5 USC § 4512 - Agency awards for cost savings disclosures

---
identifier: "/us/usc/t5/s4512"
source: "usc"
legal_status: "official_legal_evidence"
title: "5 USC § 4512 - Agency awards for cost savings disclosures"
title_number: 5
title_name: "GOVERNMENT ORGANIZATION AND EMPLOYEES"
section_number: "4512"
section_name: "Agency awards for cost savings disclosures"
chapter_number: 45
chapter_name: "INCENTIVE AWARDS"
subchapter_number: "II"
subchapter_name: "AWARDS FOR COST SAVINGS DISCLOSURES"
part_number: "III"
part_name: "EMPLOYEES"
positive_law: true
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 97–35, title XVII, § 1703(a), Aug. 13, 1981, 95 Stat. 755; amended Pub. L. 99–145, title XII, § 1225(b)(2), Nov. 8, 1985, 99 Stat. 730.)"
---


# § 4512. Agency awards for cost savings disclosures

**(a)** The Inspector General of an agency, or any other agency employee designated under subsection (b), may pay a cash award to any employee of such agency whose disclosure of fraud, waste, or mismanagement to the Inspector General of the agency, or to such other designated agency employee, has resulted in cost savings for the agency. The amount of an award under this section may not exceed the lesser of—

For purposes of paragraph (2), the Inspector General or other designated employee may take into account agency cost savings projected for subsequent fiscal years which will be attributable to such disclosure.

**(1)** $10,000; or

**(2)** an amount equal to 1 percent of the agency’s cost savings which the Inspector General, or other employee designated under subsection (b), determines to be the total savings attributable to the employee’s disclosure.

**(b)** In the case of an agency for which there is no Inspector General, the head of the agency shall designate an agency employee who shall have the authority to make the determinations and grant the awards permitted under this section.

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**Source Credit**: (Added Pub. L. 97–35, title XVII, § 1703(a), Aug. 13, 1981, 95 Stat. 755; amended Pub. L. 99–145, title XII, § 1225(b)(2), Nov. 8, 1985, 99 Stat. 730.)

## Editorial Notes

### Amendments

1985—Subsec. (c).  struck out subsec. (c) which provided that the Inspector General, or other employee designated under subsection (b), shall submit to the Comptroller General documentation substantiating any award made under this section and that the Comptroller General shall, from time to time, review awards made under this section and procedures used in making such awards to verify the cost savings for which the awards were made.

## Statutory Notes and Related Subsidiaries

### Effective Date

Section effective , see , set out as an Effective Date of 1981 Amendment note under .