What This Bill Does
This bill strengthens the federal employee cost savings suggestion program. It allows employees to identify unneeded money (called surplus salaries and expenses funds) in their agency budgets and receive cash rewards for doing so. Money saved goes to reduce the federal deficit or debt.
Who It Affects
Federal employees who work for government agencies and can suggest cost savings. Agency heads, Chief Financial Officers, Inspectors General and other agency officials who review and approve these suggestions. The Treasury Department, which receives the saved money.
Key Provisions
• Employees can identify unneeded money in their agency's salaries and expenses accounts, and agencies must create a process to review these suggestions (Sec. 2(a)(2)).
• When an agency confirms money is truly unneeded, it must transfer that money to the U.S. Treasury for deficit reduction or debt reduction (Sec. 2(a)(2)).
• Agencies can keep up to 10 percent of saved money to pay cash awards to employees who identified the surplus funds, and can use leftover amounts for agency operations (Sec. 2(a)(2)).
• Each agency must report yearly to the Treasury Department on total savings achieved and cash awards paid to employees (Sec. 2(a)(2)).
• The program ends 6 years after this law is enacted, unless Congress extends it (Sec. 2(a)(4)).
What Changes
Federal law will now officially recognize and define "surplus salaries and expenses funds" as money an agency identifies as unnecessary. Employees gain a formal process to suggest these savings and receive rewards. High-ranking officials including agency heads and level I executives cannot receive cash awards under this program.
Important Definitions
"Surplus salaries and expenses funds" means money in an agency's budget account that an employee identifies as unnecessary, that agency leadership confirms is not needed, and that returning to the Treasury would not harm the agency's work.
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 812
To strengthen employee cost savings suggestions programs within the Federal
Government.
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.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Bonuses for Cost-Cut-
4
ters Act of 2023’’.
5
SEC. 2. COST SAVINGS ENHANCEMENTS.
6
(a) IN GENERAL.—
7
(1) DEFINITIONS.—Section 4511 of title 5,
8
United States Code, is amended—
9
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(A) in the section heading, by striking
1
‘‘Definition’’ and inserting ‘‘Definitions’’;
2
and
3
(B) in subsection (a)—
4
(i) by striking ‘‘this subchapter, the
5
term’’ and inserting the following: ‘‘this
6
subchapter—
7
‘‘(1) the term’’;
8
(ii) by striking the period at the end
9
and inserting ‘‘; and’’; and
10
(iii) by adding at the end the fol-
11
lowing:
12
‘‘(2) the term ‘surplus salaries and expenses
13
funds’ means amounts made available for the sala-
14
ries and expenses account, or equivalent account, of
15
an agency—
16
‘‘(A) that are identified by an employee of
17
the agency under section 4512(a) as unneces-
18
sary;
19
‘‘(B) that the Inspector General of the
20
agency or other agency employee designated
21
under section 4512(b) determines are not re-
22
quired for the purpose for which the amounts
23
were made available;
24
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‘‘(C) that the Chief Financial Officer of
1
the agency determines are not required for the
2
purpose for which the amounts were made
3
available; and
4
‘‘(D) the rescission of which would not be
5
detrimental to the full execution of the purposes
6
for which the amounts were made available.’’.
7
(2) AUTHORITY.—Section 4512 of title 5,
8
United States Code, is amended—
9
(A) in subsection (a)—
10
(i) in the matter preceding paragraph
11
(1), by inserting ‘‘or identification of sur-
12
plus salaries and expenses funds’’ after
13
‘‘mismanagement’’;
14
(ii) in paragraph (2), by inserting ‘‘or
15
identification’’ after ‘‘disclosure’’; and
16
(iii) in the matter following paragraph
17
(2), by inserting ‘‘or identification’’ after
18
‘‘disclosure’’; and
19
(B) by adding at the end the following:
20
‘‘(c)(1) The Inspector General of an agency or other
21
agency employee designated under subsection (b) shall
22
refer to the Chief Financial Officer of the agency any po-
23
tential surplus salaries and expenses funds identified by
24
an employee that the Inspector General or other agency
25
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employee determines meet the requirements under sub-
1
paragraphs (B) and (D) of section 4511(a)(2), along with
2
any recommendations of the Inspector General or other
3
agency employee.
4
‘‘(2)(A) If the Chief Financial Officer of the agency
5
determines that potential surplus salaries and expenses
6
funds referred under paragraph (1) meet the requirements
7
under section 4511(a)(2), except as provided in subsection
8
(d), the head of the agency shall transfer the amount of
9
the surplus salaries and expenses funds from the applica-
10
ble appropriations account to the general fund of the
11
Treasury.
12
‘‘(B) Any amounts transferred under subparagraph
13
(A) shall be deposited in the Treasury and used for deficit
14
reduction, except that in the case of a fiscal year for which
15
there is no Federal budget deficit, such amounts shall be
16
used to reduce the Federal debt (in such manner as the
17
Secretary of the Treasury considers appropriate).
18
‘‘(3) The Inspector General or other agency employee
19
designated under subsection (b) for each agency and the
20
Chief Financial Officer for each agency shall issue stand-
21
ards and definitions for purposes of making determina-
22
tions relating to potential surplus salaries and expenses
23
funds identified by an employee under this subsection.
24
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‘‘(d)(1) The head of an agency may retain not more
1
than 10 percent of amounts to be transferred to the gen-
2
eral fund of the Treasury under subsection (c)(2).
