Sponsors
Want the short version? I can break this bill down for you
This is not an official government website.
Copyright © 2026 PLEJ LC. All rights reserved.
Limits how much Executive branch agencies can obligate each month during the last two months of a fiscal year by capping monthly obligations at a rate tied to the agency’s prior 10-month average of discretionary spending. Agencies must publish an itemized list of discretionary obligations within 60 days after the fiscal year ends. National security activities and disaster relief spending are exempted.
The bill improves clarity, transparency, and year‑end spending discipline while preserving urgent funding flexibility, but it concentrates administrative burdens, may raise compliance costs, and includes exemptions and scope choices that could create loopholes or hurt service delivery.
Federal agencies, programs, contractors, and agencies get clearer rules about timing and coverage because the bill limits covered actions to the two months before a fiscal year ends and relies on existing statutory definitions for 'discretionary appropriations' and 'Executive agency', reducing legal uncertainty.
Taxpayers and the general public get more transparency into year‑end discretionary spending because agencies must publish itemized discretionary obligations within 60 days after year end.
The government will smooth year‑end spending to avoid sudden large obligations, which can reduce wasteful last‑minute purchases and improve fiscal discipline for the public.
Service members, disaster‑affected people, and emergency responders retain rapid funding flexibility because national security and disaster response obligations are exempted from the monthly cap.
Federal employees, government contractors, and programs will face concentrated compliance and reporting burdens around the fiscal‑year end (two‑month window plus a 60‑day reporting deadline), increasing administrative costs and diverting staff time from program delivery.
Exemptions for national security and disaster relief create opportunities for agencies to reclassify spending to avoid the cap, which could weaken the effectiveness of the limit and reduce accountability for taxpayers.
Agencies may delay necessary end‑of‑year purchases or contracts to stay within caps or reporting windows, potentially reducing the timeliness or quality of government services that the public relies on.
Relying on the statutory definition of 'discretionary appropriations' could exclude mandatory programs and other funding types, leaving some beneficiaries without the bill's protections or obligations.
Designates the official short title of the Act as the "End-of-Year Fiscal Responsibility Act."
Defines "covered period" as the 2-month period immediately preceding the end of a fiscal year.
Defines "discretionary appropriations" by adopting the meaning given in section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)).
Defines "Executive agency" by adopting the meaning given in section 105 of title 5, United States Code.
Require that, except as provided in subsection (c), an Executive agency may not obligate more in any month of a covered period than the average monthly amount obligated by that agency during the 10-month period immediately preceding the covered period.
Who is affected and how:
Executive agencies: Directly affected. Agencies must monitor and limit monthly discretionary obligations during the two-month covered period, compute a 10-month prior average, and produce itemized reports within 60 days after year end. This creates administrative work (data collection, calculations, compliance monitoring) and may require changing procurement, grant, or hiring schedules.
Federal employees: Indirectly affected. Staff involved in budget, grants, contracting, and program offices may face changed workflows, tighter month-to-month spending limits, and additional reporting duties.
Government contractors, state and local governments, and nonprofits that receive discretionary grants or contracts: Moderately affected. They may see delays or re-timing of awards and payments that would otherwise be obligated during the final two months of the fiscal year, affecting cash flow and project start dates.
Programs and recipients relying on year-end obligations: Could experience reduced flexibility to accelerate spending at fiscal year end; agencies may need to obligate funds earlier or spread obligations across the year to avoid hitting monthly caps.
National security and disaster relief programs: Largely unaffected due to explicit exemptions.
Overall fiscal and operational effects:
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Introduced March 11, 2026 by Joni Ernst · Last progress March 11, 2026
Expand sections to see detailed analysis
Committee on Small Business and Entrepreneurship. Hearings held.
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Introduced in Senate