[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 428 Referred in Senate (RFS)]
<DOC>
119th CONGRESS
2d Session
H. R. 428
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 9, 2026
Received; read twice and referred to the Committee on Homeland Security
and Governmental Affairs
_______________________________________________________________________
AN ACT
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 and improper payment 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 and Fraud
Preventers Act of 2026''.
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
a semicolon;
(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 terms `improper payment' and `payment' have the
meanings given such terms, respectively, in section 3351 of
title 31; and
``(3) 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 the heading, by inserting ``and improper payment''
before ``disclosures'';
(2) in subsection (a)--
(A) by inserting after the first sentence the
following: ``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
such agency, through a process determined by the head
of such agency, has resulted in cost savings for the
agency or prevented a payment that, if made, would be
an improper payment resulting in financial loss to the
Government.'';
(B) in paragraph (1) by striking ``$10,000'' and
inserting ``$20,000'';
(C) in paragraph (2)--
(i) by inserting ``or prevented improper
payments'' after ``cost savings'';
(ii) by inserting ``Chief Financial
Officer,'' after ``Inspector General,'';
(iii) by striking ``subsection (b)'' and
inserting ``subsection (b) or (c), as
applicable''; and
(iv) by inserting ``or identification''
after ``disclosure''; and
(D) in the matter following paragraph (2)--
(i) by inserting ``, Chief Financial
Officer,'' after ``Inspector General'';
(ii) by inserting ``or prevented improper
payments'' after ``cost savings''; and
(iii) by inserting ``or identification''
after ``disclosure''; and
(3) by adding at the end the following:
``(c)(1) If the Chief Financial Officer of an agency determines
that potential wasteful expenses identified by an employee meet the
requirements of section 4511(a)(3)(B), the head of such agency shall
notify the President.
``(2) If the Chief Financial Officer of an agency determines that a
payment identified by an employee would, if made, be an improper
payment resulting in financial loss to the Government, the head of such
agency shall notify the Secretary of the Treasury of such payment for
purposes of preventing similar improper payments.
``(3) 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 or prevented improper payments
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 or prevented improper payments pursuant to which an award was
made under this section, including--
``(1) a description of each disclosure of possible wasteful
expenses or improper payments 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, in
coordination with the Director of the Office of Management and Budget
and the Secretary of the Treasury, shall--
``(1) ensure that the cash award program of each agency
under this section complies with this section; and
``(2) submit to the Committee on Oversight and Government
Reform of the House of Representatives and the Committee on
Homeland Security and Governmental Affairs of the Senate an
annual certification indicating whether the cash award program
of each agency under this section complies with this section.
``(g) Not later than 3 years after the date of enactment of the
Bonuses for Cost-Cutters and Fraud Preventers Act of 2026, and every 2
years thereafter for 4 years, the Comptroller General of the United
States shall submit to the Committee on Oversight and Government Reform
of the House of Representatives and the Committee on Homeland Security
and Governmental Affairs of the Senate a report on the operation of the
cost savings and awards program under this section, including any
recommendations for legislative changes.''.
(c) Office of Management and Budget Guidance.--
(1) In general.--Not later than six months after the date
of the enactment of this Act, the Director of the Office of
Management and Budget, in coordination with the Director of the
Office of Personnel Management and the Secretary of the
Treasury, shall issue guidance to Federal agencies on
implementing the amendments made by this Act.
(2) Contents.--The Director of the Office of Management and
Budget shall include in the guidance required by paragraph (1)
the following:
(A) Guidelines for employees of Federal agencies to
identify and report within the agency of such employee
a wasteful expense or improper payment.
(B) Guidelines for Federal agencies to make a
determination as to whether an identification of a
wasteful expense or improper payment is appropriate.
(C) Guidelines for determining an appropriate cash
award for an employee of a Federal agency who
identifies and reports a wasteful expense or improper
payment, including any considerations for such
employee's grade, locality pay, and other
considerations that may factor into the aggregate
compensation limit applicable to such employee in a
given calendar year.
(D) Procedures for reporting actions taken under
the amendments made by this Act to the Office of
Management and Budget, the Department of the Treasury,
and the Office of Personnel Management, as appropriate.
(d) Effective Date.--The amendments made by this section shall take
effect on the date that is one year after the date of the enactment of
this Act.
(e) Technical and Conforming Amendment.--The table of sections for
subchapter II of chapter 45 of title 5, United States Code, is
amended--
(1) by striking the item relating to section 4511 and
inserting the following:
``4511. Definitions and general provisions.''; and
(2) by striking the item relating to section 4512 and
inserting the following:
``4512. Agency awards for cost savings and improper payment
disclosures.''.
Passed the House of Representatives June 8, 2026.
Attest:
KEVIN F. MCCUMBER,
Clerk.