I 
115TH CONGRESS 
1ST SESSION 
H. R. 378 
To amend title 5, United States Code, to enhance the authority under which 
Federal agencies may pay cash awards to employees for making cost 
saving disclosures, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 9, 2017 
Mr. FLEISCHMANN (for himself and Mr. COOPER) introduced the following 
bill; which was referred to the Committee on Oversight and Government 
Reform 
A BILL 
To amend title 5, United States Code, to enhance the author-
ity under which Federal agencies may pay cash awards 
to employees for making cost saving disclosures, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Bonuses for Cost-Cut-
ters Act of 2017’’. 
SEC. 2. COST SAVINGS ENHANCEMENTS. 
(a) DEFINITIONS.—Section 4511 of title 5, United 
States Code, is amended— 
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(1) in the section heading, by striking ‘‘Defi-
nition’’ and inserting ‘‘Definitions’’; and 
(2) in subsection (a)— 
(A) by striking the period at the end and 
inserting ‘‘; and’’; 
(B) by striking ‘‘this subchapter, the 
term’’ and inserting the following: ‘‘this sub-
chapter— 
‘‘(1) the term’’; and 
(C) by adding at the end the following: 
‘‘(2) the term ‘unnecessary expenses’ means 
amounts made available for salaries and expenses 
accounts, operations and maintenance accounts, or 
other equivalent accounts— 
‘‘(A) that are identified by an employee of 
the agency under section 4512(a) as unneces-
sary; 
‘‘(B) that the Chief Financial Officer of 
the agency determines are not required for the 
purpose for which the amounts were made 
available; and 
‘‘(C) the rescission of which would not be 
detrimental to the full execution of the purposes 
for which the amounts were made available.’’. 
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(2) in subsection (b) by striking ‘‘awards per-
mitted under this section’’ and inserting ‘‘awards for 
the disclosure of fraud, waste, or mismanagement 
under this section’’; and 
(3) by adding at the end the following: 
‘‘(c)(1) If the Chief Financial Officer of the agency 
determines that potential unnecessary expenses identified 
by an employee meet the requirements of subparagraphs 
(C) and (D) of section 4511(a)(2), except as provided in 
subsection (d), the head of the agency shall transfer the 
amount of the unnecessary expenses or unnecessary budg-
et authority from the applicable appropriations account to 
the general fund of the Treasury. 
‘‘(2) Any amounts transferred under paragraph (1) 
shall be deposited in the Treasury and used for deficit re-
duction, except that in the case of a fiscal year for which 
there is no Federal budget deficit, such amounts shall be 
used to reduce the Federal debt (in such manner as the 
Secretary of the Treasury considers appropriate). 
‘‘(3) In the case of an agency for which there is no 
Chief Financial Officer, the head of the agency shall des-
ignate an agency employee who shall have the authority 
to make the determinations for identification of unneces-
sary expenses under this section. 
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‘‘(d)(1) The head of an agency may retain not more 
than 10 percent of amounts to be transferred to the gen-
eral fund of the Treasury under subsection (c)(1). 
‘‘(2) Amounts retained by the head of an agency 
under paragraph (1) may be— 
‘‘(A) used for the purpose of paying a cash 
award under subsection (a) to one or more employ-
ees who identified the unnecessary expenses; and 
‘‘(B) to the extent amounts remain after paying 
cash awards under subsection (a), transferred or re-
programmed for use by the agency, in accordance 
with any limitation on such a transfer or reprogram-
ming under any other provision of law. 
‘‘(e)(1) Not later than October 1 of each fiscal year, 
the head of each agency shall submit to the Secretary of 
the Treasury a report identifying the total savings 
achieved during the previous fiscal year through disclo-
sures of possible fraud, waste, or mismanagement and 
identifications of unnecessary expenses by an employee. 
‘‘(2) Not later than September 30 of each fiscal year, 
the head of each agency shall submit to the Secretary of 
the Treasury a report that, for the previous fiscal year— 
‘‘(A) describes each disclosure of possible fraud, 
waste, or mismanagement or identification of poten-
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tially unnecessary expenses by an employee of the 
agency determined by the agency to have merit; and 
‘‘(B) provides the number and amount of cash 
awards by the agency under subsection (a). 
‘‘(3) The head of each agency shall include the infor-
mation described in paragraphs (1) and (2) in each budget 
request of the agency submitted to the Office of Manage-
ment and Budget as part of the preparation of the budget 
of the President submitted to Congress under section 
1105(a) of title 31. 
‘‘(4) The Secretary of the Treasury shall submit to 
the Committee on Appropriations of the Senate, the Com-
mittee on Appropriations of the House of Representatives, 
and the Government Accountability Office an annual re-
port on Federal cost saving and awards based on the re-
ports submitted under paragraphs (1) and (2). 
‘‘(f) The Director of the Office of Personnel Manage-
ment shall— 
‘‘(1) ensure that the cash award program of 
each agency complies with this section; and 
‘‘(2) submit to Congress an annual certification 
indicating whether the cash award program of each 
agency complies with this section. 
‘‘(g) Not later than 3 years after the date of enact-
ment of the Bonuses for Cost-Cutters Act of 2017, and 
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every 3 years thereafter, the Comptroller General of the 
United States shall submit to Congress a report on the 
operation of the cost savings and awards program under 
this section, including any recommendations for legislative 
changes.’’. 
(c) TECHNICAL AND CONFORMING AMENDMENT.— 
The table of sections for subchapter II of chapter 45 of 
title 5, United States Code, is amended by striking the 
item relating to section 4511 and inserting the following: 
‘‘4511. Definitions and general provisions.’’. 
SEC. 3. OFFICERS ELIGIBLE FOR CASH AWARDS. 
(a) IN GENERAL.—Section 4509 of title 5, United 
States Code, is amended to read as follows: 
‘‘§ 4509. Prohibition of cash award to certain officers 
and employees 
‘‘An individual may not receive a cash award under 
this subchapter if the individual— 
‘‘(1) is an officer serving in a position at level 
I of the Executive Schedule; 
‘‘(2) is the head of an agency; 
‘‘(3) is an officer or employee of the Office of 
the Inspector General of an agency; or 
‘‘(4) is a commissioner, board member, or other 
voting member of an independent establishment.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.— 
The table of sections for chapter 45 of title 5, United 
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States Code, is amended by striking the item relating to 
section 4509 and inserting the following: 
‘‘4509. Prohibition of cash award to certain officers and employees.’’. 
Æ 
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