I 
119TH CONGRESS 
1ST SESSION H. R. 5438 
To incentivize Federal agencies to create savings for the American people, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 17, 2025 
Mr. MCCORMICK (for himself, Mr. BRECHEEN, Mr. EDWARDS, Mr. BAIRD, 
and Mr. CLINE) introduced the following bill; which was referred to the 
Committee on Oversight and Government Reform, and in addition to the 
Committee on the Budget, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To incentivize Federal agencies to create savings for the 
American people, 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 ‘‘Incentivize Savings 
Act’’. 
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SEC. 2. SPECIAL RULES FOR FEDERAL AGENCY BUDGETS 
AND BONUSES. 
(a) IN GENERAL.—Subchapter I of chapter 13 of title 
31, United States Code, is amended by inserting at the 
end the following: 
‘‘§ 1311. Special rules for unexpended Federal agency 
appropriations 
‘‘(a) IN GENERAL.—If a Federal agency does not ex-
pend funds appropriated or otherwise made available to 
the agency for a definite period during the period of avail-
ability of such funds— 
‘‘(1) 49 percent of such total funds shall remain 
available for an additional fiscal year; 
‘‘(2) 49 percent of such total funds shall be 
used for payments of principal and interest on the 
public debt; and 
‘‘(3) 2 percent of such total funds shall be used, 
not later than the date that is 30 days after the last 
day of the applicable period of availability, for reten-
tion bonuses within such Federal agency under sec-
tion 5754 of title 5. 
‘‘(b) APPLICATION.—In carrying out subsection 
(a)(3)— 
‘‘(1) notwithstanding such section 5754, any re-
tention bonus paid under such subsection may not 
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exceed an amount equal to 10 percent of the applica-
ble employee’s basic pay; and 
‘‘(2) any amounts remaining of such total funds 
after paying all bonuses under such subsection shall 
be used for payments of principal and interest on 
the public debt. 
‘‘(c) BUDGET REQUEST.—If subsection (a) is applied 
to the funds of a Federal agency, with respect to the fiscal 
year following the fiscal year in which the availability of 
such funds expired, the budget submission of the agency 
to the Office of Management and Budget, and the budget 
request for the agency in the President’s annual budget 
submission to Congress under section 1105(a) of this title, 
may not be greater than the total amount of the budget 
request for the agency for the fiscal year in which the 
availability of such funds expired, adjusted by the percent-
age change in the Consumer Price Index (all items— 
United States city average) between such fiscal years. 
‘‘(d) DEFINITION OF FEDERAL AGENCY.—As used in 
this section, the term ‘Federal agency’ means an Execu-
tive agency (as that term is defined in section 105 of title 
5) or any other agency of the executive branch of the Fed-
eral Government, including the United States Postal Serv-
ice and the Postal Regulatory Commission, but does not 
include the American National Red Cross.’’. 
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(b) CLERICAL AMENDMENT.—The table of contents 
for such subchapter is amended by inserting after the item 
relating to section 1310 the following: 
‘‘1311. Special rules for unexpended Federal agency appropriations.’’. 
Æ 
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