The "Bonuses for Cost-Cutters Act" incentivizes federal employees to identify wasteful government spending by increasing the maximum reward for cost-saving disclosures to $20,000 and requiring agencies to report publicly on these efforts. It aims to cut wasteful expenses and reward employees who contribute to these savings.
Charles "Chuck" Fleischmann
Representative
TN-3
The "Bonuses for Cost-Cutters Act of 2025" incentivizes federal employees to identify wasteful government spending by increasing the maximum reward for cost-saving disclosures from $10,000 to $20,000. It mandates agencies to report publicly on wasteful expense disclosures and requires oversight from the Office of Personnel Management and regular reports to Congress on the program's effectiveness. This act aims to enhance government efficiency and transparency by encouraging employees to find and report unnecessary expenditures.
Bonuses for Cost-Cutters Act Doubles Down on Rewards for Spotting Wasteful Spending, Caps at $20,000
The "Bonuses for Cost-Cutters Act of 2025" aims to slash wasteful government spending by significantly boosting incentives for federal employees to identify and report unnecessary expenses. Instead of a pat on the back, employees could get a chunk of change. This bill essentially doubles the reward for whistleblowing on waste, bumping the maximum payout from $10,000 to $20,000.
Show Me the Money (Saved)
The core of the bill revolves around rewarding federal employees who flag "wasteful expenses." The bill defines these as funds that an employee identifies as unnecessary and that the agency's Chief Financial Officer (CFO) confirms aren't needed. Think unused software licenses, overstocked supplies, or that fancy coffee machine contract that nobody uses. If an employee's tip-off leads to actual cost savings, they could be eligible for a cash award – up to that new $20,000 cap (SEC. 2).
For example, imagine a mid-level manager at a federal agency notices they're paying for 500 subscriptions to a project management software when only 100 employees are actually using it. They flag it, the CFO confirms the waste, and the agency cancels the extra 400 subscriptions. That's a direct cost saving, and that manager could be in line for a bonus.
Paper Trail and Presidential Peeks
It's not just about handing out cash, though. The bill also puts some new reporting requirements in place. Agency heads are now required to notify the President directly about potential wasteful expenses identified by employees (SEC. 2). The idea is that the President can then use this information to propose budget cuts. Agencies will also have to publicly report, on their websites, the details of credible wasteful expense disclosures, including the number and amounts of cash awards given out (SEC. 2). This is all about transparency and accountability.
Who's In, Who's Out, and What's Next?
Notably, employees of the Inspectors General offices, who are supposed to find waste, are not eligible for these rewards (SEC. 2). The Office of Personnel Management (OPM) is tasked with making sure agencies are following the new rules and reporting back to Congress annually (SEC. 2). The Comptroller General, essentially the government's top watchdog, will also be reviewing the program every three years for the first nine years, offering recommendations for improvement (SEC. 2).
The Real-World Wrinkle
While the bill's goal of cutting waste is straightforward, there are a few potential hitches. For one, there’s the question of what exactly counts as "wasteful." One person's unnecessary expense might be another person's essential tool. There's a risk that employees, motivated by the potential for a hefty bonus, might mischaracterize necessary expenses to snag a reward. Also, the extra reporting requirements add to agencies' administrative workload, which could be a burden, especially for smaller agencies. Whether the increased scrutiny and potential for rewards will truly lead to significant cost savings, or just create more paperwork and potential for disputes, remains to be seen.