HR428-119

What This Bill Does

This bill expands federal employee award authority for cost cutting and fraud prevention. It defines wasteful expenses, incorporates improper-payment terminology, and allows agency heads to pay cash awards to employees whose identification of wasteful expenses saves agency money or whose identification prevents an improper payment that would have caused financial loss to the government.

The bill raises the maximum award from $10,000 to $20,000, adds Chief Financial Officers to the review process, requires agency heads to notify the President when CFOs identify wasteful expenses or prevented improper payments that should be considered for rescission, and requires public reporting on meritorious disclosures and awards.

Who Benefits and How

Federal employees benefit from a larger possible award and a clearer path to receive cash awards for identifying wasteful expenses or preventing improper payments. Federal taxpayers benefit if agencies cancel unnecessary spending or prevent improper payments. Agency Chief Financial Officers benefit from an explicit role in validating wasteful-expense and improper-payment findings.

Who Bears the Burden and How

Agency heads and CFOs must create processes, evaluate employee submissions, notify the President about rescission candidates or prevented improper payments, and report award information. Employees in Inspector General offices and employees otherwise ineligible under the amended statute remain barred from receiving awards.

Key Provisions

• Defines wasteful expenses and adds improper-payment terminology to the federal employee award statute.
• Authorizes cash awards when employees identify wasteful expenses that save money or prevent improper payments.
• Raises the maximum individual award from $10,000 to $20,000.
• Requires agency CFO determinations and agency-head notifications to the President for rescission or improper-payment prevention.
• Requires agencies to report meritorious disclosures and the number and amount of awards.