It’s About Time Act
The It's About Time Act would shift the U.S. federal fiscal year from a October 1–September 30 cycle to a January 1–December 31 cycle, with the change taking effect January 1, 2027. The bill includes a transition plan for a partial transition year (October 1, 2026, through December 31, 2026), during which the President would submit budget estimates for the transition period and propose necessary changes in law to authorize appropriations for that period. It also provides rules for converting existing authorizations of appropriations to the new calendar-year basis and amends the budget- or appropriation-related titles in law to reflect the December 31 year-end. In short, the bill aims to realign the federal fiscal year with the calendar year and outlines how agencies, Congress, and the executive branch should handle the transition.
Key Points
- 1Change of fiscal year period: The action wouldstrike Oct 1 and replace it with Jan 1; the end date would move from Sep 30 of the following year to Dec 31 of that year, effectively aligning the federal fiscal year with the calendar year beginning in 2027.
- 2Effective date: The new fiscal year schedule would apply starting January 1, 2027.
- 3Transition period planning: The President would promptly prepare a transition budget for Oct 1, 2026 through Dec 31, 2026 and propose needed law changes to authorize appropriations for that period, after consultation with relevant budget and appropriations committees.
- 4Agency transition requirements: The Director of the Office of Management and Budget (OMB) would issue regulations or other guidance to ensure an orderly transition for all federal departments and agencies (and the District of Columbia), including additional proposed legislation as needed.
- 5Conversion of authorization language: Laws that authorize appropriations beginning on Oct 1 of a year after 2026 would be interpreted as beginning on Jan 1 of the following year; laws authorizing appropriations ending on Sep 30 of a year after 2026 would be interpreted as ending on Dec 31 of that year. For fiscal year 2027 and later, authorizations would be construed as referring to the fiscal year ending Dec 31 of the calendar year with the same year number.
- 6Title 1 adjustments: The annual appropriations act’s title-year references would be updated by striking “September 30” and inserting “December 31,” with the changes taking effect for any fiscal year beginning on or after January 1, 2027.