Sponsors (3)
The bill aligns the federal fiscal year to the calendar year to simplify federal budgeting and coordination, but it creates short-term administrative costs and misalignment headaches for state and local governments that manage different fiscal cycles.
Federal agencies, Congress, and state/local governments: the federal fiscal year would shift to a Jan 1 start (calendar-aligned), simplifying federal budget planning and coordination across governments.
Federal agencies and taxpayers: a short transition appropriation for Oct 1–Dec 31, 2026 gives agencies legal authority to operate during the shift, reducing the near-term risk of funding gaps.
Federal agencies and oversight bodies: OMB must issue rules and propose additional legislation to manage the change, which should reduce administrative confusion and improve implementation of the transition.
State and local governments: their existing Oct–Sept fiscal years will be misaligned with the new federal calendar, complicating grant timing, budgeting, and cash flow for many subnational governments.
Federal agencies and state/local governments: shifting the fiscal year will impose planning, reporting, and systems costs during the transition, potentially diverting staff time and resources from programs.
Taxpayers: the transition may produce short-term additional administrative and legislative costs to harmonize schedules and systems.
Based on analysis of 2 sections of legislative text.
Moves the federal fiscal year from Oct 1–Sept 30 to Jan 1–Dec 31, effective Jan 1, 2027, and requires a short Oct–Dec 2026 transition period and agency planning.
Introduced September 26, 2025 by Michael R. Turner · Last progress September 26, 2025
Changes the federal government’s fiscal year from the current October 1–September 30 schedule to a January 1–December 31 schedule, effective January 1, 2027. It requires a short transition budget covering October 1–December 31, 2026, directs the Office of Management and Budget to issue transition rules and propose any needed legislation, and updates legal references so future fiscal years are the calendar year (ending December 31).