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1 1 (August 9, 2019)

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I   Congressional Budget Office
     Cost  Estimate


August 9, 2019


By Fiscal Year, IVMillions of Dollars 2019          2019-2024            2019-2029
Direct Spending (Outlays)             0                   0                    0


Revenues
Increase or Decrease (-)
in the Deficit


0

0


0

0


0

0


S. 2119 would prohibit federal agencies from awarding a bonus to an employee for five years
following an adverse finding against that employee. The bill defines an adverse finding as a
determination that an employee either has violated agency policy for which the employee
could be removed or suspended from employment for 14 or more days, or has broken the law
and could be imprisoned for more than one year. Under S. 2119, any employee who received
a bonus in the same year as an adverse finding would need to repay the bonus to the agency.

Under current law, there are no restrictions on awarding bonuses to federal employees.
Information from the Department of Veterans Affairs and the Internal Revenue Service
indicates that some employees with conduct and performance issues have received bonuses.
However, recent memorandums   issued by the Office of Personnel Management direct
agencies to reward the highest performing employees using rigorous standards. While CBO
expects that the bill would make it more difficult to award bonuses to employees with
performance issues it would not change the total amount of bonuses that could be awarded
nor add any significant administrative costs to agencies. Therefore, CBO estimates that
implementing S. 2119 would not have a significant budgetary effect.

Enacting S. 2119 could affect direct spending by some agencies that are allowed to use fees,
receipts from the sale of goods, and other collections to cover operating costs. CBO

                See also CBO's Cost Estimates Explained, www.cbo.gov/publication/54437;
  How CBO Prepares Cost Estimates, www.cbo.gov/publication/53519; and Glossary, www.cbo.gov/publication/42904

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