Bonuses for Cost-Cutters Act of 2025

The Bonuses for Cost-Cutters Act of 2025 creates a program to reward federal employees who identify unnecessary spending in agency budgets. Employees can report funds not required for agency operations (called "surplus salaries and expenses funds"), and agencies must verify these savings through their Inspector General or designated staff. If verified, agencies transfer the funds to the Treasury for deficit reduction, while retaining up to 10% of the amount to pay cash awards to the employees who identified the savings. Agencies must submit annual reports on savings and awards to the Treasury, which then shares this data with Congress. The program expires 6 years after enactment.