End-of-Year Fiscal Responsibility Act
- Sponsor
- Sen. Ernst, Joni [R-IA]
- Committees
- Homeland Security and Governmental Affairs Committee (primary), Small Business and Entrepreneurship Committee
- Last action
- Mar 18, 2026
Bottom line
The bill seeks to impose spending discipline on federal Executive agencies during the final two months of the fiscal year, with exceptions for national security and disaster relief.
What it actually does
This bill, the "End-of-Year Fiscal Responsibility Act," aims to curb what is often referred to as "use-it-or-lose-it" spending by federal Executive agencies at the end of the fiscal year. It mandates that the amount of discretionary appropriations obligated by an Executive agency during the last two months of a fiscal year cannot exceed the average monthly spending of the preceding ten months. Additionally, agencies must publicly report an itemized list of these end-of-year obligations.
Proponents argue
Proponents argue that this bill will prevent wasteful spending driven by agencies rushing to obligate funds before the fiscal year ends to avoid budget cuts in the next cycle. They contend it promotes more efficient resource allocation, reduces unnecessary expenditures, and increases transparency by requiring public reporting of end-of-year spending, ultimately leading to greater fiscal responsibility.
Opponents contend
Opponents might argue that such rigid spending caps could hinder agencies' ability to respond to unforeseen needs or complete critical projects that genuinely require end-of-year funding. They may also contend that it could lead to agencies artificially front-loading spending earlier in the year to meet the average, or that it creates administrative burdens without significantly impacting overall fiscal health, potentially disrupting legitimate procurement processes.
The bill is very short and straightforward, making it highly accessible for any reader to understand its core provisions quickly.
Section 3(a)
Limitation on End-of-Year Spending
This provision establishes a cap on how much federal Executive agencies can spend using discretionary appropriations during the last two months of a fiscal year. Specifically, the amount obligated in each of these two months cannot be more than the average monthly amount obligated by that agency during the preceding ten months of the same fiscal year. This aims to prevent a surge in spending as the fiscal year concludes.
Supporters argue
Supporters argue this cap directly addresses the problem of wasteful "use-it-or-lose-it" spending, where agencies rush to spend remaining funds at year-end to justify their budget for the next year. They believe it will encourage more thoughtful and consistent spending patterns throughout the fiscal year, leading to better resource management and taxpayer savings.
Critics contend
Critics might argue that this cap is overly rigid and could prevent agencies from making necessary, legitimate expenditures that arise late in the fiscal year. They contend it could force agencies to delay critical projects or procurements, potentially leading to inefficiencies or higher costs in the long run, or that it might encourage agencies to spend more earlier in the year to inflate their average.
Tradeoffs
The provision balances the goal of preventing wasteful end-of-year spending against the need for agencies to maintain flexibility in managing their budgets and responding to emergent needs. It creates a tension between strict fiscal discipline and operational agility, potentially forcing agencies to prioritize differently.
Section 3(b)
Public Reporting Requirement
This provision requires every Executive agency to submit an itemized list of all discretionary appropriations they obligated during the last two months of the fiscal year. This report must be sent to Congress and published on a publicly accessible website within 60 days after the fiscal year ends, increasing transparency around end-of-year expenditures.
Section 3(c)
Exemptions for National Security and Disaster Relief
This provision carves out specific exceptions to the end-of-year spending limits. Discretionary appropriations obligated by an Executive agency for national security-related activities or disaster relief efforts are not subject to the monthly spending caps. This ensures that critical functions related to national defense and emergency response are not hampered by the new fiscal restrictions.