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Congress·In Committee·5 months ago

Congress proposes shifting the federal budget year to Jan. 1–Dec. 31 starting in 2027

Also known as: It’s About Time Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Mixed Impacts(11)
Federal Employee
Neutral
Medicare
Neutral
Medicaid
Neutral
Social Security
Neutral
Disability Benefits
Neutral
Snap Food Stamps
Neutral
Housing Assistance
Neutral
Veterans Benefits
Neutral
Unemployment Benefits
Neutral
Retiree
Neutral
Chronic Illness
Neutral

State Impacts

District of ColumbiaDC
Mixed

The bill explicitly requires an orderly transition for the Government of the District of Columbia to the new Jan–Dec federal fiscal year. This could shift DC budget coordination and the timing of federally linked funding decisions, especially around the Oct–Dec 2026 transition period.

Key Points

  • Changes the federal government’s budget year to run from January 1 to December 31 instead of October 1 to September 30.
  • Starts the new fiscal year schedule on January 1, 2027, so budgeting and funding timelines would line up with the calendar year.
  • Requires Trump to send Congress a special “transition” budget for October 1, 2026 through December 31, 2026 (a short, 3‑month budget period).
  • Directs the budget office to guide agencies through the switch so payments, grants, and contracts keep running smoothly during the change.
  • Updates how future spending laws are read, so dates that used to mean Oct. 1 and Sept. 30 would mean Jan. 1 and Dec. 31 after 2026.
EconomyTaxesInfrastructure

Milestones

2 milestones2 actions
Sep 26, 2025House

Referred to the Committee on the Budget, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Sep 26, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Sometime in 2026, as soon as practicable after the law is enacted

A special “transition period” federal budget is prepared for Oct 1–Dec 31, 2026

Instead of a normal 12‑month budget cycle, there would be a short, 3‑month funding plan to bridge into the new Jan–Dec fiscal year. Agencies, contractors, and grant programs may see short-term renewals or adjusted deadlines.

After enactment and leading into late 2026

Office of Management and Budget issues transition instructions to agencies and DC

Federal agencies and the DC government would get the rules for how to switch accounting, reporting, and budget operations to the new calendar. This is meant to reduce payment or service disruptions.

Related News

1 article
The Highland County Press·5 months ago

Reps. Turner and Nadler reintroduce bipartisan legislation to align government funding schedule with calendar year

Covers Turner and Nadler reintroducing the It’s About Time Act to shift the federal fiscal year to align with the calendar year and reduce shutdown risk.

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Source Information

Document Type

Congressional Bill

Official Title

It’s About Time Act

Bill NumberHR 5613
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the Committee on the Budget, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Sponsor

Cosponsors

(2)
D: 2

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.