US HB5438

Federal agencies that do not fully expend appropriated funds during the availability period must allocate unexpended amounts: 49% remains available for an additional fiscal year, 49% goes toward public debt payments, and 2% funds employee retention bonuses

Retention bonuses paid from unexpended funds are capped at 10% of an employee's basic pay, with any remaining bonus allocation redirected to public debt payments within 30 days after the availability period ends

Agencies that trigger these savings provisions face a budget cap the following fiscal year, limited to the prior year's budget request adjusted only for Consumer Price Index inflation

Applies to all Executive Branch agencies including the U.S. Postal Service and Postal Regulatory Commission, but excludes the American National Red Cross