Bonuses for Cost-Cutters and Fraud Preventers Act of 2026

Bill Number: H.R. 428
Origin Chamber: House
Congress: 119th Congress, Session 2
Policy Area: Government Operations and Politics
Status: Passed House
Latest Action: 2026-06-09: Received in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Last Updated: 2026-06-13T05:53:28Z

AI-Generated Summary

Purpose This legislation amends title 5 of the United States Code to expand federal agencies' ability to provide cash awards to employees who identify wasteful spending or improper payments that result in cost savings or prevent financial losses to the government.

Key Provisions

Definitions: Updates section 4511 to include definitions for "improper payment" and "payment" (drawn from title 31), and defines "wasteful expenses" as amounts in salaries, operations, or similar accounts that an employee identifies as unnecessary and a Chief Financial Officer confirms are not needed for their original purpose.
Award Authority: Amends section 4512 to allow agency heads to grant cash awards to employees for identifying wasteful expenses or preventing improper payments. The maximum award increases from $10,000 to $20,000. Awards may also cover identifications that result in cost savings or prevent losses.
Notifications and Determinations: Requires agency heads to notify the President about confirmed wasteful expenses and the Secretary of the Treasury about payments that would be improper if made. Agencies without a Chief Financial Officer must designate an employee for these determinations.
Reporting: Agencies must publicly report (alongside existing performance information) details of valid disclosures and the number and amounts of awards granted.
Eligibility Limits: Employees of agency Inspectors General offices and certain other ineligible individuals cannot receive awards.
Oversight: The Office of Personnel Management, in coordination with the Office of Management and Budget and Treasury, must ensure compliance and issue annual certifications. The Comptroller General must submit reports to Congress every two years starting three years after enactment.
Guidance: The Office of Management and Budget must issue implementation guidance within six months, covering employee reporting, agency determinations, award calculations (considering grade and pay limits), and interagency reporting.
Effective Date: Changes take effect one year after enactment.

Significant Changes to Existing Law

Expands the existing cash award program (previously focused on cost savings disclosures) to explicitly cover improper payment prevention.
Raises the individual award cap and broadens who may receive awards by including Chief Financial Officers in review processes.
Adds new reporting, notification, and oversight requirements not present in current law.
Introduces definitions and processes for "wasteful expenses" and improper payments within the award framework.

Potential Impacts

On government agencies: Increases administrative workload for tracking disclosures, making determinations, issuing awards, and preparing public reports; may encourage internal cost-control efforts.
On citizens: No direct effects, though improved identification of improper payments could indirectly reduce government spending and affect program beneficiaries.
On international relations: None identified in the legislation.

Main Stakeholders Affected

Federal agency employees (eligible for awards).
Agency heads, Chief Financial Officers, and designated officials responsible for reviews and notifications.
The Office of Management and Budget, Office of Personnel Management, and Department of the Treasury (for guidance and oversight).
Congress (receives annual certifications and periodic reports).
The Comptroller General (responsible for evaluation reports).

Notable Legal, Constitutional, or Political Implications

The bill operates within existing executive branch authority under title 5 and does not alter constitutional separation of powers.
It strengthens internal accountability mechanisms for federal spending without creating new enforcement powers or penalties.
Reporting requirements increase transparency of agency award programs but remain subject to existing privacy and compensation limits.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Fleischmann, Charles J. "Chuck" [R-TN-3]

Cosponsors (2)

Rep. Case, Ed [D-HI-1], Rep. DesJarlais, Scott [R-TN-4]

Recent Actions

2026-06-09: Received in the Senate and Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
2026-06-08: The title of the measure was amended. Agreed to without objection.
2026-06-08: Motion to reconsider laid on the table Agreed to without objection.
2026-06-08: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3936-3937)
2026-06-08: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3936-3937)
2026-06-08: DEBATE - The House proceeded with forty minutes of debate on H.R. 428.
2026-06-08: Considered under suspension of the rules. (consideration: CR H3936-3938)
2026-06-08: Mr. Gill (TX) moved to suspend the rules and pass the bill, as amended.
2026-03-18: Ordered to be Reported (Amended) by the Yeas and Nays: 40 - 0.
2026-03-18: Committee Consideration and Mark-up Session Held
2025-01-15: Referred to the House Committee on Oversight and Government Reform.
2025-01-15: Introduced in House
2025-01-15: Introduced in House

Bill Versions

Bonuses for Cost-Cutters and Fraud Preventers Act of 2026 — issued 2026-06-08 — PDF (10 pages)
Bonuses for Cost-Cutters Act of 2025 — issued 2025-01-15 — PDF (5 pages)
Bonuses for Cost-Cutters and Fraud Preventers Act of 2026 — issued 2026-06-09 — PDF (9 pages)