Analyst Brief June 08, 2026

H.R. 428 — Bonuses for Cost-Cutters and Fraud Preventers Act, as amended

Current Status

Scheduled for Floor Consideration (Suspension of the Rules)

Executive Summary

H.R. 428 incentivizes federal employees to identify wasteful spending and improper payments by doubling the maximum allowable cash award for such disclosures from $10,000 to $20,000. The legislation establishes a formal verification process requiring agency Chief Financial Officers to validate the savings, mandates reporting of significant waste to the President and Treasury, and requires oversight by OPM, OMB, and GAO. By leveraging the frontline federal workforce, the bill aims to curb government waste proactively while providing structured accountability to ensure bonuses are strictly justified.

Bill Data

Primary Sponsor

Rep. Fleischmann

Bill Number

H.R. 428

Session

119th

Co-Sponsors

None
View on Congress.gov ↗

Arguments For

  • Argument 1: Empowers rank-and-file federal workers to act as internal watchdogs, potentially saving taxpayers millions by preventing improper payments before they occur.
  • Argument 2: Provides a strong, bipartisan 'good government' talking point on cutting bureaucratic waste without resorting to broad, politically difficult agency budget cuts.

Likely Supporters

Federal Employee Unions (e.g., AFGE, NTEU)Taxpayer Watchdog Groups (e.g., Citizens Against Government Waste)

Arguments Against

  • Argument 1: Could create perverse incentives where employees allow administrative problems to develop just to 'discover' them later and claim a $20,000 bonus.
  • Argument 2: Adds administrative burden to agency CFOs and OMB to verify claims, issue guidance, and draft reports, potentially costing more in bureaucratic overhead than it saves in smaller agencies.

Likely Opponents

None specified

📋 Key Provisions

  • Doubles the maximum cash award for federal employees who identify cost savings or prevent improper payments from $10,000 to $20,000.
  • Requires agency Chief Financial Officers (CFOs) to verify identified wasteful expenses and improper payments before awards are granted.
  • Mandates agency heads to notify the President of verified wasteful expenses and the Treasury Secretary of prevented improper payments.
  • Excludes Office of Inspector General (OIG) employees from receiving these cash awards to prevent conflicts of interest.
  • Directs OMB to issue implementation guidance within six months and requires GAO to submit recurring reports on the program's effectiveness.
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Claim Analysis Page 3, Line 19

Doubles the maximum cash award to $20,000.

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"‘‘$10,000’’ and inserting ‘‘$20,000’’"

Claim Analysis Page 5, Line 23

Excludes Inspector General employees from receiving the award.

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"employee of the Office of the"

Claim Analysis Page 5, Line 1

Requires agency heads to notify the Treasury Secretary of prevented improper payments.

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"tify the Secretary of the Treasury"

Claim Analysis Page 7, Line 5

Requires OMB to issue guidance within six months.

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"Not later than six months"