Bonuses for Cost-Cutters and Fraud Preventers Act of 2026

The bill title changed from 'Bonuses for Cost-Cutters Act of 2025' to 'Bonuses for Cost-Cutters and Fraud Preventers Act of 2026,' reflecting the expanded scope to include fraud prevention alongside cost savings.

New definitions for 'improper payment' and 'payment' were added, incorporating the meanings from section 3351 of title 31 (the Improper Payments Information Act).

Employees can now receive cash awards not only for identifying wasteful expenses that result in cost savings, but also for preventing improper payments that would result in financial loss to the Government. The identification process is now left to be determined by the head of each agency.

The maximum cash award per employee was doubled from $10,000 to $20,000.

A new requirement was added: when an employee identifies a payment that would be an improper payment resulting in financial loss, the head of the agency must notify the Secretary of the Treasury for purposes of preventing similar improper payments.

A new section requires OMB to issue implementation guidance within 6 months of enactment, covering how employees identify and report wasteful expenses or improper payments, how agencies make determinations, how cash awards are calculated (considering grade, locality pay, and aggregate compensation limits), and reporting procedures.

The OPM Director's oversight role now requires coordination with the OMB Director and the Secretary of the Treasury. Annual compliance certifications are now directed to specific committees (House Oversight and Senate Homeland Security) rather than Congress generally.

GAO reporting frequency changed from every 3 years for 6 years to every 2 years for 4 years, making oversight more frequent over a slightly shorter total period.

A new effective date provision delays the amendments by one year after enactment, giving agencies time to implement the program following OMB guidance.