[Congressional Record Volume 172, Number 96 (Monday, June 8, 2026)]
[House]
[Pages H3936-H3938]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
BONUSES FOR COST-CUTTERS AND FRAUD PREVENTERS ACT OF 2026
Mr. GILL of Texas. Mr. Speaker, I move to suspend the rules and pass
the bill (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,
as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 428
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.
[[Page H3937]]
(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.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Texas (Mr. Gill) and the gentleman from Virginia (Mr. Subramanyam) each
will control 20 minutes.
The Chair recognizes the gentleman from Texas.
General Leave
Mr. GILL of Texas. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks and include extraneous material on this measure.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. GILL of Texas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in support of H.R. 428, the Bonuses for Cost-
Cutters and Fraud Preventers Act of 2026.
This bill expands existing incentives for Federal employees to
identify and disclose waste and abuse before American tax dollars are
spent.
Without incentives to disclose wasteful spending, Federal employees
who are most likely to identify and halt such spending may not speak
up.
It was because of instances like these that in 1981 Congress created
a cash awards program to encourage employees to take proactive action
to prevent waste, fraud, and abuse. This program was so successful that
it was made permanent just over a decade later.
Over the years, these authorities have resulted in creative ideas
coming from agency employees themselves, contributing to the saving of
millions in taxpayer dollars. These cost-cutting ideas included
allowing veterans to use otherwise safe, discarded medicine and
eliminating wasteful printing of the Federal Register.
It is time that Congress does more to expand the cost-saving
potential of Federal employees by expanding these authorities.
{time} 1530
H.R. 428, as amended, increases incentives for Federal employees by
allowing cash awards for reporting wasteful spending and improper
payments before funds go out the door.
The best way to recover misspent tax dollars is to not misspend them
in the first place. I support this important legislation, which helps
preserve Congress' constitutional role in the appropriations process
and helps reduce wasteful spending.
I thank Congressman Chuck Fleischmann for bringing this creative
solution to preventing fraud to the Oversight Committee and for working
with the committee to expand it to address improper payments.
I encourage my colleagues to support this bipartisanship bill.
Mr. Speaker, I reserve the balance of my time.
Mr. SUBRAMANYAM. I yield myself such time as I may consume.
I rise today in support of H.R. 428, as well, the Bonuses for Cost-
Cutters and Fraud Preventers Act 2026. This bipartisan bill would
increase the maximum cash bonus awarded to Federal employees who report
waste, fraud, and abuse, from $10,000 to $20,000. Increasing this award
will encourage more Federal workers to come forward and report on waste
and improper spending. It will reward employees for acting in the best
interest of American taxpayers.
The bill also requires agencies to report on the wasteful and
improper spending reported by employees, promoting transparency.
I thank my colleagues for their work on this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. GILL of Texas. Mr. Speaker, I yield 5 minutes to the gentleman
from Tennessee (Mr. Fleischmann).
Mr. FLEISCHMANN. Mr. Speaker, I rise in support of this bill. Let me
begin by stating a straightforward fact: The Federal Government spends
excessively, and much of these funds are wasted. The Bonuses for Cost-
Cutters and Fraud Preventers Act of 2026 offers a practical solution to
ensure that taxpayers' hard-earned dollars are wisely managed and
efficiently.
This legislation takes our existing Federal rewards program, a
program that already rewards employees who identify fraud, waste, and
mismanagement, and expands it. Under this legislation, any Federal
employee who identifies wasteful operational expenses that an agency
itself determines are not required for its stated purpose can bring
that information forward. The agency will then be required to propose
those funds for rescission. On top of that, we double the maximum cash
award available to employees who identify wasteful spending.
Federal employees are often the first to recognize when funds are
allocated to outdated programs or when bureaucratic practices
prioritize institutional interests over those of taxpayers. For too
long, there has been no incentive to speak up, and in some cases real
disincentives have existed. This bill addresses that issue.
Tennessee's Third District, my district, is home to thousands of
dedicated Federal employees at the Oak Ridge National Laboratory, the
Tennessee Valley Authority, and other Federal sites throughout our
region.
These hard-working public servants take their responsibility to
taxpayers seriously. H.R. 428 honors their commitment by giving them a
meaningful role in eliminating waste and rewarding them for delivering
results to the people who fund our government.
We are taking these steps at a critical moment. The American people
have given us a clear mandate to rein in spending. This administration
is actively working to eliminate waste, fraud, and abuse across the
Federal Government.
The efforts by the Department of Government Efficiency reflect the
same mandate, and H.R. 428 supports that mission by establishing a
permanent statutory framework that will endure beyond any one
administration.
It is also important to emphasize that this is not a partisan bill.
Taxpayers in Tennessee, and across the Nation, regardless of party, do
not want their money wasted. They expect a government that is
accountable, efficient, and worthy of their trust.
I have worked on this legislation for years, and I am proud that the
Oversight Committee has advanced it.
Mr. Speaker, I say to my colleagues on both sides of the aisle, this
is a commonsense, fiscally responsible, pro-taxpayer bill. I urge
everyone to support it.
Mr. SUBRAMANYAM. Mr. Speaker, I yield myself the balance of my time
for closing.
Increasing the bonus for identifying waste, fraud, and abuse will
save taxpayer dollars, make government more efficient, reward honest
workers, and increase accountability.
I thank my colleagues again for this bill, and I urge my colleagues
to support it.
Mr. Speaker, I yield back the balance of my time.
Mr. GILL of Texas. Mr. Speaker, I encourage my colleagues to support
H.R. 428, Bonuses for Cost-Cutters and Fraud Preventers Act of 2026,
which establishes additional incentives for Federal employees to
identify wasteful expenses or improper payments.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Texas (Mr. Gill) that the House suspend the rules and
pass the bill, H.R. 428, as amended.
[[Page H3938]]
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
The title of the bill was amended so as to read: ``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 and improper payment disclosures, and for other purposes.''.
A motion to reconsider was laid on the table.
____________________