Waste, Fraud, and Abuse Reduction Act of 1981

Waste, Fraud, and Abuse Reduction Act of 1981 - Requires that two percent of the funds appropriated for each Executive agency be withheld during each of fiscal years 1982 and 1983. Directs each agency: (1) to transmit to Congress a plan to reduce waste, fraud, and abuse in the administration of agency programs during each such year; and (2) by February 1 of each such year, to report to Congress on its efforts to implement such plan.

Authorizes each agency which achieves reductions in waste, fraud, or abuse resulting in savings not exceeding the amount of appropriations withheld, or which determines that no waste, fraud, or abuse exists, to request that the withheld appropriations be released. Directs the Committee on Governmental Affairs of the Senate and the Committee on Government Operations of the House of Representatives to investigate each agency's reduction efforts and to transmit to the Committee on Appropriations of its respective House recommendations on whether all or part of the withheld appropriations should be made available to the agency. Authorizes the Committees on Appropriations to report a joint resolution directing the Secretary of the Treasury to release such funds.