H.R. 378House115th Congress (2017-2019)Passed House

Bonuses for Cost-Cutters Act of 2017

Introduced January 9, 2017

AI-Generated Summary

Updated April 15, 2026 at 11:42 AM UTC

The Bonuses for Cost‑Cutters Act of 2017 amends the federal employee award program to encourage workers to report wasteful spending. It lets agency heads give cash bonuses of up to $20,000 to employees whose disclosures lead to cost savings, and adds new definitions and reporting requirements. The changes apply to all federal agencies and their employees.

Key Provisions

  • Adds a definition of “wasteful expenses” as amounts identified by an employee and confirmed by the agency’s Chief Financial Officer as unnecessary.
  • Allows agency heads to award cash bonuses of up to $20,000 to any employee whose identification of wasteful expenses results in savings.
  • Requires the agency head to notify the President when wasteful expenses are eligible for rescission under the Budget and Impoundment Control Act.
  • Mandates annual certification by the Director of OPM that each agency’s award program complies with the new rules, and a GAO report every three years for six years.
  • Prohibits awards to Inspector General personnel or anyone already ineligible under existing award statutes.
  • Requires agencies to publish information on wasteful expense disclosures and the number and amount of awards given.

Legislative Activity

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12 earlier actions
SenateIntro Referral Latest Action

Received in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

October 16, 2017

View full timeline
HouseIntro Referral

Introduced in House

January 9, 2017

HouseIntro Referral

Referred to the House Committee on Oversight and Government Reform.

January 9, 2017

HouseCommittee

Committee Consideration and Mark-up Session Held.

July 19, 2017

HouseCommittee

Ordered to be Reported (Amended) by Voice Vote.

July 19, 2017

HouseCommittee

Reported (Amended) by the Committee on Oversight and Government Reform. H. Rept. 115-341.

October 10, 2017

HouseCalendars

Placed on the Union Calendar, Calendar No. 246.

October 10, 2017

HouseFloor

Mr. Russell moved to suspend the rules and pass the bill, as amended.

October 11, 2017 • 3:13 PM

HouseFloor

Considered under suspension of the rules. (consideration: CR H7948-7950)

October 11, 2017 • 3:14 PM

HouseFloor

DEBATE - The House proceeded with forty minutes of debate on H.R. 378.

October 11, 2017 • 3:14 PM

HouseFloor

Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H7948-7949)

October 11, 2017 • 3:24 PM

HouseFloor

On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H7948-7949)

October 11, 2017 • 3:24 PM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

October 11, 2017 • 3:24 PM

SenateIntro Referral

Received in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

October 16, 2017

Floor Debate

3 members

What members said about H.R. 378 on the floor

2 Republicans1 Democrat
Steve Russell
Rep. Steve RussellR-OK-5 · Oct 11, 2017

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…

Eleanor Holmes Norton
Rep. Eleanor Holmes NortonD-DC · Oct 11, 2017

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…

Charles J. "Chuck" 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…

Bill Text

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Referred in SenateIssued October 16, 2017

IIB

115th CONGRESS

1st Session

H. R. 378

IN THE SENATE OF THE UNITED STATES

October 16, 2017

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 disclosures, and for other purposes.

1.

Short title

This Act may be cited as the Bonuses for Cost-Cutters Act of 2017.

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—

(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.

.

Passed the House of Representatives October 11, 2017.

Karen L. Haas,

Clerk