Bill > HR5438

This bill, known as the "Incentivize Savings Act", establishes new rules for how federal agencies handle unexpended funds at the end of their budget period. Specifically, when a federal agency does not spend all of its allocated funds during the designated time frame, 49% of those unspent funds will remain available for use in the next fiscal year, another 49% will be applied to paying down the public debt, and 2% will be used for retention bonuses for agency employees. The retention bonuses are capped at 10% of an employee's basic pay, and any remaining bonus funds will also go toward debt reduction. Additionally, in the fiscal year following the unexpended funds period, the agency's budget request to the Office of Management and Budget cannot exceed its previous year's budget request, with only an adjustment allowed for changes in the Consumer Price Index. The bill applies to executive branch agencies, including the U.S. Postal Service, but excludes the American National Red Cross. By creating this framework, the bill aims to incentivize federal agencies to be more efficient with their budgeted funds and provide a mechanism for potential savings and debt reduction.

Government Affairs

https://www.congress.gov/bill/119th-congress/house-bill/5438/all-info