Sponsors (3)
The bill trades clearer, calendar-year-aligned budgeting and improved intergovernmental coordination for short-term administrative costs, legal complexity, and a heightened risk of near-term funding uncertainty during the transition.
Federal agencies and taxpayers: the bill shifts the federal fiscal year to the calendar year, simplifying federal budgeting, accounting, and reporting and making fiscal schedules more predictable.
Congress, the President, and federal agencies: requires the President and OMB to produce transition budgets and proposed legislation for Oct–Dec 2026, creating an explicit fallback plan intended to reduce the risk of funding gaps and help Congress plan the shift.
State and local governments, grantees, and institutions (e.g., schools, universities): aligning the federal fiscal year with the calendar year better matches many state/local accounting cycles and calendar-year contracts, easing intergovernmental coordination and grant management.
All federal agencies and their employees (and ultimately taxpayers): the transition will impose upfront administrative costs and significant workload to change accounting, IT, payroll, and grant systems.
Congress, program beneficiaries, and taxpayers: the short Oct–Dec 2026 transition window increases the chance of needing additional appropriations or stopgap legislation, raising near-term budget complexity and the risk of temporary funding uncertainty or service disruptions.
State and local governments, grantees, and others relying on statutory timelines: converting many statutes' fiscal-year dates could create legal ambiguity or disputes about the timing of authorizations and expirations during implementation.
Based on analysis of 2 sections of legislative text.
Introduced September 26, 2025 by Michael R. Turner · Last progress September 26, 2025
Changes the federal government’s fiscal year to match the calendar year by moving the start from October 1–September 30 to January 1–December 31, effective January 1, 2027. It directs the President and OMB to prepare and submit transition budget estimates, proposed legislation, and regulations to manage the shift and to make legal conversions for existing laws and authorizations that reference the old fiscal year dates. Requires a short transition planning process covering October 1–December 31, 2026, and gives OMB authority to issue rules and propose further statutory changes needed to implement an orderly transition across federal departments, agencies, instrumentalities, and the District of Columbia government.