H.R. 5438 Introduced Economics and Public Finance

Incentivize Savings Act

To incentivize Federal agencies to create savings for the American people, and for other purposes.

  1. Introduced
  2. Committee
  3. Passed House
  4. Passed Senate
  5. To President
  6. Became law
Sponsor Rep. McCormick, Richard [R-GA-7] Introduced September 17, 2025 Cosponsors 69 (65 R, 4 D) Latest action February 4, 2026

Summary

Incentivize Savings Act
This bill establishes requirements for allocating unexpended appropriations for federal agencies.
If appropriations are provided to a federal agency for a definite period and the agency does not spend the funds during the period of availability, the bill requires
- 49% of the funds to remain available for an additional fiscal year,
- 49% of the funds to be used for payments of principal and interest on the public debt, and
- 2% of the funds to be used for retention bonuses within the agency that do not exceed 10% of an employee's basic pay.
If an agency's unexpended appropriations are allocated under this bill, the agency's budget request for the fiscal year following the fiscal year in which the funds expired may not exceed the prior year's budget request with an adjustment for inflation.

Summary by the Congressional Research Service, Library of Congress.

Congress.gov

Actions

  1. Feb 4, 2026 Ordered to be Reported (Amended) by the Yeas and Nays: 25 - 19.
  2. Feb 4, 2026 Committee Consideration and Mark-up Session Held
  3. Sep 17, 2025 Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
  4. Sep 17, 2025 Introduced in House

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