H.R. 5613: It’s About Time Act

This bill, known as the "It’s About Time Act," proposes to change the federal fiscal year in the United States. Currently, the federal fiscal year begins on October 1 and ends on September 30 of the following year. This bill seeks to amend this so that the federal fiscal year will instead start on January 1 and end on December 31 of the same calendar year.

Key Provisions

Change of Fiscal Year

The main change mentioned in the bill includes:

• Changing the start date of the fiscal year from October 1 to January 1.
• Changing the end date of the fiscal year from September 30 to December 31.

Effective Date

This change would take effect on January 1, 2027.

Transition to the New Fiscal Year

To facilitate this transition, the bill outlines specific steps that need to be taken:

1. The President must submit budget estimates for a transition period running from October 1, 2026, to December 31, 2026, after consulting with the relevant congressional committees.
2. The Director of the Office of Management and Budget will ensure that all federal departments and agencies transition smoothly to the new fiscal year system and will propose any necessary legislation to Congress to achieve this.

Conversion of Authorizations of Appropriations

Any existing laws that authorize appropriations (the legal authority to spend government funds) that currently reference October 1 would be interpreted as referring to January 1 of the following year. Similarly, appropriations ending on September 30 would be interpreted as ending on December 31.

Title of Appropriation Acts

According to the amendments made, the reference to September 30 in the titles of appropriation acts would also be changed to December 31. This adjustment will take effect for any fiscal year starting on or after January 1, 2027.

Relevant Companies