Bonuses for Cost-Cutters Act of 2025

Key Points

• This bill allows federal workers to identify extra money in their agency budgets that is not being used. If agency leaders and watchdogs agree the money is unnecessary, it is sent back to the Treasury to help reduce the national debt.
• To encourage employees to find these savings, agency heads can keep up to 10 percent of the money found. They can use this money to give cash bonuses to the workers who identified the savings and use any leftover amount for other agency needs.
• The bill prevents top-level officials from getting these bonuses. Agency heads, board members, and highest-ranking executives are not eligible for cash awards under this program.
• Every year, agencies must report how much money they saved and how many bonuses they gave out. The Treasury Department will then share this information with Congress to track the program's success.
• This program is designed to be temporary. It will automatically end six years after it starts unless Congress votes to extend it.

Impact Analysis

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