To provide that of amounts available to a designated agency for a fiscal year that are not obligated in the fiscal year, up to 50 percent may be used to pay bonuses to agency personnel and the remainder shall be deposited into the general fund of the Treasury and used exclusively for deficit reduction.

Authorizes the heads of designated Federal agencies to use up to 50 percent of unobligated funds for administrative expenses for bonuses to personnel, with the remainder to be deposited in the general fund of the Treasury and used exclusively for deficit reduction.

Requires the Director of the Office of Management and Budget to designate such agencies and to report annually to the Congress on the effectiveness of this Act in reducing the deficit.