GSA launches bonuses for cost cutters

GSA has unveiled a new incentive initiative aimed at encouraging internal efficiency. Dubbed “Bonuses for Cost Cutters,” the program will reward GSA employees with financial bonuses if the agency meets a 30 percent reduction target in travel, training, and contract spending by 31 July 2025. Presumably this is for GSA's own contract spend.

Announced by Acting Administrator Stephen Ehikian, the program ties a portion of actual savings to one-time cash awards, which will be distributed to eligible employees in September 2025. Paying bonuses out of savings may violate appropriations law.

“When we talk about building a government that is efficient, accountable, and focused on delivering value to the American people, that begins with empowering our workforce,” said Ehikian. “Bonuses for Cost Cutters recognizes the real impact GSA employees make every day—and rewards it.”

The eligible performance period began 20 January 20, 2025, and includes employees in GS, WG, SES, and SL/ST classifications. Employees must be in good standing to qualify. Political appointees and those with performance issues or under separation proceedings are not eligible.

Ehikian did not explain how retroactive incentives worked.