---
kind: "section"
citation: "5 U.S.C. § 4503"
title: "5"
title_heading: "Government Organization and Employees"
number: "4503"
heading: "Agency awards"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/4503"
units:
  - "Part III — Employees"
  - "Subpart C — Employee Performance"
  - "Chapter 45 — Incentive Awards"
  - "Subchapter I — Awards for Superior Accomplishments"
---

# §4503. Agency awards


The head of an [agency](/usc/5/4501.md?p=1) may [pay](/usc/5/7511.md?p=a-4) a cash award to, and incur necessary expense for the honorary recognition of, an [employee](/usc/5/4501.md?p=2) who—

- (1) by his suggestion, invention, superior accomplishment, or other personal effort contributes to the efficiency, economy, or other improvement of [Government](/usc/5/4501.md?p=3) operations or achieves a significant reduction in paperwork; or
- (2) performs a special act or [service](/usc/5/8401.md?p=26) in the public interest in connection with or related to his official employment.

## Source credit

(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 443; Pub. L. 95–454, title V, § 502(a), Oct. 13, 1978, 92 Stat. 1183.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Derivation | U.S. Code | Revised Statutes and<br>Statutes at Large |
|  | 5 U.S.C. 2123(a). | Sept. 1, 1954, ch. 1208, § 304(a), 68 Stat. 1113. |

The word “employee” is substituted for “civilian officers and employees of the Government” in view of the definition of “employee” in section 4501.

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

### Editorial Notes

### Amendments

1978—Par. (1). Pub. L. 95–454 inserted “or achieves a significant reduction in paperwork”.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1978 Amendment

Pub. L. 95–454, title V, § 504(a), Oct. 13, 1978, 92 Stat. 1184, provided that amendment by Pub. L. 95–454 was effective on first day of first applicable pay period which began on or after Oct. 1, 1981, except it could take effect with respect to any category or categories of positions before such day to extent prescribed by Director of Office of Personnel Management.