Great idea, but there would have to be a good deal of trust required for any to believe that they wouldn't be penalized for not spending every cent they received, and I see very little trust in DC. I suspect they might feel that they would be told, after the fact, that since they showed that they could get by on less, that lesser amount would be the new baseline. I'm basing my comments on the whining and outrage we have heard when the one or two percent cut being discussed now means the world is coming to an end! Incentives to save don't seem to work when it's not your own personal money being discussed.
As I have posted previously, in the business world when cuts become necessary, each department head is told to make the decision as to where those cuts will be made to meet the new guidelines. NO exceptions are made. They know where the waste is, and the pain is the same for all. If they don't comply, the cuts are generally made by the Finance Division, but they ARE made!