S. 2090: Budget Reform Act of 2025

The Budget Reform Act of 2025 is designed to improve the federal budget process by introducing several key changes aimed at enhancing transparency and accountability in budgeting. The main features of the bill include:

Reforms to the Budget Process

The bill proposes reforms to the Congressional Budget Office (CBO) to ensure more accurate forecasting and analysis of budgetary impacts. This is intended to improve the quality of fiscal data available for policymaking.

Zero-Based Budgeting

One of the significant changes involves shifting to a zero-based budgeting approach. This means that every budget cycle will require departments to justify their expenses from the ground up, rather than starting from the prior year's budget. This is expected to lead to more efficient allocation of resources by ensuring that all spending is justified and aligned with current priorities.

Biennial Budget Cycle

The act transitions the budget submission, appropriations, and reporting process from an annual to a biennial schedule. This change allows the government to plan for a two-year period, which is seen as a way to promote long-term planning and reduce the frequency of budgetary crises that can arise from annual negotiations. The newly adopted biennial cycle is set to take effect on January 1, 2027, applying to the budget that will begin in fiscal year 2028.

New Requirements for Budget Submissions

The legislation introduces new requirements for budget submissions, mandating greater transparency and adherence to stricter timelines throughout the budget process. This aims to ensure that all stakeholders have access to relevant information in a timely manner, supporting better oversight and decision-making.

Implementation Timeline

The effective date for the transition to these new practices is January 1, 2027, signaling the beginning of a significant shift in how the federal government manages its financial planning and accountability.

Summary of Impacts

Overall, the Budget Reform Act of 2025 seeks to create a more efficient and transparent federal budgeting process, addressing issues related to budget forecasting, resource allocation, and compliance.

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