---
kind: "section"
citation: "5 U.S.C. § 4512"
title: "5"
title_heading: "Government Organization and Employees"
number: "4512"
heading: "Agency awards for cost savings disclosures"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/4512"
units:
  - "Part III — Employees"
  - "Subpart C — Employee Performance"
  - "Chapter 45 — Incentive Awards"
  - "Subchapter II — Awards for Cost Savings Disclosures"
---

# §4512. Agency awards for cost savings disclosures

- (a) The Inspector General of an [agency](/usc/5/4501.md?p=1), or any other [agency](/usc/5/4501.md?p=1) [employee](/usc/5/4501.md?p=2) designated under [subsection (b)](#b), may [pay](/usc/5/7511.md?p=a-4) a cash award to any [employee](/usc/5/4501.md?p=2) of such [agency](/usc/5/4501.md?p=1) whose disclosure of fraud, waste, or mismanagement to the Inspector General of the [agency](/usc/5/4501.md?p=1), or to such other designated [agency](/usc/5/4501.md?p=1) [employee](/usc/5/4501.md?p=2), has resulted in cost savings for the [agency](/usc/5/4501.md?p=1). The amount of an award under this section may not exceed the lesser of—
  - (1) $10,000; or
  - (2) an amount equal to 1 percent of the [agency](/usc/5/4501.md?p=1)’s cost savings which the Inspector General, or other [employee](/usc/5/4501.md?p=2) designated under [subsection (b)](#b), determines to be the total savings attributable to the [employee](/usc/5/4501.md?p=2)’s disclosure.

  For purposes of [paragraph (2)](#a-2), the Inspector General or other designated [employee](/usc/5/4501.md?p=2) may take into [account](/usc/5/8401.md?p=1) [agency](/usc/5/4501.md?p=1) cost savings projected for subsequent fiscal years which will be attributable to such disclosure.

- (b) In the case of an [agency](/usc/5/4501.md?p=1) for which there is no Inspector General, the head of the [agency](/usc/5/4501.md?p=1) shall designate an [agency](/usc/5/4501.md?p=1) [employee](/usc/5/4501.md?p=2) who shall have the [authority](/usc/5/7103.md?p=a-6) to make the determinations and grant the awards permitted under this section.

## Source credit

(Added Pub. L. 97–35, title XVII, § 1703(a), Aug. 13, 1981, 95 Stat. 755; amended Pub. L. 99–145, title XII, § 1225(b)(2), Nov. 8, 1985, 99 Stat. 730.)

## Notes

### Editorial Notes

### Amendments

1985—Subsec. (c). Pub. L. 99–145 struck out subsec. (c) which provided that the Inspector General, or other employee designated under subsection (b), shall submit to the Comptroller General documentation substantiating any award made under this section and that the Comptroller General shall, from time to time, review awards made under this section and procedures used in making such awards to verify the cost savings for which the awards were made.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Oct. 1, 1981, see section 1703(c) of Pub. L. 97–35, set out as an Effective Date of 1981 Amendment note under section 4501 of this title.