Sponsors (3)
The bill shifts the federal fiscal year to the calendar year to improve planning and legal clarity and preserve spending continuity, but it imposes short-term administrative costs and transitional complexity for governments, businesses, and grantees.
Federal agencies and employees will operate on a consistent calendar-year budget (beginning Jan 1, 2027), simplifying federal planning, reporting, and alignment with state/local fiscal calendars.
Taxpayers, state and local governments will benefit from a short transition (Oct 1–Dec 31, 2026) budget that preserves continuous spending authority during the shift in fiscal years.
State, local, and federal entities will face less legal uncertainty because the bill clarifies how existing statutory authorizations begin and end after the fiscal-year shift.
Federal agencies and OMB will incur administrative costs and must expend staff time on transition planning and implementation, potentially diverting resources from program delivery.
State and local governments and grant programs may face temporary complexity and confusion during the short Oct–Dec 2026 interim funding period, disrupting budgeting and program timelines.
Small businesses and grantees with contracts or grants tied to the traditional Oct 1–Sept 30 cycle may face timing disruptions or costs to renegotiate or adjust to the new schedule.
Based on analysis of 2 sections of legislative text.
Shifts the federal fiscal year from Oct 1–Sept 30 to Jan 1–Dec 31 starting Jan 1, 2027, and requires a transition budget for Oct–Dec 2026.
Introduced September 26, 2025 by Michael R. Turner · Last progress September 26, 2025
Changes the federal fiscal year from the current October 1–September 30 schedule to a January 1–December 31 schedule, effective January 1, 2027. Requires the President to prepare a short transition budget covering October 1–December 31, 2026, and directs OMB to coordinate an orderly transition across federal departments, propose any needed legislation, and clarify how existing statutory references to the old fiscal year dates apply after 2026.