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The Bonuses for Cost-Cutters Act of 2025 strengthens federal employee incentive programs for identifying cost savings and waste. It creates a new category of "surplus salaries and expenses funds" that employees can identify, with identified amounts transferred to the Treasury for deficit reduction or debt reduction. Agencies may retain up to 10 percent of identified savings to pay cash awards to employees who made the identification, with remaining amounts available for agency use. The bill includes reporting requirements and a 6-year sunset provision.
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