Bill Seeks Incentives for Cost-Saving Ideas, Implementation

A bill (S-2618) ready for a Senate vote would establish financial incentives for federal employees to make cost-saving suggestions, as well as to reward agencies to carry those out, according to a report on the bill.

Under the bill, an employee can identify unnecessary surplus salary and expenses and refer them to the inspector general of the agency or other agency employees designated to undertake such reviews, as well as the Chief Financial Officer of the agency for review. If the review finds that spending the funds is not “necessary for their intended purpose,” the agency could keep 10 percent of the savings achieved—while returning the rest to the Treasury—money it could use for its own purposes including monetary awards to the employees or groups of employees who made the suggestions.


Among other advantages, it said, the measure would put a damper on unnecessary “use it or lose it” spending near the end of a fiscal year—an issue that has been before the committee, or its predecessors, for decades.

Publication of the report by the Senate Homeland Security and Government Affairs Committee on the bill, which cleared the committee months ago, clears the way for consideration by the full Senate.

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