Incentivize Savings Act

The Incentivize Savings Act would change how federal agencies handle money they don't spend within a fiscal year. Currently, agencies often spend all appropriated funds to avoid losing budget authority the next year. This bill would create a new incentive structure: when an agency has unspent funds, 49% would go toward paying down the national debt, 49% would remain available for the agency to use in the following year, and 2% could be used for employee retention bonuses (capped at 10% of an employee's salary). Additionally, if an agency has unspent funds in one year, its budget request for the next year would be limited to the previous year's amount, adjusted only for inflation. The bill has passed committee review and is eligible for a floor vote, though it has not yet become law. Supporters argue it would encourage federal agencies to spend taxpayer money more efficiently and reduce wasteful spending.