligibility for Awards

The bill specifies that certain individuals are ineligible to receive cash awards, including:

• Officers or employees of the Office of the Inspector General within any agency.
• Individuals disqualified under section 4509 due to specific existing regulations.

Compliance and Oversight

The Director of the Office of Personnel Management is tasked with ensuring that the cash award programs of federal agencies comply with the new regulations established by this act. The Director must also submit annual certifications to Congress regarding this compliance.

Periodic Review

Lastly, the bill mandates a review of the cost savings and awards program. The Comptroller General of the United States is responsible for reporting on its operation to Congress every three years for a period of six years, providing any recommendations for legislative improvements.

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