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119-s-2732119th CongressWALLET

Bonuses for Cost-Cutters Act of 2025

Sponsored By: Senator Paul, Rand [R-KY]

In Committee

Summary

Redirecting identified federal surplus salaries and expenses funds to cut the deficit. This bill would create a formal process for agencies to identify unused salary and expense money, require validation by agency watchdogs and finance officers, reward employees who spot savings, and allow validated amounts to be sent to the Treasury for deficit or debt reduction.

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  • Federal employees: Workers who spot savings would be eligible for cash awards, though the bill limits awards for certain senior officers.
  • Agency watchdogs and finance officers: Agency inspectors general or other designated reviewers and chief financial officers would have to validate that funds are unnecessary before those amounts become "surplus salaries and expenses funds."
  • Agencies and the federal ledger: The bill would create a new codified category called surplus salaries and expenses funds that, once validated, could be rescinded and transferred to the Treasury for deficit or debt reduction. The change would expire after a set period unless Congress extends it.

*Would direct identified surplus funds to the Treasury for deficit and debt reduction.*

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Agencies must transfer surplus salary funds

If enacted, agencies would identify unneeded amounts in their salaries and expenses accounts and, after IG and CFO review, transfer those amounts to the U.S. Treasury. The Treasury would use deposits for deficit reduction, or to pay down Federal debt in years without a deficit. Agencies could keep up to 10 percent of transferred amounts to pay cash awards to employees who identified the savings. The program would start upon enactment and would sunset six years after enactment.

No cash awards for senior officials

The bill would prohibit certain senior federal officials from receiving cash awards under this subchapter. That includes officials at Executive Schedule Level I, agency heads, and commissioners, board members, or other voting members of independent establishments. The change would take effect upon enactment.

Sponsors & CoSponsors

Sponsor

Paul, Rand [R-KY]

KY • R

Cosponsors

  • Sen. McCormick, David [R-PA]

    PA • R

    Sponsored 8/5/2026

Roll Call Votes

No roll call votes available for this bill.

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