H.R. 428House119th Congress (2025-2027)Passed House

Bonuses for Cost-Cutters and Fraud Preventers Act of 2026

Introduced January 15, 2025

AI-Generated Summary

Updated June 13, 2026 at 5:51 AM UTC

The Bonuses for Cost‑Cutters and Fraud Preventers Act of 2026 updates federal law so agencies can pay larger cash bonuses—up to $20,000—to workers who spot wasteful spending or stop improper payments. It adds new definitions, expands the types of disclosures that qualify, and creates reporting and oversight requirements to ensure the program is used properly. The changes affect all federal agencies and their employees who might receive or administer these awards.

Key Provisions

  • Adds definitions for “improper payment,” “payment,” and “wasteful expenses” to the existing rules for agency cash awards.
  • Lets agency heads give cash awards of up to $20,000 to employees who identify wasteful expenses that save money or prevent an improper payment that would cost the government.
  • Requires the agency’s Chief Financial Officer (or a designated employee if no CFO) to certify the wasteful expense or improper payment and to notify the President or Treasury Secretary accordingly.
  • Bars employees of an agency’s Inspector General or anyone otherwise ineligible from receiving an award.
  • Mandates the Director of OPM, OMB, and the Treasury Secretary ensure agency award programs follow the new rules and submit an annual compliance certification to congressional oversight committees.
  • Calls for OMB (with OPM and Treasury) to issue implementation guidance within six months, covering how employees should report, how agencies should evaluate reports, and how award amounts are set.
  • Requires the Comptroller General to report on the program’s operation every two years after an initial three‑year report.
  • Sets the new award rules to take effect one year after the law’s enactment.

Legislative Activity

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11 earlier actions
SenateIntro Referral Latest Action

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

June 9, 2026

View full timeline
HouseIntro Referral

Introduced in House

January 15, 2025

HouseIntro Referral

Referred to the House Committee on Oversight and Government Reform.

January 15, 2025

HouseCommittee

Committee Consideration and Mark-up Session Held

March 18, 2026

HouseCommittee

Ordered to be Reported (Amended) by the Yeas and Nays: 40 - 0.

March 18, 2026

HouseFloor

Mr. Gill (TX) moved to suspend the rules and pass the bill, as amended.

June 8, 2026 • 3:28 PM

HouseFloor

Considered under suspension of the rules. (consideration: CR H3936-3938)

June 8, 2026 • 3:28 PM

HouseFloor

DEBATE - The House proceeded with forty minutes of debate on H.R. 428.

June 8, 2026 • 3:28 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 H3936-3937)

June 8, 2026 • 3:35 PM

HouseFloor

On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3936-3937)

June 8, 2026 • 3:35 PM

HouseFloor

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

June 8, 2026 • 3:35 PM

HouseFloor

The title of the measure was amended. Agreed to without objection.

June 8, 2026 • 3:35 PM

SenateIntro Referral

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

June 9, 2026

Floor Debate

3 members

What members said about H.R. 428 on the floor

2 Republicans1 Democrat
Brandon Gill
Rep. Brandon GillR-TX-26 · Jun 8, 2026

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 428) to amend title 5, United States Code, to enhance the authority under which Federal agencies may pay cash awards to employees for…

Charles J. "Chuck" Fleischmann

Mr. Speaker, I rise in support of this bill. Let me begin by stating a straightforward fact: The Federal Government spends excessively, and much of these funds are wasted. The Bonuses for Cost-…

Suhas Subramanyam
Rep. Suhas SubramanyamD-VA-10 · Jun 8, 2026

I yield myself such time as I may consume. I rise today in support of H.R. 428, as well, the Bonuses for Cost- Cutters and Fraud Preventers Act 2026. This bipartisan bill would increase the maximum…

Bill Text

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Referred in SenateIssued June 9, 2026

IIB

119th CONGRESS

2d Session

H. R. 428

IN THE SENATE OF THE UNITED STATES

June 9, 2026

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 and improper payment disclosures, and for other purposes.

1.

