Sponsors (19)
The bill strengthens federal financial transparency and oversight to reduce waste and improve stewardship, but it imposes compliance costs, tight deadlines, and potential security and capacity strains—especially on smaller agencies.
Taxpayers and investors will receive GAAP-based annual financial statements from federal agencies, improving transparency and making it easier to assess agencies' fiscal positions.
Taxpayers and federal employees will benefit from stronger internal controls and performance measurement because agency CFOs and auditors/IGs must implement, test, and report on controls, which should reduce waste and improve stewardship of public funds.
Taxpayers, state and local governments will gain from a governmentwide 4-year financial management plan and agency implementation plans that increase coordination and let Congress and the public track progress on financial management reforms.
Taxpayers and federal employees may face higher costs as agencies incur additional compliance, reporting, and audit expenses to meet GAAP and new requirements, which could divert resources from programs.
Public release of implementation plans and expanded reports could reveal sensitive budgetary or operational details, creating national security or operational risks for certain agencies.
Federal staff may be strained by the short 90-day deadline for agency implementation plans, producing lower-quality initial plans that require frequent revision and impose workload stress.
Based on analysis of 2 sections of legislative text.
Expands federal CFO duties, requires GAAP annual financial statements, mandates oversight of internal controls, and obligates 90-day, performance-based agency plans to implement OMB's 4-year financial management plan, publicly shared.
Introduced February 25, 2025 by Gerald E. Connolly · Last progress February 25, 2025
Expands the duties and reporting responsibilities of federal agency Chief Financial Officers (CFOs), requiring broader leadership over budget, planning, risk management, internal controls, financial systems, and accounting. It also requires agencies to produce annual GAAP financial statements and strengthens oversight and public transparency of financial management. Requires each agency CFO to oversee internal controls over financial reporting and to create a performance-based implementation plan—developed with financial experts—to carry out the Office of Management and Budget's (OMB) 4-year governmentwide financial management plan. Agencies must complete the plan within 90 days after the governmentwide plan is issued, update it as needed, and share it with agency leadership, OMB, the Comptroller General, appropriate congressional committees, and the public.