The Incentivize Savings Act creates a financial incentive system for federal agencies to spend less than their annual budgets. When a federal agency has unexpended funds at the end of the fiscal year, the bill directs that 49 percent of those unspent dollars can be carried forward to the next year, 49 percent must go toward paying down the national debt, and 2 percent can be used for employee retention bonuses (capped at 10 percent of an employee's salary, with any remaining bonus funds also going to debt reduction). The legislation affects all executive branch agencies and departments. Additionally, any agency that triggers these savings rules cannot request a larger budget in the following year than it did in the current year, except for increases that match inflation as measured by the Consumer Price Index, creating a long-term budget constraint for agencies that successfully reduce spending.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.