Short title

This Act may be cited as the Bonuses for Cost-Cutters and Fraud Preventers Act of 2026.

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 a semicolon;

(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 terms improper payment and payment have the meanings given such terms, respectively, in section 3351 of title 31; and

(3)

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 the heading, by inserting and improper payment before disclosures;

(2)

in subsection (a)—

(A)

by inserting after the first sentence the following: 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 such agency, through a process determined by the head of such agency, has resulted in cost savings for the agency or prevented a payment that, if made, would be an improper payment resulting in financial loss to the Government.;

(B)

in paragraph (1) by striking $10,000 and inserting $20,000;

(C)

in paragraph (2)—

(i)

by inserting or prevented improper payments after cost savings;

(ii)

by inserting Chief Financial Officer, after Inspector General,;

(iii)

by striking subsection (b) and inserting subsection (b) or (c), as applicable; and

(iv)

by inserting or identification after disclosure; and

(D)

in the matter following paragraph (2)—

(i)

by inserting , Chief Financial Officer, after Inspector General;

(ii)

by inserting or prevented improper payments after cost savings; and

(iii)

by inserting or identification after disclosure; and

(3)

by adding at the end the following:

(c)
(1)

If the Chief Financial Officer of an agency determines that potential wasteful expenses identified by an employee meet the requirements of section 4511(a)(3)(B), the head of such agency shall notify the President.

(2)

If the Chief Financial Officer of an agency determines that a payment identified by an employee would, if made, be an improper payment resulting in financial loss to the Government, the head of such agency shall notify the Secretary of the Treasury of such payment for purposes of preventing similar improper payments.

(3)

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 or prevented improper payments 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 or prevented improper payments pursuant to which an award was made under this section, including—

(1)

a description of each disclosure of possible wasteful expenses or improper payments 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, in coordination with the Director of the Office of Management and Budget and the Secretary of the Treasury, shall—

(1)

ensure that the cash award program of each agency under this section complies with this section; and

(2)

submit to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate an annual certification indicating whether the cash award program of each agency under this section complies with this section.

(g)

Not later than 3 years after the date of enactment of the Bonuses for Cost-Cutters and Fraud Preventers Act of 2026, and every 2 years thereafter for 4 years, the Comptroller General of the United States shall submit to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate a report on the operation of the cost savings and awards program under this section, including any recommendations for legislative changes.

.

(c)

Office of Management and Budget guidance

(1)

In general

Not later than six months after the date of the enactment of this Act, the Director of the Office of Management and Budget, in coordination with the Director of the Office of Personnel Management and the Secretary of the Treasury, shall issue guidance to Federal agencies on implementing the amendments made by this Act.

(2)

Contents

The Director of the Office of Management and Budget shall include in the guidance required by paragraph (1) the following:

(A)

Guidelines for employees of Federal agencies to identify and report within the agency of such employee a wasteful expense or improper payment.

(B)

Guidelines for Federal agencies to make a determination as to whether an identification of a wasteful expense or improper payment is appropriate.

(C)

Guidelines for determining an appropriate cash award for an employee of a Federal agency who identifies and reports a wasteful expense or improper payment, including any considerations for such employee’s grade, locality pay, and other considerations that may factor into the aggregate compensation limit applicable to such employee in a given calendar year.

(D)

Procedures for reporting actions taken under the amendments made by this Act to the Office of Management and Budget, the Department of the Treasury, and the Office of Personnel Management, as appropriate.

(d)

Effective date

The amendments made by this section shall take effect on the date that is one year after the date of the enactment of this Act.

(e)

Technical and conforming amendment

The table of sections for subchapter II of chapter 45 of title 5, United States Code, is amended—

(1)

by striking the item relating to section 4511 and inserting the following:

4511. Definitions and general provisions.

; and


(2)

by striking the item relating to section 4512 and inserting the following:

4512. Agency awards for cost savings and improper payment disclosures.

.

Passed the House of Representatives June 8, 2026.

Kevin F. McCumber,

Clerk.