It’s About Time Act
- Sponsor
- Rep. Turner, Michael R. [R-OH-10]
- Committees
- Oversight and Government Reform Committee (primary)
- Last action
- Sep 26, 2025
Bottom line
The "It's About Time Act" aims to synchronize the federal fiscal year with the calendar year, potentially simplifying budgeting and improving transparency, but requiring a significant administrative transition.
What it actually does
This bill, titled the "It's About Time Act," proposes to shift the Federal government's fiscal year to align with the calendar year. Specifically, it changes the fiscal year period from October 1 through September 30 to January 1 through December 31, effective January 1, 2027. It also mandates a transition budget for the interim period and requires the Office of Management and Budget (OMB) to oversee an orderly transition for all federal and District of Columbia agencies.
Proponents argue
Proponents argue that aligning the federal fiscal year with the calendar year would simplify budgeting processes, make financial reporting more intuitive for the public, and facilitate better coordination with state and local governments, many of which already operate on a calendar year or July 1-June 30 fiscal year. They might also suggest it could reduce the frequency of continuing resolutions by providing a clearer timeline for appropriations.
Opponents contend
Opponents might contend that changing the fiscal year would create immense administrative burden and disruption for federal agencies, requiring extensive reprogramming of financial systems and processes. They could also argue that the current October 1 start date is well-established and changing it would not fundamentally resolve budget impasses, which are often political rather than calendrical. The transition period itself could lead to confusion and inefficiencies.
The bill is very short and straightforward, making it highly accessible for any reader to understand its core purpose.
Section 2(a)(1)
Redefinition of Federal Fiscal Year
This provision amends Section 1102 of title 31, United States Code, to change the start date of the federal fiscal year from October 1 to January 1 and the end date from September 30 to December 31. This effectively aligns the federal government's financial year with the standard calendar year, a fundamental shift in how federal finances are structured and reported.
Supporters argue
Supporters argue this change will make federal budgeting more logical and easier for the public to understand, as it aligns with the common calendar year. It could also streamline coordination with many state and local governments and private sector entities.
Critics contend
Critics contend that while seemingly simple, this change would necessitate a massive, costly, and disruptive overhaul of all federal financial systems, processes, and reporting, creating significant administrative burdens during the transition.
Tradeoffs
The tension lies between the potential long-term benefits of a more intuitive fiscal calendar and the immediate, substantial administrative costs and disruption associated with such a fundamental change to government operations.
Section 2(a)(2) and 2(b)(1)
Delayed Implementation and Interim Budget Requirement
The new fiscal year structure will become effective on January 1, 2027, providing over a year for preparation. To manage the shift, the President is required to prepare and submit a special budget for a three-month transition period, covering October 1, 2026, to December 31, 2026. This ensures continuous funding and operations during the changeover, preventing any gaps in federal services.
Section 2(b)(2)
OMB-Led Agency Transition
This section tasks the Director of the Office of Management and Budget (OMB) with providing regulations, orders, or other guidance to ensure an orderly transition for all federal departments, agencies, and instrumentalities, as well as the Government of the District of Columbia, to the new fiscal year. OMB is also required to submit any necessary additional proposed legislation to Congress to facilitate this objective.
Section 2(c) and 2(d)
Reinterpretation of Fiscal Year References in Law
This provision automatically reinterprets existing laws that refer to authorizations of appropriations commencing on October 1 or ending on September 30 for any year after 2026, to mean January 1 or December 31, respectively. It also amends Section 105 of title 1, United States Code, to change the reference for appropriation act titles from "September 30" to "December 31," effective for fiscal years starting on or after January 1, 2027, ensuring legal consistency.