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Incentivize Savings Act: Federal Agencies Save, Public Debt Reduced

This act aims to encourage federal agencies to save taxpayer money. If agencies do not spend all their allocated funds, a portion will be used to pay down the public debt, and a small part will go towards employee bonuses. This is intended to promote more efficient public financial management and reduce the burden on citizens.
Key points
Federal agencies that do not spend all their allocated funds will direct 49% of unspent funds towards paying down the public debt.
49% of unspent funds will remain available to the agency for an additional fiscal year, providing flexibility in managing resources.
2% of unspent funds will be used for retention bonuses for agency employees, with a cap of 10% of the employee's basic pay.
An agency's budget request for the following fiscal year, after saving funds, cannot exceed the previous year's request, adjusted for inflation, to prevent artificial budget increases.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_5438
Sponsor: Rep. McCormick, Richard [R-GA-7]
Process start date: 2025-09-17
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Incentivize Savings Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_5438.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-09-17.

What are the main provisions?

Key points include:

  • Federal agencies that do not spend all their allocated funds will direct 49% of unspent funds towards paying down the public debt.
  • 49% of unspent funds will remain available to the agency for an additional fiscal year, providing flexibility in managing resources.
  • 2% of unspent funds will be used for retention bonuses for agency employees, with a cap of 10% of the employee's basic pay.
  • An agency's budget request for the following fiscal year, after saving funds, cannot exceed the previous year's request, adjusted for inflation, to prevent artificial budget increases.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. McCormick, Richard [R-GA-7].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Economy Public Investments