PlainBillCongress, translated.Legislation. Context. Public interest.By Senator Johnson from Committee on Homeland Security and Governmental Affairs filed written report under authority of the order of the Senate of 12/10/2016. Report No. 114-406. Additional views filed.
Congressional Research Service
Version 01 · Reported to Senate with amendment(s) · Dec 9, 2016
Bonuses for Cost-Cutters Act of 2016
(Sec. 2) This bill expands the cash awards program for disclosures by federal employees of fraud, waste, or mismanagement that result in cost savings to the employee's agency to include identification of surplus salaries and expenses funds that: (1) an agency employee identifies as unnecessary, (2) the inspector general and the chief financial officer of the agency determine are not required for the purpose for which the amounts were made available, and (3) the rescission of which would not be detrimental to the full execution of the purposes for which the amounts were made available.
Any savings resulting from such identifications must be deposited in the Treasury and used to reduce a budget deficit or the federal debt. But agencies may retain up to 10% of such savings for the purpose of paying cash awards to employees who identify surplus salaries and expenses funds.
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Each fiscal year, agencies must submit reports to the Department of the Treasury regarding: (1) the total savings achieved through disclosures of possible fraud, waste, or mismanagement and identifications of surplus salaries and expenses funds by an employee; and (2) each disclosure that has merit and the number and amount of cash awards by the agency. This information must also be included in agency budget requests submitted to the Office of Management and Budget.
Treasury must report annually to Congress on federal cost saving and awards based on agency reports about such employee disclosures. The Office of Personnel Management must certify annually whether each agency's cash award program complies with this bill.
Every three years, the Government Accountability Office must report on the operation of the program and any recommendations for legislative improvements.
The amendments in this bill regarding the expansion of the cash awards program and the use of cost savings from such employee identifications shall sunset six years after enactment of this bill.
The bill prohibits the payment of awards to: (1) federal officers who serve in a position at level I of the Executive Schedule; (2) the head of an agency; or (3) a commissioner, board member, or other voting member of an independent establishment.
People & committees
Sen. Paul, Rand [R-KY] · R–KY
Legislative record
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By Senator Johnson from Committee on Homeland Security and Governmental Affairs filed written report under authority of the order of the Senate of 12/10/2016. Report No. 114-406. Additional views filed.
By Senator Johnson from Committee on Homeland Security and Governmental Affairs filed written report under authority of the order of the Senate of 12/10/2016. Report No. 114-406. Additional views filed.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 720.
Committee on Homeland Security and Governmental Affairs. Reported by Senator Johnson with an amendment in the nature of a substitute. Without written report.
Committee on Homeland Security and Governmental Affairs. Reported by Senator Johnson with an amendment in the nature of a substitute. Without written report.
Committee on Homeland Security and Governmental Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Introduced in Senate
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Source last updated: Dec 6, 2025. Consult Congress.gov for the current record.
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