H.R. 428

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 428 Referred in Senate (RFS)]

<DOC>
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.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 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.

Attest:

KEVIN F. MCCUMBER,

Clerk.