Sponsors (19)
The bill strengthens financial transparency, controls, and performance-based budgeting across federal agencies—benefiting taxpayers and oversight—at the cost of higher agency compliance burdens, potential privacy/security exposure, and a slightly shorter government planning horizon.
Taxpayers, Congress, and oversight bodies will get standardized, GAAP-compliant annual financial statements from federal agencies, improving transparency and the reliability of reported government finances.
Strengthened internal-control oversight and required auditor testing will reduce waste, improper payments, and financial errors, protecting taxpayer dollars.
Congress, GAO, and the public will receive agencies' implementation plans and status reports, improving accountability and making it easier to track agency performance and costs.
Federal agencies and their auditors will incur increased compliance costs and workloads to prepare GAAP statements, implement enhanced controls, and meet reporting deadlines — costs that may ultimately fall to taxpayers.
Public release of detailed financial plans and data could risk exposing sensitive information and raise security or privacy concerns for agency staff and the public if protections are insufficient.
Shortening the governmentwide planning horizon from five years to four years may undermine long-term strategic continuity and complicate planning for multi-year projects led by agencies.
Based on analysis of 2 sections of legislative text.
Clarifies and expands agency CFO duties, requires GAAP financial statements, mandates oversight of internal controls and cost-performance integration, and requires agency plans to implement a governmentwide 4-year financial plan.
Introduced February 25, 2025 by Gerald E. Connolly · Last progress February 25, 2025
Requires agency Chief Financial Officers (CFOs) to carry out clearer, broader financial oversight duties, including budget and risk management, internal controls, financial systems, accounting, and other OMB-designated areas. It requires annual agency financial statements to follow U.S. generally accepted accounting principles (GAAP), adds responsibility for integrating performance and cost information, and directs CFOs to oversee internal controls over financial reporting and key financial management information. Directs each CFO to prepare an agency implementation plan, in consultation with financial management experts, to carry out the governmentwide four-year financial management plan; that agency plan must be completed within 90 days of the governmentwide plan, include performance-based financial management metrics, be revised as needed, and be submitted to agency leadership, OMB, the Comptroller General, relevant congressional committees, and made public.