II 

118TH CONGRESS 

1ST SESSION S. 812 

To strengthen employee cost savings suggestions programs within the Federal 

Government. 

IN THE SENATE OF THE UNITED STATES 

MARCH 15, 2023 

Mr. PAUL (for himself and Mr. BENNET) introduced the following bill; which 

was read twice and referred to the Committee on Homeland Security and 

Governmental Affairs 

A BILL 

To strengthen employee cost savings suggestions programs 

within the Federal Government. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Bonuses for Cost-Cut5 ters Act of 2023’’. 

6 SEC. 2. COST SAVINGS ENHANCEMENTS. 

7 (a) IN GENERAL.— 

8 (1) DEFINITIONS.—Section 4511 of title 5, 

9 United States Code, is amended— 


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1 (A) in the section heading, by striking 

2 ‘‘Definition’’ and inserting ‘‘Definitions’’; 

3 and 

4 (B) in subsection (a)— 

5 (i) by striking ‘‘this subchapter, the 

6 term’’ and inserting the following: ‘‘this 

7 subchapter— 

8 ‘‘(1) the term’’; 

9 (ii) by striking the period at the end 

10 and inserting ‘‘; and’’; and 

11 (iii) by adding at the end the fol12 lowing: 

13 ‘‘(2) the term ‘surplus salaries and expenses 

14 funds’ means amounts made available for the sala15 ries and expenses account, or equivalent account, of 

16 an agency— 

17 ‘‘(A) that are identified by an employee of 

18 the agency under section 4512(a) as unneces19 sary; 

20 ‘‘(B) that the Inspector General of the 

21 agency or other agency employee designated 

22 under section 4512(b) determines are not re23 quired for the purpose for which the amounts 

24 were made available; 


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1 ‘‘(C) that the Chief Financial Officer of 

2 the agency determines are not required for the 

3 purpose for which the amounts were made 

4 available; and 

5 ‘‘(D) the rescission of which would not be 

6 detrimental to the full execution of the purposes 

7 for which the amounts were made available.’’. 

8 (2) AUTHORITY.—Section 4512 of title 5, 

9 United States Code, is amended— 

10 (A) in subsection (a)— 

11 (i) in the matter preceding paragraph 

12 (1), by inserting ‘‘or identification of sur13 plus salaries and expenses funds’’ after 

14 ‘‘mismanagement’’; 

15 (ii) in paragraph (2), by inserting ‘‘or 

16 identification’’ after ‘‘disclosure’’; and 

17 (iii) in the matter following paragraph 

18 (2), by inserting ‘‘or identification’’ after 

19 ‘‘disclosure’’; and 

20 (B) by adding at the end the following: 

21 ‘‘(c)(1) The Inspector General of an agency or other 

22 agency employee designated under subsection (b) shall 

23 refer to the Chief Financial Officer of the agency any po24 tential surplus salaries and expenses funds identified by 

25 an employee that the Inspector General or other agency 


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1 employee determines meet the requirements under sub2 paragraphs (B) and (D) of section 4511(a)(2), along with 

3 any recommendations of the Inspector General or other 

4 agency employee. 

5 ‘‘(2)(A) If the Chief Financial Officer of the agency 

6 determines that potential surplus salaries and expenses 

7 funds referred under paragraph (1) meet the requirements 

8 under section 4511(a)(2), except as provided in subsection 

9 (d), the head of the agency shall transfer the amount of 

10 the surplus salaries and expenses funds from the applica11 ble appropriations account to the general fund of the 

12 Treasury. 

13 ‘‘(B) Any amounts transferred under subparagraph 

14 (A) shall be deposited in the Treasury and used for deficit 

15 reduction, except that in the case of a fiscal year for which 

16 there is no Federal budget deficit, such amounts shall be 

17 used to reduce the Federal debt (in such manner as the 

18 Secretary of the Treasury considers appropriate). 

19 ‘‘(3) The Inspector General or other agency employee 

20 designated under subsection (b) for each agency and the 

21 Chief Financial Officer for each agency shall issue stand22 ards and definitions for purposes of making determina23 tions relating to potential surplus salaries and expenses 

24 funds identified by an employee under this subsection. 


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1 ‘‘(d)(1) The head of an agency may retain not more 

2 than 10 percent of amounts to be transferred to the gen3 eral fund of the Treasury under subsection (c)(2). 

4 ‘‘(2) Amounts retained by the head of an agency 

5 under paragraph (1) may be— 

6 ‘‘(A) used for the purpose of paying a cash 

7 award under subsection (a) to 1 or more employees 

8 who identified the surplus salaries and expenses 

9 funds; and 

10 ‘‘(B) to the extent amounts remain after paying 

11 cash awards under subsection (a), transferred or re12 programmed for use by the agency, in accordance 

13 with any limitation on such a transfer or reprogram14 ming under any other provision of law. 

