H.R. 5438 · In committee · Economics and Public Finance

Incentivize Savings Act

Sponsor: Richard McCormick (R-GA)

What it does

• Requires federal agencies to allocate 49% of unexpended appropriations to remain available for an additional fiscal year.
• Directs 49% of unexpended appropriations to payments of principal and interest on the public debt.
• Allocates 2% of unexpended appropriations for retention bonuses within the agency, capped at 10% of an employee's basic pay.
• Caps an agency's budget request for the following fiscal year at the prior year amount, adjusted only for inflation, if the agency had unexpended appropriations under this bill.

Official summary

Incentivize Savings Act This bill establishes requirements for allocating unexpended appropriations for federal agencies. If appropriations are provided to a federal agency for a definite period and the agency does not spend the funds during the period of availability, the bill requires 49% of the funds to remain available for an additional fiscal year, 49% of the funds to be used for payments of principal and interest on the public debt, and 2% of the funds to be used for retention bonuses within the agency that do not exceed 10% of an employee's basic pay. If an agency's unexpended appropriations are allocated under this bill, the agency's budget request for the fiscal year following the fiscal year in which the funds expired may not exceed the prior year's budget request with an adjustment for inflation.

Latest action

Feb 4, 2026: Ordered to be Reported (Amended) by the Yeas and Nays: 25 - 19.

Committee: House Oversight and Government Reform