H.R. 5438 — Incentivize Savings Act

This section establishes special rules for unexpended appropriations of executive branch agencies (including the U.S. Postal Service and Postal Regulatory Commission, but excluding the American National Red Cross) by inserting new section 1311 into subchapter I of chapter 13 of title 31, United States Code. For funds appropriated or made available for a definite period that are not fully expended during their period of availability, the rules direct that (1) 49% of such funds remain available for one additional fiscal year; (2) 49% be used for payments of principal and interest on the public debt; and (3) 2% be used within 30 days after the period of availability expires for retention bonuses under 5 U.S.C. §5754 (capped at 10% of an employee's basic pay, with any remainder transferred to public debt payments). If these rules apply to an agency's funds, the agency's subsequent fiscal year budget submission to the Office of Management and Budget, and the President's budget request for the agency under 31 U.S.C. §1105(a), may not exceed the prior fiscal year's request adjusted by the percentage change in the Consumer Price Index for All Urban Consumers (U.S. city average).