Federal agencies could use up to 50 percent of the money they have left over at the end of each fiscal year to pay bonuses to employees, under a bill introduced in the House.
Rep. John Duncan, R-Tenn., introduced H.R. 993 last month. Under the bill, agencies wouldn't have to return all the money they have left at the end of the fiscal year to the Treasury. Instead, agencies could keep half the money designated for administrative expenses and divide it up among outstanding personnel in the form of year-end bonuses.
The money returned to the Treasury would be used exclusively for deficit reduction, according to the bill.
Agencies have long been criticized for rushing at the end of the fiscal year to spend any leftover money Congress had appropriated. The General Accounting Office reported last year (AIMD-98-185) that such spending has been curtailed over the years by budget constraints and procurement reforms.
The bill has been referred to the House Government Reform Subcommittee on the Civil Service.
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