[Congressional Record (Bound Edition), Volume 163 (2017), Part 11]
[House]
[Pages 15803-15805]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  BONUSES FOR COST-CUTTERS ACT OF 2017

  Mr. RUSSELL. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 378) 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. 378

       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 Act 
     of 2017''.

     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 ``; 
     and'';
       (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 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 subsection (a)--
       (A) by inserting ``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 the 
     agency has resulted in cost savings for the agency.'' after 
     the first sentence;
       (B) in paragraph (1) by striking ``$10,000'' and inserting 
     ``$20,000'';
       (C) in paragraph (2)--
       (i) by inserting ``Chief Financial Officer,'' after 
     ``Inspector General,'' ;
       (ii) by striking ``employee designated under subsection 
     (b)'' and inserting ``designated employee''; and
       (iii) by inserting ``or identification'' after 
     ``disclosure''; and
       (D) in the matter following paragraph (2)--
       (i) by inserting ``, Chief Financial Officer,'' after 
     ``Inspector General''; and
       (ii) by inserting ``or identification'' after 
     ``disclosure'';
       (2) in subsection (b) by striking ``awards permitted under 
     this section'' and inserting ``awards for the disclosure of 
     fraud, waste, or mismanagement under this section''; and
       (3) by adding at the end the following:
       ``(c)(1) If the Chief Financial Officer of the agency 
     determines that potential wasteful expenses identified by an 
     employee meet the requirements of section 4511(a)(2)(B), the 
     head of the agency shall notify the President for purposes of 
     proposing the expenses for rescission under title X of the 
     Congressional Budget and Impoundment Control Act of 1974 (2 
     U.S.C. 681 et seq.).
       ``(2) 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 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 under this 
     section, including--
       ``(1) a description of each disclosure of possible wasteful 
     expenses 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--

[[Page 15804]]

       ``(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 
     shall--
       ``(1) ensure that the cash award program of each agency 
     complies with this section; and
       ``(2) submit to Congress an annual certification indicating 
     whether the cash award program of each agency complies with 
     this section.
       ``(g) Not later than 3 years after the date of enactment of 
     the Bonuses for Cost-Cutters Act of 2017, and every 3 years 
     thereafter for 6 years, the Comptroller General of the United 
     States shall submit to Congress a report on the operation of 
     the cost savings and awards program under this section, 
     including any recommendations for legislative changes.''.
       (c) Technical and Conforming Amendment.--The table of 
     sections for subchapter II of chapter 45 of title 5, United 
     States Code, is amended by striking the item relating to 
     section 4511 and inserting the following:

``4511. Definitions and general provisions.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Oklahoma (Mr. Russell) and the gentlewoman from the District of 
Columbia (Ms. Norton) each will control 20 minutes.
  The Chair recognizes the gentleman from Oklahoma.

                              {time}  1515


                             General Leave

  Mr. RUSSELL. 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 the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Oklahoma?
  There was no objection.
  Mr. RUSSELL. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I speak in support of H.R. 378, introduced by the 
gentleman from Tennessee (Mr. Fleischmann), the Bonuses for Cost-
Cutters Act of 2017.
  The people in the best position to identify waste throughout the 
Federal Government are the employees on the front lines at the Federal 
agencies. They are the ones on the ground who know when agencies waste 
money. It is in the taxpayers' best interest to encourage Federal 
employees to report waste when they see it.
  H.R. 378 increases the incentive for Federal employees to report 
wasteful spending by authorizing a reward of up to $20,000 for blowing 
the whistle on waste. This incentive is especially necessary at the end 
of the fiscal year when too many agencies adopt a ``use it or lose it'' 
mentality regarding their budgets.
  Some agencies fear that if they do not spend every last dollar in 
their budget, that Congress will somehow decrease their future funding. 
That dynamic leads to the most outrageous expenditures in the last week 
before the end of the fiscal year on September 30.
  Under the structure put in place by H.R. 378, agency leadership will 
also be able to verify that spending identified by whistleblowers is 
actually wasteful. This was a concern raised by our colleagues in the 
minority. We are thankful for their constructive work in getting this 
bill to a mutually agreeable compromise.
  The bill also maintains Congress' constitutional role in the 
appropriations process. As we know, Congress is responsible for 
authorizing spending by the Federal Government, and this bill is 
careful to respect that authority.
  After the agency's chief financial officer affirms that the spending 
in question is indeed wasteful, the agency must submit a report to the 
President. The President may then submit a recommendation to Congress 
to eliminate the wasteful spending in question.
  H.R. 378 is the result of a bipartisan process, and I urge my 
colleagues to support this bill as an example of what we can achieve 
when both sides put their minds to reform and husband the taxpayers' 
dollars.
  Mr. Speaker, I reserve the balance of my time.
  Ms. NORTON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 378, the Bonuses for Cost-
Cutters Act, as reported by the committee. This legislation enhances 
the existing award program for Federal employees whose identification 
of waste, fraud, and abuse results in cost savings to an agency.
  Every day, Federal employees across the country provide vital 
services to the American people. They ensure that our veterans receive 
the benefits to which they are entitled. They work to keep our air safe 
to breathe and our water safe to drink. They spend long hours and put 
their lives at risk to safeguard our national and homeland security. 
And Federal employees are on the front lines in ensuring that these 
important missions are carried out as effectively and efficiently as 
possible.
  I think we can all agree that no one benefits when taxpayer dollars 
are wasted. This bill aims to increase government efficiency and save 
taxpayer dollars by providing incentives to Federal employees to 
identify wasteful spending. The legislation allows an agency head to 
award an employee a bonus for the identification of wasteful expenses 
that result in agency cost savings.
  The bill also doubles the amount that an inspector general may award 
an employee for disclosures of waste, fraud, and abuse that result in 
cost savings from $10,000 to $20,000.
  In addition, the bill contains several accountability measures so 
that Congress and the American people can determine whether the 
legislation is working as intended. First, agencies must include 
information on disclosures of wasteful spending and awards distributed 
under this legislation in their annual, publicly available, performance 
report.
  The bill also includes a requirement that the director of the Office 
of Management and Budget submit a report to Congress each year 
certifying that each agency's cash award program complies with the 
bill.
  In addition, the bill requires a GAO report on the operation of 
awards program within 3 years, including any recommendations for 
legislative changes. Democratic members of the Oversight and Government 
Reform Committee raised concerns about prior versions of this bill, and 
I want to thank Chairman Gowdy for working with us to address those 
concerns. The bill we have before us today reflects bipartisan 
concerns.
  We must support Federal employees who identify ways to increase 
efficiency and reduce waste. I believe this bill does that, and I urge 
my colleagues to support it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. RUSSELL. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Tennessee (Mr. Fleischmann), the sponsor of this bill.
  Mr. FLEISCHMANN. Mr. Speaker, I rise in support of my bill, the 
Bonuses for Cost-Cutters Act of 2017. I wish to thank the gentleman 
from Oklahoma and the gentlewoman from the District of Columbia.
  Mr. Speaker, what we see today in my bill is what I think the 
American people want, Republicans and Democrats working together with 
good, commonsense legislation that makes sense and saves the American 
taxpayer's money.
  Let's face it: whether we are a family or a business, we have to 
manage our money in the private sector; and the Federal Government, for 
far too long, has been guilty of spending waste, fraud, and abuse. 
There have been so many problems, and the American people know it.
  When we go home and we talk with our constituents, they want us to be 
very good stewards of their money, and they deserve that. That is 
exactly what this bill does, and it does it in a way that does a lot of 
different things that I think is great.
  First of all, as my colleagues on both sides of the aisle have said, 
it incentivizes Federal employees to detect waste. We all know that 
government has a tendency, when they have a pool of money, to spend it, 
whether they need it or not. So if a Federal employee can go in there, 
find this problem out, tell the agency head, he or she now can get up 
to $20,000 of incentive pay. So we have incentivized fiscal 
responsibility in the Federal Government. That is great, and that is 
just good government.
  In addition to that, Mr. Speaker, we look at the United States 
Constitution,

[[Page 15805]]

and that is a document that our Founding Fathers gave us and is so 
important. Why is that so important with this bill? Because when that 
agency head goes to the President of the United States with this 
recommendation, the President of the United States has to come where? 
Back to the Congress, where he should have to come.
  When Congress looks at that recommendation from the President, 
Congress then can make the final determination. So we have fiscal 
responsibility, we have constitutional sanctity, and we have good 
government.
  Most of all, I want to thank my colleagues on both sides of the 
aisle. We have Republicans and Democrats working together, the way the 
American people want us to do, to be fiscally responsible.
  Mr. Speaker, I urge colleagues on both sides of the aisle to pass 
this good government bill.
  Ms. NORTON. Mr. Speaker, I have no further speakers, and I yield back 
the balance of my time.
  Mr. RUSSELL. Mr. Speaker, I urge the adoption of the bill, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Oklahoma (Mr. Russell) that the House suspend the rules 
and pass the bill, H.R. 378, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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