S. 2732 · In committee · Government Operations and Politics

Bonuses for Cost-Cutters Act of 2025

Sponsor: Rand Paul (R-KY)

What it does

• Amends the federal employee cost-savings suggestion program to include identification of surplus salaries and expenses funds that agencies determine are unnecessary and not required for statutory purposes.
• Requires agency Inspectors General or designated employees to refer identified surplus funds to the Chief Financial Officer, who determines whether they meet statutory criteria and authorizes transfer to the Treasury for deficit reduction.
• Allows agency heads to retain up to 10 percent of transferred surplus funds to pay cash awards to employees who identified the savings, with remaining amounts available for agency reprogramming.
• Directs the Secretary of the Treasury, Director of the Office of Personnel Management, and Comptroller General to issue annual reports on federal cost savings and awards, and ensures OPM certifies agency compliance with the program.
• Applies a 6-year sunset to new surplus-funds provisions, after which the law reverts to prior cost-savings language.

Latest action

Aug 6, 2026: Committee on Homeland Security and Governmental Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.

Committee: Senate Homeland Security and Governmental Affairs