Bill would split agencies' unspent funds among debt, reuse and bonuses

What does this do?

The bill changes how leftover federal agency money is handled instead of letting it expire or return fully to the Treasury. It splits unspent funds into three parts: 49% stays with the agency for one more year, 49% goes to paying down the national public debt, and 2% funds employee retention bonuses capped at 10% of base pay. It also caps an agency's next budget request at its previous request plus inflation if it left money unspent.

Who does it affect?

The bill applies to federal executive branch agencies, including the U.S. Postal Service and the Postal Regulatory Commission, but excludes the American Red Cross. It affects federal employees, agency budget planners, and taxpayers.

Why does it matter?

The change could alter how agencies plan future budgets and manage employee compensation, and it ties a portion of unspent funds to national debt reduction. It may also raise questions about agencies' ability to secure needed funding in future years.

What does it cost, and who pays?

• 49% stays with agency next year
• 49% goes to national debt
• 2% funds capped bonuses