Senate Panel Approves Ayotte, Fischer, McCaskill Bill to Stop Wasteful Federal Bonuses

Press Release

Today, the Senate Homeland Security and Governmental Affairs Committee approved bipartisan legislation introduced by U.S. Senators Kelly Ayotte (R-NH), Deb Fischer (R-NE) and Claire McCaskill (D-MO) to prohibit bonuses for federal employees who engaged in misconduct or have violated the law.

The senators introduced the "Stop Wasteful Federal Bonuses Act" following an IRS Inspector General report revealing that $2.8 million was awarded in bonuses to 2,800 employees with conduct violations between 2010 and 2012. Some agencies, including the IRS, don't consider conduct problems, including tax compliance, when determining bonuses - highlighting the need for the legislation.

"Federal employees with serious disciplinary problems should absolutely not be getting bonuses," said Senator Ayotte. "The federal government wastes too much money as it is, and this bipartisan legislation takes commonsense steps to prevent employees with significant conduct infractions from receiving bonus pay."

"Federal employees who have broken the law should not receive bonuses at the expense of hardworking American taxpayers. Our bill takes meaningful steps to stop this outrageous practice while helping ensure taxpayer dollars are being used more efficiently and effectively," said Senator Fischer.

"We shouldn't be spending taxpayer dollars rewarding employees who have engaged in egregious professional or criminal misconduct," said Senator McCaskill. "This legislation would put a stop to that, and help boost Americans' confidence that their government is spending money wisely by limiting bonuses only to those exemplary employees that truly make government work better for the American people-so I'm encouraged it's now one step closer to passage by the full Senate."

The "Stop Wasteful Federal Bonuses Act" prohibits a federal agency from awarding a bonus to any employee for five years after the end of a fiscal year in which an adverse finding is made relating to the employee. The bill also requires that employees repay the bonus they were awarded in any year in which an adverse finding is made.

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