H.R. 5438

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5438 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 5438

To incentivize Federal agencies to create savings for the American 
people, and for other purposes.

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IN THE HOUSE OF REPRESENTATIVES

September 17, 2025

Mr. McCormick (for himself, Mr. Brecheen, Mr. Edwards, Mr. Baird, and 
Mr. Cline) introduced the following bill; which was referred to the 
Committee on Oversight and Government Reform, and in addition to the 
Committee on the Budget, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned

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A BILL

To incentivize Federal agencies to create savings for the American 
people, 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 ``Incentivize Savings Act''.

SEC. 2. SPECIAL RULES FOR FEDERAL AGENCY BUDGETS AND BONUSES.

(a) In General.--Subchapter I of chapter 13 of title 31, United 
States Code, is amended by inserting at the end the following:
``Sec. 1311. Special rules for unexpended Federal agency appropriations
``(a) In General.--If a Federal agency does not expend funds 
appropriated or otherwise made available to the agency for a definite 
period during the period of availability of such funds--
``(1) 49 percent of such total funds shall remain available 
for an additional fiscal year;
``(2) 49 percent of such total funds shall be used for 
payments of principal and interest on the public debt; and
``(3) 2 percent of such total funds shall be used, not 
later than the date that is 30 days after the last day of the 
applicable period of availability, for retention bonuses within 
such Federal agency under section 5754 of title 5.
``(b) Application.--In carrying out subsection (a)(3)--
``(1) notwithstanding such section 5754, any retention 
bonus paid under such subsection may not exceed an amount equal 
to 10 percent of the applicable employee's basic pay; and
``(2) any amounts remaining of such total funds after 
paying all bonuses under such subsection shall be used for 
payments of principal and interest on the public debt.
``(c) Budget Request.--If subsection (a) is applied to the funds of 
a Federal agency, with respect to the fiscal year following the fiscal 
year in which the availability of such funds expired, the budget 
submission of the agency to the Office of Management and Budget, and 
the budget request for the agency in the President's annual budget 
submission to Congress under section 1105(a) of this title, may not be 
greater than the total amount of the budget request for the agency for 
the fiscal year in which the availability of such funds expired, 
adjusted by the percentage change in the Consumer Price Index (all 
items--United States city average) between such fiscal years.
``(d) Definition of Federal Agency.--As used in this section, the 
term `Federal agency' means an Executive agency (as that term is 
defined in section 105 of title 5) or any other agency of the executive 
branch of the Federal Government, including the United States Postal 
Service and the Postal Regulatory Commission, but does not include the 
American National Red Cross.''.
(b) Clerical Amendment.--The table of contents for such subchapter 
is amended by inserting after the item relating to section 1310 the 
following:

``1311. Special rules for unexpended Federal agency appropriations.''.
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