The purpose of the Bonuses for Cost-Cutters and Fraud Preventers Act of 2026 is to improve the way federal agencies can reward employees who identify cost-saving measures or report improper payments. The goal is to encourage employees to help the government save money and prevent financial losses due to errors or fraud. Key provisions of the Act include the establishment of clearer definitions for terms like "improper payment" and "wasteful expenses." It allows agency heads to give cash awards up to $20,000 to employees who successfully identify wasteful expenses or prevent improper payments.