S. 812Senate118th Congress (2023-2025)In Committee

Bonuses for Cost-Cutters Act of 2023

Sponsored by Rand PaulSen. Rand Paul (R-KY)
Introduced March 15, 2023

AI-Generated Summary

Updated January 20, 2026 at 4:51 AM UTC

The Bonuses for Cost‑Cutters Act of 2023 creates a federal program that rewards employees with cash awards when they identify surplus salary and expense funds, and it strengthens overall cost‑saving suggestion programs. Agencies must transfer approved surplus funds to the Treasury, keeping up to 10% to pay the awards, and report the savings and awards each year. The law also bars certain senior officials from receiving cash awards.

Key Provisions

  • Adds a definition of “surplus salaries and expenses funds” and incorporates it into existing cost‑savings statutes
  • Requires employees to report surplus funds; Inspector General and Chief Financial Officer review and, if approved, transfer the funds to the Treasury for deficit or debt reduction
  • Allows agency heads to retain up to 10% of transferred amounts to pay cash awards to the identifying employees, with any remaining retained funds eligible for reprogramming
  • Mandates annual reports from agency heads to the Treasury detailing savings, fraud disclosures, and cash awards, and inclusion of this information in budget requests
  • Requires the Office of Personnel Management to certify agency compliance and the Comptroller General to report on the program every three years
  • Prohibits cash awards to officers at Executive Schedule Level I, agency heads, and commissioners or voting members of independent establishments

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

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

March 15, 2023

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SenateIntro Referral

Introduced in Senate

March 15, 2023

SenateIntro Referral

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

March 15, 2023

Floor Debate

10 members

What members said about S. 812 on the floor

8 Republicans2 Democrats
Gregory W. Meeks
Rep. Gregory W. MeeksD-NY-5 · Sep 11, 2024

Mr. Chair, I yield myself such time as I may consume. Mr. Chair, I stand in opposition to H.R. 1425. We can't forget the dark times that COVID-19 brought to our communities across the United States…

Warren Davidson
Rep. Warren DavidsonR-OH-8 · Sep 11, 2024

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 H.R. 1425. Mr. Chairman, I yield…

Thomas Massie
Rep. Thomas MassieR-KY-4 · Sep 11, 2024

Mr. Chair, I have an amendment at the desk. Mr. Chairman, I rise in support of my amendment, which simply recognizes that the United States Constitution is the supreme law of the land. Our…

Andrew Ogles
Rep. Andrew OglesR-TN-5 · Sep 11, 2024

Mr. Chair, I have an amendment at the desk. Mr. Chair, this amendment would make it the policy of our Nation to advocate for Taiwan's full participation in the World Health Organization. For far too…

Barbara Lee
Rep. Barbara LeeD-CA-12 · Sep 11, 2024

Mr. Chairman, I thank our ranking member, Mr. Meeks, for his tremendous leadership on so many fronts especially as it relates to global peace and security. I thank him for yielding me time. Mr.…

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Christopher H. Smith
Rep. Christopher H. SmithR-NJ-4 · Sep 11, 2024

Mr. Chair, I am a proud cosponsor of Rep. Tiffany's H.R. 1425, No WHO pandemic Treaty Without Senate Approval Act. H.R. 1425 would ensure that any international instrument on pandemic prevention,…

Virginia Foxx
Rep. Virginia FoxxR-NC-5 · Sep 11, 2024

Mr. Chair, I have an amendment at the desk. Mr. Chairman, I rise in support of my amendment. Mr. Chairman, the United States must never relinquish its sovereignty. Without question, we must work to…

Bob Good
Rep. Bob GoodR-VA-5 · Sep 11, 2024

Mr. Chair, Mr. Meeks talks like there is a final draft of the treaty. We, again, have not seen it. How else would he seem to know or claim to know that it is an executive agreement? We thought it was…

Thomas P. Tiffany
Rep. Thomas P. TiffanyR-WI-7 · Sep 11, 2024

Mr. Chair, I thank the gentleman from Ohio for his leadership. Mr. Chair, who do you want in charge of a pandemic policy in the United States? Do you want the corrupt globalists at the World Health…

Keith Self
Rep. Keith SelfR-TX-3 · Sep 11, 2024

Mr. Chair, my constituents in Texas did not elect a single member of the World Health Organization to represent them. This globalist cabal known as the WHO capitalized on the CCP bioweapon which we…

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in SenateIssued March 15, 2023

II

118th CONGRESS

1st Session

S. 812

IN THE SENATE OF THE UNITED STATES

March 15, 2023

Mr. Paul (for himself and Mr. Bennet) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs

A BILL

To strengthen employee cost savings suggestions programs within the Federal Government.

1.

Short title

This Act may be cited as the Bonuses for Cost-Cutters Act of 2023.

2.

Cost savings enhancements

(a)

In general

(1)

Definitions

Section 4511 of title 5, United States Code, is amended—

(A)

in the section heading, by striking Definition and inserting Definitions; and

(B)

in subsection (a)—

(i)

by striking this subchapter, the term and inserting the following: “this subchapter—

(1)

the term

;

(ii)

by striking the period at the end and inserting ; and; and

(iii)

by adding at the end the following:

(2)

the term surplus salaries and expenses funds means amounts made available for the salaries and expenses account, or equivalent account, of an agency—

(A)

that are identified by an employee of the agency under section 4512(a) as unnecessary;

(B)

that the Inspector General of the agency or other agency employee designated under section 4512(b) determines are not required for the purpose for which the amounts were made available;

(C)

that the Chief Financial Officer of the agency determines are not required for the purpose for which the amounts were made available; and

(D)

the rescission of which would not be detrimental to the full execution of the purposes for which the amounts were made available.

