Bonuses for Cost-Cutters Act of 2025

This bill would expand an existing federal awards program to allow employees to receive bonuses for identifying specific operational expenses that are wasteful or unnecessary. Agencies would be required to propose these identified funds for rescission if they are determined to be surplus to the agency's needs. Additionally, the legislation proposes to double the maximum cash award currently available to employees who identify fraud, waste, or mismanagement.

This bill directly affects federal employees who identify fraud, waste, mismanagement, or unnecessary operational expenses within their agencies. Federal agencies are also affected, as they must evaluate identified expenses and propose those determined to be wasteful for rescission. Additionally, the bill impacts the administration of federal awards programs by doubling the maximum cash award available to employees for these cost-saving identifications.

• Expansion of cost-saving award program. The bill expands the existing awards program for federal employees who identify fraud, waste, or mismanagement to include the identification of specific wasteful operational expenses.
• Identification and rescission of wasteful expenses. Federal agencies must determine if identified operational expenses are unnecessary for their intended purposes and propose those funds for rescission.
• Increase in maximum cash awards. The legislation doubles the maximum cash award amount that may be granted to federal employees under the cost-saving identification program.

• H.R. 428, Bonuses for Cost-Cutters and Fraud Preventers Act of 2025
  Apr 21, 2026 · As ordered reported by the House Committee on Oversight and Government Reform on March 18, 2026

This bill expands an existing federal awards program that compensates employees for identifying fraud, waste, or mismanagement. It modifies the program's scope to include the identification of specific wasteful operational expenses and doubles the maximum cash award currently authorized under the program.

The bill aims to incentivize federal employees to identify wasteful operational expenses by expanding the existing awards program for reporting fraud, waste, or mismanagement. It requires agencies to propose identified wasteful funds for rescission and increases the maximum cash reward available to employees who successfully identify such savings.