Waste Watch: Feds dish out millions in bonuses to government workers

Though it may be the season of giving, the federal government has been giving away millions of taxpayer dollars to reward government workers for underperforming in their jobs, according to a waste watch analysis.

Multiple government agencies dish out hundreds of millions of dollars in excess funds despite poor performances, delays, and cost overruns, Sen. Joni Ernst, R-Iowa, outlined in a recent letter sent to Elon Musk and Vivek Ramaswamy. President-elect Donald Trump has selected the two to lead the new Department of Government Efficiency (DOGE), an agency that will seek to reduce spending and inefficiencies within the federal government. 

According to the research cited in her letter, the Pentagon is paying millions of dollars in unearned bonuses, including $10.6 million to a contractor that created “a life and safety concern” for airmen by failing to provide the necessary parts for jets.

The Department of Veterans Affairs office of Inspector General announced in May 2024 that the VA misspent $10.8 million on bonuses for its senior executives from the PACT Act, which was passed to care for veterans exposed to toxic substances. As a result of the VA’s mismanagement, the program went bankrupt, forcing Congress to pass an emergency bailout bill. 

“NASA is paying out-of-this-world bonuses totaling more than $500 million to the contractors of the next manned moon mission, which is billions of dollars over budget and years behind schedule as a result of poor performance,” the letter reads. “Houston, we have a problem. Taxpayers were promised the moon but are instead getting stuck with a “moondoggle.””

Waste Watch: Federal government spends billions on empty office space

A recent op-ed proposed a DOGE solution to wasteful agency spending that includes increasing bonuses for decreasing expenditures. With excess money allotted from Congress in an agency’s budget, employees could see increased bonuses while encouraging reductions. 

“The government should give out an annual bonus to all employees in a department that spends less than Congress budgeted for that year — say 5 percent of all savings. That way, workers have an interest in cutting useless spending,” The Hill op-ed reads. “By handing out bonuses to all workers, the government will create a system in which all employees have an incentive to work together to cut government spending.”

Through our Waste Watch series, Carolina Journal shines a spotlight on wasteful government spending at both the state and federal levels, exposing projects that squander taxpayer dollars.

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