.

(2)

Authority

Section 4512 of title 5, United States Code, is amended—

(A)

in subsection (a)—

(i)

in the matter preceding paragraph (1), by inserting or identification of surplus salaries and expenses funds after mismanagement;

(ii)

in paragraph (2), by inserting or identification after disclosure; and

(iii)

in the matter following paragraph (2), by inserting or identification after disclosure; and

(B)

by adding at the end the following:

(c)
(1)

The Inspector General of an agency or other agency employee designated under subsection (b) shall refer to the Chief Financial Officer of the agency any potential surplus salaries and expenses funds identified by an employee that the Inspector General or other agency employee determines meet the requirements under subparagraphs (B) and (D) of section 4511(a)(2), along with any recommendations of the Inspector General or other agency employee.

(2)
(A)

If the Chief Financial Officer of the agency determines that potential surplus salaries and expenses funds referred under paragraph (1) meet the requirements under section 4511(a)(2), except as provided in subsection (d), the head of the agency shall transfer the amount of the surplus salaries and expenses funds from the applicable appropriations account to the general fund of the Treasury.

(B)

Any amounts transferred under subparagraph (A) shall be deposited in the Treasury and used for deficit reduction, except that in the case of a fiscal year for which there is no Federal budget deficit, such amounts shall be used to reduce the Federal debt (in such manner as the Secretary of the Treasury considers appropriate).

(3)

The Inspector General or other agency employee designated under subsection (b) for each agency and the Chief Financial Officer for each agency shall issue standards and definitions for purposes of making determinations relating to potential surplus salaries and expenses funds identified by an employee under this subsection.

(d)
(1)

The head of an agency may retain not more than 10 percent of amounts to be transferred to the general fund of the Treasury under subsection (c)(2).

(2)

Amounts retained by the head of an agency under paragraph (1) may be—

(A)

used for the purpose of paying a cash award under subsection (a) to 1 or more employees who identified the surplus salaries and expenses funds; and

(B)

to the extent amounts remain after paying cash awards under subsection (a), transferred or reprogrammed for use by the agency, in accordance with any limitation on such a transfer or reprogramming under any other provision of law.

(e)
(1)

Not later than October 1 of each fiscal year, the head of each agency shall submit to the Secretary of the Treasury a report identifying the total savings achieved during the previous fiscal year through disclosures of possible fraud, waste, or mismanagement and identifications of surplus salaries and expenses funds by an employee.

(2)

Not later than September 30 of each fiscal year, the head of each agency shall submit to the Secretary of the Treasury a report that, for the previous fiscal year—

(A)

describes each disclosure of possible fraud, waste, or mismanagement or identification of potentially surplus salaries and expenses funds by an employee of the agency determined by the agency to have merit; and

(B)

provides the number and amount of cash awards paid by the agency under subsection (a).

(3)

The head of each agency shall include the information described in paragraphs (1) and (2) in each budget request of the agency submitted to the Office of Management and Budget as part of the preparation of the budget of the President submitted to Congress under section 1105(a) of title 31.

(4)

The Secretary of the Treasury shall submit to the Committee on Appropriations of the Senate, the Committee on Appropriations of the House of Representatives, and the Government Accountability Office an annual report on Federal cost saving and awards based on the reports submitted under paragraphs (1) and (2).

(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 this subsection, and every 3 years thereafter, 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.

.

(3)

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.

.

(4)

Sunset

Effective 6 years after the date of enactment of this Act—

(A)

section 4511 of title 5, United States Code, is amended—

(i)

in the section heading, by striking Definitions and inserting Definition; and

(ii)

in subsection (a)—

(I)

in paragraph (1), by striking ; and and inserting a period;

(II)

by striking this subchapter— and all that follows through the term agency means and inserting this subchapter, the term agency means; and

(III)

by striking paragraph (2);

(B)

section 4512 of title 5, United States Code, is amended—

(i)

in subsection (a)—

(I)

in the matter preceding paragraph (1), by striking or identification of surplus salaries and expenses funds;

(II)

in paragraph (2), by striking or identification; and

(III)

in the matter following paragraph (2), by striking or identification; and

(ii)

by striking subsections (c) through (g); and

(C)

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. Definition and general provisions.

.

(b)

Officers eligible for cash awards

(1)

In general

Section 4509 of title 5, United States Code, is amended to read as follows:

4509.

Prohibition of cash award to certain officers

(a)

Definition

In this section, the term agency

(1)

has the meaning given that term under section 551(1); and

(2)

includes an entity described in section 4501(1).

(b)

Prohibition

An officer may not receive a cash award under this subchapter if the officer—

(1)

serves in a position at level I of the Executive Schedule;

(2)

is the head of an agency; or

(3)

is a commissioner, board member, or other voting member of an independent establishment.

.

(2)

Technical and conforming amendment

The table of sections for subchapter I of chapter 45 of title 5, United States Code, is amended by striking the item relating to section 4509 and inserting the following:

.