Sponsors
Ask me to break this bill down.
This is not an official government website.
Copyright © 2026 PLEJ LC. All rights reserved.
Changes federal financial management rules by expanding agency Chief Financial Officers’ duties, requiring each agency to prepare plans to implement a shortened four-year governmentwide financial management plan, and tightening audit and reporting requirements. It also requires agencies to link performance and cost information and to provide annual status reports to Congress and the Comptroller General with the President’s budget.
CFOs must oversee and provide leadership in budget formulation and execution, planning and performance, risk management, internal controls, financial systems, accounting, and other areas OMB designates. In carrying out this duty, each CFO has specified responsibilities.
Add annual agency financial statements prepared in accordance with U.S. generally accepted accounting principles as a CFO responsibility.
CFOs must prepare, with appropriate experts, an agency plan to implement the Director of OMB’s governmentwide 4-year financial management plan and to achieve and sustain effective financial management in the agency.
The agency plan must be completed within 90 days of the issuance of the governmentwide plan by the Director of OMB.
The agency plan must be revised as determined necessary by the Chief Financial Officer.
Who is affected and how:
Federal agencies and their CFO offices: Directly affected; they must develop agency-level plans to implement the governmentwide plan, improve financial reporting to show cost-performance linkages, and meet tighter audit and reporting requirements. This increases planning, reporting, and compliance workloads within finance and program offices.
Heads of departments and senior agency officials: Will need to ensure agency resources, processes, and staff support the CFO-driven planning and implementation steps; may require internal reallocation or new procedures to produce linked cost/performance data.
Comptroller General / GAO and Congress: Gain more frequent and regular visibility into agency progress through annual status reports tied to the President’s budget, supporting oversight and audit work.
Federal auditors and internal control units: Face strengthened audit requirements and may see expanded audit scopes, more frequent reviews, and new expectations for evaluating cost-performance linkages.
Program managers and budget offices: Will need to coordinate closely with CFOs to provide performance data, cost estimates, and other information necessary to demonstrate how spending produces outcomes.
Taxpayers and the public: Indirect beneficiaries if the changes improve transparency, financial stewardship, and the effectiveness of federal spending; however, implementation could require short-term investments of staff time and systems.
Overall effect: Administrative and oversight-focused reforms designed to strengthen how agencies plan, report, and justify spending by linking costs to outcomes and increasing audit and congressional reporting cadence. No direct changes to program authorizations, appropriations, or tax policy are imposed.
Expand sections to see detailed analysis
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Introduced January 13, 2025 by James Lankford · Last progress January 13, 2025
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Introduced in Senate
