--- kind: "diff" citation: "H.R. 428" bill: "119-hr-428" heading: "Bonuses for Cost-Cutters and Fraud Preventers Act of 2026" from: "ih" from_label: "Introduced in House" to: "eh" to_label: "Engrossed in House" sections_amended: 2 sections_added: 0 sections_removed: 0 url: "https://uscodex.org/bills/119/hr/428/changes/eh" --- # H.R. 428 — what changed H.R. 428, Bonuses for Cost-Cutters and Fraud Preventers Act of 2026 — 2 sections amended between Introduced in House and Engrossed in House. Edits are marked `struck` and `inserted`. ## Section 1 Short title - This Act may be cited as the “Bonuses for Cost-Cutters and Fraud Preventers Act of 2025”.2026”. ## Sec. 2 Cost savings enhancements - (a) Definitions— Section 4511 of title 5, United States Code, is amended— - (1) in the section heading, by striking “Definition” and inserting “Definitions”; and - (2) in subsection (a)— - (A) by striking the period at the end and inserting “; and”;a semicolon; - (B) by striking “this subchapter, the term” and inserting the following: “this subchapter— - “(1) the term” - (C) by adding at the end the following: - “(2) the term wasteful expenses means amounts made available for salaries and expenses accounts, operations terms “improper payment” and maintenance accounts, or other equivalent accounts—“payment” have the meanings given such terms, respectively, in section 3351 of title 31; and - “(3) the term wasteful expenses means amounts made available for salaries and expenses accounts, operations and maintenance accounts, or other equivalent accounts— - “(A) that are identified by an employee of the agency under section 4512(a) as wasteful; and - “(B) that the Chief Financial Officer of the agency determines are not required for the purpose for which the amounts were made available.” - (b) Authority— Section 4512 of title 5, United States Code, is amended— - (1) in the heading, by inserting “and improper payment” before “disclosures”; - (2) [was (3)(3)] in subsection (a)— - (A) by inserting after the first sentence the following: “The head of an agency may pay a cash award to any employee of such agency whose identification of wasteful expenses to the Chief Financial Officer of such agency, through a process determined by the head of such agency, has resulted in cost savings for the agency or prevented a payment that, if made, would be an improper payment resulting in financial loss to the Government.”; - (A) by inserting “The head of an agency may pay a cash award to any employee of such agency whose identification of wasteful expenses to the Chief Financial Officer of the agency has resulted in cost savings for the agency.” after the first sentence; - (B) [was (3)(3)(3)] in paragraph (1) by striking “$10,000” and inserting “$20,000”; - (C) [was (3)(3)(4)] in paragraph (2)— - (i) by inserting “or prevented improper payments ” after “cost savings”; - (ii) [was (3)(3)(4)(2)] by inserting “Chief Financial Officer,” after “Inspector General,”; - (iii) by striking “subsection (b)” and inserting “subsection (b) or (c), as applicable”; and - (ii) by striking “employee designated under subsection (b)” and inserting “designated employee”; and - (iv) [was (3)(3)(4)(4)] by inserting “or identification” after “disclosure”; and - (D) [was (3)(3)(5)] in the matter following paragraph (2)— - (i) by inserting “, Chief Financial Officer,” after “Inspector General”; - (ii) by inserting “or prevented improper payments” after “cost savings”; and - (iii) by inserting “or identification” after “disclosure”; and - (i) by inserting “, Chief Financial Officer,” after “Inspector General”; and - (ii) by inserting “or identification” after “disclosure”; - (2) in subsection (b) by striking “awards permitted under this section” and inserting “awards for the disclosure of fraud, waste, or mismanagement under this section”; and - (3) by adding at the end the following: - “(c) - “(1) If the Chief Financial Officer of the an agency determines that potential wasteful expenses identified by an employee meet the requirements of section 4511(a)(2)(B), 4511(a)(3)(B), the head of the such agency shall notify the President for purposes of proposing the expenses for rescission under title X of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 681 et seq.).President. - “(2) In If the case Chief Financial Officer of an agency for which there is no Chief Financial Officer, determines that a payment identified by an employee would, if made, be an improper payment resulting in financial loss to the Government, the head of the agency shall designate an such agency employee who shall have notify the authority to make Secretary of the determinations Treasury of such payment for identification purposes of wasteful expenses under this section.preventing similar improper payments. - “(d) The “(3) In the case of an agency for which there is no Chief Financial Officer, the