Protection Against Wasteful Spending Act of 2014

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protection Against Wasteful Spending 
Act of 2014''.

SEC. 2. REPORT RECOMMENDATIONS OF WASTEFUL AND EXCESSIVE SPENDING 
              REQUIRED.

    (a) Implementation of Report Recommendations Required.--With 
respect to each of fiscal years 2014 through 2020 and except as 
provided in subsection (b), not later than 4 years after the submission 
of a report regarding wasteful and excessive spending, or duplicative 
programs causing wasteful and excessive spending, by an inspector 
general of an agency (in this Act, referred to as the ``IG report''), 
the head of the agency shall implement all of the recommendations in 
such report.
    (b) Exception.--The implementation requirement in subsection (a) 
shall not apply to a recommendation by an inspector general that would 
violate an existing law. With regard to any such recommendation, the 
head of the relevant agency shall submit to Congress a description of 
the necessary change to the law to legally implement the 
recommendation.
    (c) Report Required.--
            (1) Initial report.--Not later than 6 months after the 
        submission of an IG report, or 6 months after the date of the 
        enactment of this Act, whichever is later, the head of the 
        relevant agency shall submit to Congress a report on--
                    (A) the progress of the implementation of each 
                recommendation in the IG report;
                    (B) the time period required to complete each such 
                implementation;
                    (C) the wasteful and excessive spending, and 
                duplicative programs causing wasteful and excessive 
                spending within each agency described in the IG report;
                    (D) the savings created from the completion of 
                implementing each recommendation; and
                    (E) the reason each recommendation was not 
                implemented before the submission of the IG report.
            (2) Subsequent reports.--Not later than 13 months, and 
        yearly thereafter until an updated report is submitted for 
        fiscal year 2020, after the submission of an IG report, the 
        head of the relevant agency shall submit to Congress an updated 
        report on the information described in subparagraphs (A) 
        through (E) of paragraph (1).

SEC. 3. FAILURE TO IMPLEMENT RECOMMENDATIONS.

    (a) In General.--Any agency that fails to implement a 
recommendation from an IG report, that is not an exception under 
section 2(b), in a timely manner, may not obligate any funds available 
to such agency for--
            (1) convention or seminar attendance and international or 
        domestic travel by any politically-appointed official; or
            (2) any bonus or salary increase, performance or otherwise, 
        with respect to such an official.
    (b) Funds Subject to Obligation Limitation.--On the date that is 60 
days after the submission of a report pursuant to section 2(c) that 
shows that an agency has failed to implement a recommendation of an IG 
report in a timely manner, of the funds prohibited from being obligated 
pursuant to subsection (a) (if any)--
            (1) 50 percent shall be credited to the Highway Trust Fund 
        established under section 9503(a) of the Internal Revenue Code 
        of 1986, to be made available without further appropriation; 
        and
            (2) 50 percent shall be transferred to the Administrator of 
        the Environmental Protection Agency for making capitalization 
        grants for State water pollution control revolving funds under 
        section 603 of the Federal Water Pollution Control Act (33 
        U.S.C. 1382), to be made available without further 
        appropriation.
    (c) Timely Manner Defined.--In this section, the term ``timely 
manner'' means, as determined by the Director of the Office of 
Management and Budget, in consultation with the Comptroller General and 
the inspector general of the relevant agency, with regard to the 
implementation of a recommendation from an IG report, that is not an 
exception under section 2(b)--
            (1) 30 percent completion of such recommendation within the 
        first year following the submission of the IG report; and
            (2) 70 percent completion of such recommendation within the 
        second year following the submission of the IG report.

SEC. 4. USE OF SAVINGS.

    Of the savings (if any) from the implementation of a recommendation 
from an IG report pursuant to this Act--
            (1) 50 percent shall be credited to the Highway Trust Fund 
        established under section 9503(a) of the Internal Revenue Code 
        of 1986, to be made available without further appropriation; 
        and
            (2) 50 percent shall be transferred to the Administrator of 
        the Environmental Protection Agency for making capitalization 
        grants for State water pollution control revolving funds under 
        section 603 of the Federal Water Pollution Control Act (33 
        U.S.C. 1382), to be made available without further 
        appropriation.

SEC. 5. DEFINITIONS.

    In this Act--
            (1) the term ``agency'' has the meaning given that term in 
        section 551 of title 5, United States Code; and
            (2) the term ``politically-appointed official'' means any 
        employee of the Federal Government who is--
                    (A) not paid under the General Schedule (chapter 53 
                of title 5, United States Code); and
                    (B) appointed by the President by and with the 
                advice and consent of the Senate.

Summary: Protection Against Wasteful Spending Act of 2014 - Requires the head of a federal agency to: (1)&nbsp;implement in each of fiscal years 2014-2020 all of the recommendations of the agency's inspector general (IG) regarding wasteful and excessive spending, or duplicative programs causing wasteful and excessive spending, except for any recommendation that would violate an existing law; and (2) report to Congress on such implementation.  Prohibits an agency that fails to implement an IG&nbsp;recommendation in a timely manner from obligating funds for: (1) convention or seminar attendance and international or domestic travel by any politically-appointed official, or (2) any bonus or salary increase for such official.  Directs that such funds that are prohibited from being obligated and amounts saved by the implementation of IG recommendations be credited or transferred&nbsp;equally&nbsp;to: (1) the Highway Trust Fund, and (2) the Administrator of the Environmental Protection Agency (EPA) for capitalization grants for state water pollution control revolving funds under the Clean Water Act.