15 ‘‘(e)(1) Not later than October 1 of each fiscal year, 

16 the head of each agency shall submit to the Secretary of 

17 the Treasury a report identifying the total savings 

18 achieved during the previous fiscal year through disclo19 sures of possible fraud, waste, or mismanagement and 

20 identifications of surplus salaries and expenses funds by 

21 an employee. 

22 ‘‘(2) Not later than September 30 of each fiscal year, 

23 the head of each agency shall submit to the Secretary of 

24 the Treasury a report that, for the previous fiscal year— 


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1 ‘‘(A) describes each disclosure of possible fraud, 

2 waste, or mismanagement or identification of poten3 tially surplus salaries and expenses funds by an em4 ployee of the agency determined by the agency to 

5 have merit; and 

6 ‘‘(B) provides the number and amount of cash 

7 awards paid by the agency under subsection (a). 

8 ‘‘(3) The head of each agency shall include the infor9 mation described in paragraphs (1) and (2) in each budget 

10 request of the agency submitted to the Office of Manage11 ment and Budget as part of the preparation of the budget 

12 of the President submitted to Congress under section 

13 1105(a) of title 31. 

14 ‘‘(4) The Secretary of the Treasury shall submit to 

15 the Committee on Appropriations of the Senate, the Com16 mittee on Appropriations of the House of Representatives, 

17 and the Government Accountability Office an annual re18 port on Federal cost saving and awards based on the re19 ports submitted under paragraphs (1) and (2). 

20 ‘‘(f) The Director of the Office of Personnel Manage21 ment shall— 

22 ‘‘(1) ensure that the cash award program of 

23 each agency complies with this section; and 


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1 ‘‘(2) submit to Congress an annual certification 

2 indicating whether the cash award program of each 

3 agency complies with this section. 

4 ‘‘(g) Not later than 3 years after the date of enact5 ment of this subsection, and every 3 years thereafter, the 

6 Comptroller General of the United States shall submit to 

7 Congress a report on the operation of the cost savings and 

8 awards program under this section, including any rec9 ommendations for legislative changes.’’. 

10 (3) TECHNICAL AND CONFORMING AMEND11 MENT.—The table of sections for subchapter II of 

12 chapter 45 of title 5, United States Code, is amend13 ed by striking the item relating to section 4511 and 

14 inserting the following: 

‘‘4511. Definitions and general provisions.’’. 

15 (4) SUNSET.—Effective 6 years after the date 

16 of enactment of this Act— 

17 (A) section 4511 of title 5, United States 

18 Code, is amended— 

19 (i) in the section heading, by striking 

20 ‘‘Definitions’’ and inserting ‘‘Defini21 tion’’; and 

22 (ii) in subsection (a)— 

23 (I) in paragraph (1), by striking 

24 ‘‘; and’’ and inserting a period; 


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1 (II) by striking ‘‘this sub2 chapter—’’ and all that follows 

3 through ‘‘the term ‘agency’ means’’ 

4 and inserting ‘‘this subchapter, the 

5 term ‘agency’ means’’; and 

6 (III) by striking paragraph (2); 

7 (B) section 4512 of title 5, United States 

8 Code, is amended— 

9 (i) in subsection (a)— 

10 (I) in the matter preceding para11 graph (1), by striking ‘‘or identifica12 tion of surplus salaries and expenses 

13 funds’’; 

14 (II) in paragraph (2), by striking 

15 ‘‘or identification’’; and 

16 (III) in the matter following 

17 paragraph (2), by striking ‘‘or identi18 fication’’; and 

19 (ii) by striking subsections (c) 

20 through (g); and 

21 (C) the table of sections for subchapter II 

22 of chapter 45 of title 5, United States Code, is 

23 amended by striking the item relating to section 

24 4511 and inserting the following: 

‘‘4511. Definition and general provisions.’’. 

25 (b) OFFICERS ELIGIBLE FOR CASH AWARDS.— 


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1 (1) IN GENERAL.—Section 4509 of title 5, 

2 United States Code, is amended to read as follows: 

3 ‘‘§ 4509. Prohibition of cash award to certain officers 

4 ‘‘(a) DEFINITION.—In this section, the term ‘agen5 cy’— 

6 ‘‘(1) has the meaning given that term under 

7 section 551(1); and 

8 ‘‘(2) includes an entity described in section 

9 4501(1). 

10 ‘‘(b) PROHIBITION.—An officer may not receive a 

11 cash award under this subchapter if the officer— 

12 ‘‘(1) serves in a position at level I of the Execu13 tive Schedule; 

14 ‘‘(2) is the head of an agency; or 

15 ‘‘(3) is a commissioner, board member, or other 

16 voting member of an independent establishment.’’. 

17 (2) TECHNICAL AND CONFORMING AMEND18 MENT.—The table of sections for subchapter I of 

19 chapter 45 of title 5, United States Code, is amend20 ed by striking the item relating to section 4509 and 

21 inserting the following: 

‘‘4509. Prohibition of cash award to certain officers.’’. 

Æ 


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