3
‘‘(2) Amounts retained by the head of an agency
4
under paragraph (1) may be—
5
‘‘(A) used for the purpose of paying a cash
6
award under subsection (a) to 1 or more employees
7
who identified the surplus salaries and expenses
8
funds; and
9
‘‘(B) to the extent amounts remain after paying
10
cash awards under subsection (a), transferred or re-
11
programmed for use by the agency, in accordance
12
with any limitation on such a transfer or reprogram-
13
ming under any other provision of law.
14
‘‘(e)(1) Not later than October 1 of each fiscal year,
15
the head of each agency shall submit to the Secretary of
16
the Treasury a report identifying the total savings
17
achieved during the previous fiscal year through disclo-
18
sures of possible fraud, waste, or mismanagement and
19
identifications of surplus salaries and expenses funds by
20
an employee.
21
‘‘(2) Not later than September 30 of each fiscal year,
22
the head of each agency shall submit to the Secretary of
23
the Treasury a report that, for the previous fiscal year—
24
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‘‘(A) describes each disclosure of possible fraud,
1
waste, or mismanagement or identification of poten-
2
tially surplus salaries and expenses funds by an em-
3
ployee of the agency determined by the agency to
4
have merit; and
5
‘‘(B) provides the number and amount of cash
6
awards paid by the agency under subsection (a).
7
‘‘(3) The head of each agency shall include the infor-
8
mation described in paragraphs (1) and (2) in each budget
9
request of the agency submitted to the Office of Manage-
10
ment and Budget as part of the preparation of the budget
11
of the President submitted to Congress under section
12
1105(a) of title 31.
13
‘‘(4) The Secretary of the Treasury shall submit to
14
the Committee on Appropriations of the Senate, the Com-
15
mittee on Appropriations of the House of Representatives,
16
and the Government Accountability Office an annual re-
17
port on Federal cost saving and awards based on the re-
18
ports submitted under paragraphs (1) and (2).
19
‘‘(f) The Director of the Office of Personnel Manage-
20
ment shall—
21
‘‘(1) ensure that the cash award program of
22
each agency complies with this section; and
23
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‘‘(2) submit to Congress an annual certification
1
indicating whether the cash award program of each
2
agency complies with this section.
3
‘‘(g) Not later than 3 years after the date of enact-
4
ment of this subsection, and every 3 years thereafter, the
5
Comptroller General of the United States shall submit to
6
Congress a report on the operation of the cost savings and
7
awards program under this section, including any rec-
8
ommendations for legislative changes.’’.
9
(3) TECHNICAL
AND
CONFORMING
AMEND-
10
MENT.—The table of sections for subchapter II of
11
chapter 45 of title 5, United States Code, is amend-
12
ed by striking the item relating to section 4511 and
13
inserting the following:
14
‘‘4511. Definitions and general provisions.’’.
(4) SUNSET.—Effective 6 years after the date
15
of enactment of this Act—
16
(A) section 4511 of title 5, United States
17
Code, is amended—
18
(i) in the section heading, by striking
19
‘‘Definitions’’ and inserting ‘‘Defini-
20
tion’’; and
21
(ii) in subsection (a)—
22
(I) in paragraph (1), by striking
23
‘‘; and’’ and inserting a period;
24
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(II)
by
striking
‘‘this
sub-
1
chapter—’’
and
all
that
follows
2
through ‘‘the term ‘agency’ means’’
3
and inserting ‘‘this subchapter, the
4
term ‘agency’ means’’; and
5
(III) by striking paragraph (2);
6
(B) section 4512 of title 5, United States
7
Code, is amended—
8
(i) in subsection (a)—
9
(I) in the matter preceding para-
10
graph (1), by striking ‘‘or identifica-
11
tion of surplus salaries and expenses
12
funds’’;
13
(II) in paragraph (2), by striking
14
‘‘or identification’’; and
15
(III) in the matter following
16
paragraph (2), by striking ‘‘or identi-
17
fication’’; and
18
(ii)
by
striking
subsections
(c)
19
through (g); and
20
(C) the table of sections for subchapter II
21
of chapter 45 of title 5, United States Code, is
22
amended by striking the item relating to section
23
4511 and inserting the following:
24
‘‘4511. Definition and general provisions.’’.
(b) OFFICERS ELIGIBLE FOR CASH AWARDS.—
25
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(1) IN
GENERAL.—Section 4509 of title 5,
1
United States Code, is amended to read as follows:
2
‘‘§ 4509. Prohibition of cash award to certain officers
3
‘‘(a) DEFINITION.—In this section, the term ‘agen-
4
cy’—
5
‘‘(1) has the meaning given that term under
6
section 551(1); and
7
‘‘(2) includes an entity described in section
8
4501(1).
9
‘‘(b) PROHIBITION.—An officer may not receive a
10
cash award under this subchapter if the officer—
11
‘‘(1) serves in a position at level I of the Execu-
12
tive Schedule;
13
‘‘(2) is the head of an agency; or
14
‘‘(3) is a commissioner, board member, or other
15
voting member of an independent establishment.’’.
16
(2) TECHNICAL
AND
CONFORMING
AMEND-
17
MENT.—The table of sections for subchapter I of
18
chapter 45 of title 5, United States Code, is amend-
19
ed by striking the item relating to section 4509 and
20
inserting the following:
21
‘‘4509. Prohibition of cash award to certain officers.’’.
Æ
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