head of each the agency shall make available, along with, and in designate an agency employee who shall have the same manner and form as, authority to make the provision of information required under section 1116 of title 31, information on disclosures determinations for identification of wasteful expenses or prevented improper payments under this section, including—section. - “(1) a description “(d) The head of each disclosure agency shall make available, along with, and in the same manner and form as, the provision of possible information required under section 1116 of title 31, information on disclosures of wasteful expenses identified by an employee and determined by the agency or prevented improper payments pursuant to have merit; andwhich an award was made under this section, including— - “(1) a description of each disclosure of possible wasteful expenses or improper payments identified by an employee and determined by the agency to have merit; and - “(2) the number and amount of cash awards provided by the agency under subsection (a). - “(e) An individual may not receive a cash award under this subchapter if the individual is— - “(1) an officer or employee of the Office of the Inspector General of an agency; or - “(2) ineligible for a cash award under section 4509. - “(f) The Director of the Office of Personnel Management shall— - “(1) ensure that “(f) The Director of the cash award program Office of each agency complies Personnel Management, in coordination with this section; andthe Director of the Office of Management and Budget and the Secretary of the Treasury, shall— - “(2) submit to Congress an annual certification indicating whether “(1) ensure that the cash award program of each agency under this section complies with this section.section; and - “(g) Not later than 3 years after “(2) submit to the date of enactment Committee on Oversight and Government Reform of the Bonuses for Cost-Cutters Act House of 2025, Representatives and every 3 years thereafter for 6 years, the Comptroller General of the United States shall submit to Congress a report Committee on the operation Homeland Security and Governmental Affairs of the cost savings and awards Senate an annual certification indicating whether the cash award program of each agency under this section, including any recommendations for legislative changes.”section complies with this section. - “(g) Not later than 3 years after the date of enactment of the Bonuses for Cost-Cutters and Fraud Preventers Act of 2026, and every 2 years thereafter for 4 years, the Comptroller General of the United States shall submit to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate a report on the operation of the cost savings and awards program under this section, including any recommendations for legislative changes.” - (c) Office of Management and Budget guidance— - (1) In general— Not later than six months after the date of the enactment of this Act, the Director of the Office of Management and Budget, in coordination with the Director of the Office of Personnel Management and the Secretary of the Treasury, shall issue guidance to Federal agencies on implementing the amendments made by this Act. - (2) Contents— The Director of the Office of Management and Budget shall include in the guidance required by paragraph (1) the following: - (A) Guidelines for employees of Federal agencies to identify and report within the agency of such employee a wasteful expense or improper payment. - (B) Guidelines for Federal agencies to make a determination as to whether an identification of a wasteful expense or improper payment is appropriate. - (C) Guidelines for determining an appropriate cash award for an employee of a Federal agency who identifies and reports a wasteful expense or improper payment, including any considerations for such employee’s grade, locality pay, and other considerations that may factor into the aggregate compensation limit applicable to such employee in a given calendar year. - (D) Procedures for reporting actions taken under the amendments made by this Act to the Office of Management and Budget, the Department of the Treasury, and the Office of Personnel Management, as appropriate. - (d) Effective date— The amendments made by this section shall take effect on the date that is one year after the date of the enactment of this Act. - (e) Technical and conforming amendment— The table of sections for subchapter II of chapter 45 of title 5, United States Code, is amended— - (1) by striking the item relating to section 4511 and inserting the following: - (2) by striking the item relating to section 4512 and inserting the following: - (c) Technical and conforming amendment— The table of sections for subchapter II of chapter 45 of title 5, United States Code, is amended by striking the item relating to section 4511 and inserting the following: