Bonuses for Cost-Cutters Act of 2025

The Bonuses for Cost-Cutters Act of 2025 would create a formal, time-limited program to identify and recover “surplus salaries and expenses funds” within federal agency budgets. Under the act, federal employees who identify funds that are unnecessary or not required could trigger a transfer of those funds to the general fund of the Treasury, where they would be used to reduce the federal deficit (or the debt if there is no deficit). Up to 10% of any transferred amount could be used by the agency head to pay cash awards to the employees who identified the surplus. The remainder would be available for the agency to reprogram or use as allowed by law. The bill also adds reporting and oversight requirements (by agency IGs, CFOs, OPM, the Treasury, GAO, and Congress) and provides for an annual assessment of the program. Notably, the act includes a sunset provision—six years after enactment—all of the new definitions and several provisions would expire and revert to current law. It also narrows who can receive cash awards by prohibiting high-ranking officers from receiving such awards.