Incentivize Savings Act

Subchapter I of chapter 13 of title 31, United States Code, is amended by inserting at the end the following:

If a Federal agency does not expend funds appropriated or otherwise made available to the agency for a definite period during the period of availability of such funds—

(1) 49 percent of such total funds shall remain available for an additional fiscal year;

(2) 49 percent of such total funds shall be used for payments of principal and interest on the public debt; and

(3) 2 percent of such total funds shall be used, not later than the date that is 30 days after the last day of the applicable period of availability, for retention bonuses within such Federal agency under section 5754 of title 5.

In carrying out subsection (a)(3)—

(1) notwithstanding such section 5754, any retention bonus paid under such subsection may not exceed an amount equal to 10 percent of the applicable employee’s basic pay; and

(2) any amounts remaining of such total funds after paying all bonuses under such subsection shall be used for payments of principal and interest on the public debt.

If subsection (a) is applied to the funds of a Federal agency, with respect to the fiscal year following the fiscal year in which the availability of such funds expired, the budget submission of the agency to the Office of Management and Budget, and the budget request for the agency in the President’s annual budget submission to Congress under section 1105(a) of this title, may not be greater than the total amount of the budget request for the agency for the fiscal year in which the availability of such funds expired, adjusted by the percentage change in the Consumer Price Index (all items—United States city average) between such fiscal years.

As used in this section, the term Federal agency means an Executive agency (as that term is defined in section 105 of title 5) or any other agency of the executive branch of the Federal Government, including the United States Postal Service and the Postal Regulatory Commission, but does not include the American National Red Cross.

The table of contents for such subchapter is amended by inserting after the item relating to section 1310 the following: