Bill would pay federal workers bonuses for flagging wasteful spending

What does this do?

The bill lets federal employees flag unused, unnecessary funds in their agency's budget for review by the Inspector General and Chief Financial Officer. If confirmed as surplus, the money generally returns to the Treasury, but agencies can keep up to 10% to pay bonuses to the employees who found it and cover other agency needs. The program automatically expires six years after enactment unless Congress renews it.

Who does it affect?

Federal employees across government agencies, especially lower- and mid-level workers, would be eligible for bonuses; top agency officials, senior executives, and independent agency board members are excluded. Taxpayers are affected broadly since recovered funds would go toward reducing the federal deficit or debt.

Why does it matter?

The measure changes financial incentives inside federal agencies and creates new reporting and oversight requirements for the Office of Personnel Management and Government Accountability Office. Its effects on actual savings or bonus payouts would depend on how agencies implement and report the process.

What does it cost, and who pays?

• Agencies keep up to 10% of savings
• rest goes to Treasury
• remainder funds bonuses, agency use