Bill · S. 2732· Senate(119-S-2732)
Bonuses for Cost-Cutters Act of 2025
- Introduced
- 9/8/2025
- Last activity
- 8/6/2026 — Committee on Homeland Security and Governmental Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
- Sponsored by
- Rand Paul
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
The "Bonuses for Cost-Cutters Act of 2025" aims to strengthen employee cost savings suggestion programs within the Federal Government. It establishes a process for employees to identify "surplus salaries and expenses funds" that are unnecessary for an agency's purpose. Once verified by the Inspector General and Chief Financial Officer, these funds are transferred to the Treasury for deficit reduction or to reduce Federal debt. Agency heads are permitted to retain up to 10 percent of these transferred amounts to pay cash awards to the employees who identified the savings. The bill also includes strict reporting requirements to ensure transparency and accountability regarding these savings and awards.
Yes· 3 of 5
Does this reduce what the federal government owes?+5
The bill directs identified surplus funds to be used to reduce the Federal debt if there is no budget deficit.
Does this reduce what the federal government spends?+5
The bill creates a mechanism to identify and transfer surplus salaries and expenses funds back to the Treasury.
Does this make the government pay for what it commits to?+5
The bill implements a system to reclaim unnecessary agency funds for debt reduction or deficit reduction.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Financial Incentives for Employees: Under Section 2(a)(2)(d)(2)(A), agency heads can use retained funds to pay cash awards to employees who identify surplus salaries and expenses funds. This provides a direct financial benefit to federal workers who contribute to cost savings.
-
Deficit and Debt Reduction: According to Section 2(a)(2)(c)(2)(A) and (B), identified surplus funds are transferred to the Treasury to be used for deficit reduction or, if there is no deficit, to reduce the Federal debt.
-
Increased Transparency and Accountability: Section 2(a)(2)(e) requires agency heads to submit annual reports to the Secretary of the Treasury detailing total savings achieved and the number/amount of cash awards paid. Additionally, Section 2(a)(2)(g) requires the Comptroller General to submit a report to Congress every three years regarding the operation of the program.
Potential Negative Impacts for People
- Limitations on Award Eligibility: Section 2(a)(b)(1)(b) prohibits certain high-level officials—including those at level I of the Executive Schedule, agency heads, or commissioners and board members of independent establishments—from receiving cash awards under this subchapter.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Fiscal Responsibility+5Reduces Government Spending+5Reduces National Debt+5
- Governance And Ideology
- Improves Government Transparency+5Increases Federal Power+2
- 8/6/2026
- Committee on Homeland Security and Governmental Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
- 8/5/2026
- 1 Cosponsor added.
- 9/8/2025
- Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- Introduced in Senate
David McCormickRepublican · Pennsylvania